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

(June 30, 2005)

www.preit.com

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

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—Property Type		6

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

Income Statement—Property Type- Quarterly Comparison		8

Income Statement—Retail (Property Status) -Quarterly Comparison		9

Income Statement—Retail (Property Subtype) -Quarterly Comparison		10

FFO and FAD		11

Key Ratios		12

Property Debt Schedule—Wholly Owned		13

Property Debt Schedule—Partnerships		14

Debt Amortization Schedule		15

Debt Analysis		16

Debt Ratios		17

Portfolio Summary—Retail		18

Property Acquisitions/Dispositions- Quarterly Summary		19

Property Development/Redevelopment Summary		20

Top Twenty Tenants Schedule		21

Lease Expiration Schedule - Anchor Tenants		22

Lease Expiration Schedule - Non-Anchor Tenants		23

New Lease/Renewal Summary and Analysis		24

Capital Expenditures-Quarterly		25

Enclosed Mall-Summary and Occupancy		26

Enclosed Mall-Rent Summary		27

Power Center- Summary and Occupancy		28

Strip Center- Summary and Occupancy		29

Retail Overall- Summary and Occupancy		30

Summary of Portfolio Services		31

Flash Report-Quarterly		32

RECONCILIATION TO GAAP:

Balance Sheet-Reconciliation to GAAP		33

Income Statement-Reconciliation to GAAP -Quarterly		34

Flash Report-Reconciliation to GAAP- Quarterly		35

Definitions page		36

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, 2004.

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

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 located in the eastern United States. As of August 4, 2005, PREIT’s portfolio consists of 51 properties (approximately 32.9 million square feet) in 12 states. PREIT’s portfolio includes 37 shopping malls, 13 strip and power centers and one office property. PREIT is headquartered in Philadelphia, Pennsylvania.

Research Coverage


Company	Analyst	Phone Number
Green Street Advisors	Gregory R. Andrews Mark Berry	(949) 640-8780 (949) 640-8780

JP Morgan	Michael W. Mueller Anthony Paolone Joshua Bederman	(212) 622-6689 (212) 622-6682 (212) 622-6530

Legg Mason Wood Walker	David M. Fick Nathan Isbee	(410) 539-0000 (410) 454-4143

Lehman Brothers	David Harris Alexander D. Goldfarb	(212) 526-1790 (212) 526-5232

UBS	Ian C. Weissman Keith A. Mills Frank Rybinski	(212) 713-8602 (212) 713-3098 (212) 713-2364

Quarterly Earnings Schedule

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


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

⁽¹⁾	Tentative dates.

Quarterly conference calls are arranged by KCSA Worldwide. To participate, please contact Jeffrey Goldberger at (212) 896-1249.

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

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

PAGE 1

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

Time Line/Recent Developments

August 4, 2005 - PREIT announced three redevelopment initiatives: Plymouth Meeting Mall (Whole Foods), Lycoming Mall (Dick’s Sporting Goods, Borders, and Best Buy), and South Mall (Ross Dress For Less). The Company also reports continued progress on its redevelopment program.

July 20, 2005 - PREIT announced that it intended to release its financial results for the second quarter and six months ended June 30, 2005, on Thursday, August 4, 2005. It also announced that management will hold a conference call that day at 3:00 PM EDT to review the Company’s results, market trends and future outlook.

July 12, 2005 - PREIT announced that it had completed a $66.0 million refinancing of the mortgage loan on Magnolia Mall in Florence, South Carolina.

June 9, 2005 - Ronald Rubin, Chairman and CEO, presented at the National Association of Real Estate Investment Trust’s (NAREIT) Institutional Investor Forum.

June 7, 2005 - PREIT announced that it had entered into interest rate swap agreements to hedge interest rates on $370 million of future debt.

May 19, 2005 - PREIT announced that its Board of Trustees has approved a 5.6% increase in the quarterly cash dividend for the Company’s common shares to $0.57 per share. The dividend will be paid on June 15, 2005 to common shareholders of record on June 1, 2005. On an annualized basis, the cash dividend will be $2.28, as compared to the previous annual dividend of $2.16.

May 2, 2005 - PREIT announced its results for the first quarter ended March 31, 2005. Net income available to common shareholders was $0.21 per diluted share. FFO per common share and Operating Partnership unit (“share”) was $0.89.

April 26, 2005 - PREIT announced its plans for $360 million in future financings for Cherry Hill Mall in Cherry Hill, New Jersey, and Willow Grove Park in Willow Grove, Pennsylvania.

April 25, 2005 - PREIT announced that it intended to release its financial results for the first quarter ended March 31, 2005, on Monday May 2, 2005. It also announced that management will hold a conference call on Monday, May 2, 2005, at 3:00PM EDT to review the Company’s first quarter results, market trends and future outlook.

April 4, 2005 - PREIT announced that it had completed the acquisition of Gadsden Mall in Gadsden, Alabama, for approximately $58.8 million.

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

PAGE 2

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

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).


	Q2:6/30/05		Q1:3/31/05		CY:12/31/04		Q2:6/30/04		CY:12/31/03		CY 12/31/02
High Price	$	48.10	$	43.21	$	43.70	$	37.87	$	36.30	$	27.20
Low Price	$	39.66	$	38.91	$	30.25	$	30.25	$	24.70	$	20.55
Close	$	47.50	$	40.32	$	42.80	$	34.25	$	36.30	$	26.00
Average Daily Trading Volume		119,916		146,698		161,659		181,397		109,892		41,495
Common Shares Outstanding		36,511,624		36,474,699		36,272,162		35,938,306		35,544,265		16,697,119
O.P. Units		4,686,418		4,686,418		4,413,559		4,444,030		3,691,516		1,763,318

Total Shares Outstanding		41,198,042		41,161,117		40,685,721		40,382,336		39,235,781		18,460,437
Weighted Average of Common Shares		36,024,984		35,972,274		35,609,350		35,516,772		20,389,577		16,162,327
Weighted Average of O.P. units		4,686,418		4,583,338		4,183,059		4,028,892		2,303,449		1,804,779

Weighted Average Common Shares and O.P. Units		40,711,402		40,555,612		39,792,409		39,545,664		22,693,026		17,967,106
Preferred Shares, Nominal Value	$	123,750,000	$	123,750,000	$	123,750,000	$	123,750,000	$	123,750,000		—
Market Value of Shares (based on closing price)	$	2,080,656,995	$	1,783,366,237	$	1,865,098,859	$	1,506,845,008	$	1,548,008,850	$	479,971,362

Shareholder Information

Ten Largest Institutional Shareholders:

Common Shares Held ⁽¹⁾


	6/30/2005
RREEF Real Estate Securities Advisers, L.P.	4,952,882
Vanguard Group, Inc.	1,702,472
Barclays Global Investors	1,452,736
J.P Morgan Investment Management Inc. (NY)	1,281,221
ING Clarion Real Estate Securities	1,269,053
Neuberger Berman, LLC	869,986
ABP Investment U.S.,Inc	843,800
State Street Global Advisors	767,318
Urdang Investment Management, Inc.	495,535
Cohen & Steers Capital Management Inc	432,400
*TOTAL of Ten Largest Institutional:*	14,067,403
*TOTAL of all Institutional holders:*	22,664,459
*Ten Largest as % of Total Institutional:*	62.1	%

(1)	Based on 13F filings as of 6/30/05 or most recent filings.

LOGO


Share Ownership by Insiders: Shares Held (including O.P. Units, Beneficial Ownership and Exercisable Options) *	As of 4/1/05⁽¹⁾	% of Total ⁽²⁾		Interim Net Purchases of Shares ⁽³⁾		As of 4/1/04⁽⁴⁾	% of Total ⁽⁵⁾
Mark Pasquerilla	2,289,005	5.6	%	(109,068	)	2,398,073	5.9	%
Ronald Rubin	1,532,162	3.7	%	672,693		859,469	2.1	%
George F. Rubin	785,773	1.9	%	350,848		434,925	1.1	%
Stephen B. Cohen	471,030	1.1	%	N/A		N/A	N/A
Leonard I. Korman	365,100	0.9	%	1,625		363,475	0.9	%
Edward A. Glickman	255,598	0.6	%	29,742		225,856	0.6	%
Jonathan B. Weller	172,709	0.4	%	6,973		165,736	0.4	%
Joseph F. Coradino	142,808	0.3	%	17,765		125,043	0.3	%
Jeffrey A. Linn	71,868	0.2	%	(582	)	72,450	0.2	%
Douglas S. Grayson	55,582	0.1	%	10,276		45,306	0.1	%
Robert F. McCadden	47,356	0.1	%	N/A		N/A	N/A
David J. Bryant	29,857	0.1	%	4,963		24,894	0.1	%
Bruce Goldman	22,128	0.1	%	5,629		16,499	0.0	%
Lee H. Javitch	17,000	0.0	%	1,625		15,375	0.0	%
Rosemarie B. Greco	11,000	0.0	%	1,625		9,375	0.0	%
Ira Lubert	7,750	0.0	%	2,250		5,500	0.0	%
Donald Mazziotti	4,307	0.0	%	2,322		1,985	0.0	%
John J. Roberts	3,250	0.0	%	2,250		1,000	0.0	%

*TOTAL* *⁽⁶⁾*	6,009,515	14.6	%	1,000,936		4,708,120	11.6	%

*	Current ownership information is available on the Company website and in SEC filings.

(1)	Source of Insider Ownership: Proxy dated April 18, 2005. Refer to footnotes in proxy for details on beneficial ownership.

(2)	Based on fully diluted shares outstanding as of June 30, 2005.

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

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

(5)	Based on fully diluted shares outstanding as of June 30, 2004.

(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.

Distribution Information for Common Shares


	Q2:6/30/05			Q1:3/31/05			CY:12/31/04			Q2:6/30/04			CY:12/31/03			CY 12/31/02
Dividend per share	$	0.570		$	0.540		$	2.160		$	0.540		$	2.070		$	2.040
Annualized Dividend Yield ⁽¹⁾		4.8	%		5.4	%		5.0	%		6.3	%		5.7	%		7.8	%
Capital Gain Pre-May 6		N/A			N/A		$	0.026		$	—		$	0.096		$	0.082
Capital Gain Post-May 5		N/A			N/A		$	—		$	—		$	0.213		$	—
Section 1250 Gain		N/A			N/A		$	0.026		$	—		$	0.480		$	—
Return of Capital/Non-Taxable		N/A			N/A		$	0.517		$	0.153		$	0.085		$	0.134
Qualified 5 Year Gain (incl. in cap. Gain)		N/A			N/A		$	—		$	—		$	—		$	—
Ordinary Income		N/A			N/A		$	1.617		$	0.387		$	1.196		$	1.824

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


Breakdown of Share & Unit Ownership: Shares Held	6/30/2005	6/30/04	% of 6/30/05 total
Institutional ⁽¹⁾	22,664,459	20,628,341	55.0	%
Retail ⁽²⁾	12,957,933	15,435,252	31.5	%
Insiders ⁽³⁾	5,575,650	4,318,743	13.5	%

*TOTAL*	41,198,042	40,382,336	100.0	%

LOGO

(1)	Based on 13F filings as of 6/30/05 or most recent filings.

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

(3)	Insider holdings as of 4/1/05. (Shares and O.P. Units only. Excludes 433,865 exercisable options).

PAGE 3

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

MARKET CAPITALIZATION


	June 30, 2005			March 31, 2005			December 31, 2004			June 30, 2004			December 31, 2003			December 31, 2002
EQUITY CAPITALIZATION
Shares Outstanding		36,511,624			36,474,699			36,272,162			35,938,306			35,544,265			16,697,119
O.P. Units Outstanding		4,686,418			4,686,418			4,413,559			4,444,030			3,691,516			1,763,318

TOTAL Shares and O.P. Units		41,198,042			41,161,117			40,685,721			40,382,336			39,235,781			18,460,437

Market Price (at end of period)	$	47.50		$	40.32		$	42.80		$	34.25		$	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	$	2,080,656,995		$	1,783,366,237		$	1,865,098,859		$	1,506,845,008		$	1,548,008,850		$	479,971,362

DEBT CAPITALIZATION
Unsecured Debt Balance	$	431,000,000		$	402,000,000		$	271,000,000		$	219,000,000		$	170,000,000		$	—
Secured Debt Balance		1,284,981,735			1,307,545,347			1,326,127,000			1,376,148,003			1,396,262,538			617,279,770

Debt Capitalization	$	1,715,981,735		$	1,709,545,347		$	1,597,127,000		$	1,595,148,003		$	1,566,262,538		$	617,279,770

TOTAL MARKET CAPITALIZATION	$	3,796,638,730		$	3,492,911,584		$	3,462,225,859		$	3,101,993,011		$	3,114,271,388		$	1,097,251,132

*Preferred Shares/Total Market Capitalization*		3.3	%		3.5	%		3.6	%		4.0	%		4.0	%		0.0	%
*Shares and O.P. Units/Total Market Capitalization*		51.5	%		47.5	%		50.3	%		44.6	%		45.7	%		43.7	%
*Debt Capitalization/Total Market Capitalization*		45.2	%		48.9	%		46.1	%		51.4	%		50.3	%		56.3	%
*Equity Capitalization/Total Market Capitalization*		54.8	%		51.1	%		53.9	%		48.6	%		49.7	%		43.7	%
*Unsecured Debt Balance/Total Debt*		25.1	%		23.5	%		17.0	%		13.7	%		10.9	%		0.0	%



CAPITAL RESOURCES

	June 30, 2005			March 31, 2005			December 31, 2004			June 30, 2004			December 31, 2003			December 31, 2002
Cash on Hand	$	30,308,297		$	34,378,813		$	45,652,723		$	31,885,512		$	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)		(448,985,396	)		(410,054,533	)		(279,054,533	)		(220,195,000	)		(170,500,000	)		(131,473,671	)

Available LOC ⁽²⁾	$	51,014,604		$	89,945,467		$	220,945,467		$	279,805,000		$	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	$	737,176,859		$	780,178,238		$	922,452,148		$	967,544,470		$	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 (June 30, 2005)

BALANCE SHEET

(Wholly Owned vs. Partnerships)


	June 30, 2005												December 31, 2004
	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⁾	$	2,628,462,262		$	131,557,745			—		$	2,760,020,007		$	2,518,364,388		$	131,343,981			—		$	2,649,708,369
Office/Industrial Properties		4,076,672			—			—			4,076,672			2,504,211			—			—			2,504,211
Land Held for Development		5,937,674			—			—			5,937,674			9,862,704			—			—			9,862,704
Construction In Progress		36,181,577			3,128,540			—			39,310,117			10,952,450			2,542,307			—			13,494,757

TOTAL INVESTMENTS IN REAL ESTATE		2,674,658,185			134,686,285			—			2,809,344,470			2,541,683,753			133,886,288			—			2,675,570,041
Accumulated Depreciation		(187,197,431	)		(35,733,665	)		—			(222,931,096	)		(150,885,609	)		(34,023,363	)		—			(184,908,972	)

Net Real Estate		2,487,460,754			98,952,620			—			2,586,413,374			2,390,798,144			99,862,925			—			2,490,661,069

Other Assets:
Cash and Cash Equivalents		10,073,775			4,589,622			15,644,900			30,308,297			24,799,962			5,609,103			15,243,658			45,652,723
Rents and Other Receivables		29,875,534			11,147,431			1,750,222			42,773,187			27,290,269			11,328,239			4,691,310			43,309,818
Other Assets Held for Sale ⁽¹⁾		7,452,350			—			—			7,452,350			6,835,290			—			—			6,835,290
Intangible Assets ⁽²⁾		162,330,922			—			12,045,312			174,376,234			159,804,366			—			12,045,312			171,849,678
Deferred Costs, Prepaid Taxes & Exp. & Other Assets		43,721,329			6,918,799			21,479,919			72,120,047			42,868,575			7,550,568			19,782,031			70,201,174

TOTAL OTHER ASSETS		253,453,910			22,655,852			50,920,353			327,030,115			261,598,462			24,487,910			51,762,311			337,848,683

TOTAL ASSETS		2,740,914,664			121,608,472			50,920,353			2,913,443,489			2,652,396,606			124,350,835			51,762,311			2,828,509,752

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable		1,129,431,672			106,387,137			—			1,235,818,809			1,162,479,171			107,513,205			—			1,269,992,376
Mortgage Debt Premium ⁽³⁾		49,162,926			—			—			49,162,926			56,134,624			—			—			56,134,624
Bank Loans Payable		—			—			431,000,000			431,000,000			—			—			271,000,000			271,000,000
Liabilities Related to Assets Held for Sale		1,323,289			—			—			1,323,289			1,164,210			—			—			1,164,210
Other Liabilities ⁽⁴⁾		49,175,649			2,486,826			30,836,251			82,498,726			50,284,826			3,351,797			40,147,000			93,783,623

TOTAL LIABILITIES		1,229,093,536			108,873,963			461,836,251			1,799,803,750			1,270,062,831			110,865,002			311,147,000			1,692,074,833

Minority Interest		3,308,606			—			136,782,558			140,091,164			3,584,992			—			128,383,925			131,968,917

Shareholders’ Equity:
Shares of Beneficial Interest at $1 Par		—			—			36,511,624			36,511,624			—			—			36,272,160			36,272,160
Preferred Shares at $0.01 Par		—			—			24,750			24,750			—			—			24,750			24,750
Capital Contributed in Excess of Par		—			—			907,956,954			907,956,954			—			—			899,506,128			899,506,128
Restricted Stock		—			—			(15,193,374	)		(15,193,374	)		—			—			(7,736,812	)		(7,736,812	)
Accumulated Other Comprehensive Loss		—			—			(6,960,974	)		(6,960,974	)		—			—			(1,821,457	)		(1,821,457	)
Retained Earnings		—			—			51,209,595			51,209,595			—			—			78,221,233			78,221,233

TOTAL SHAREHOLDERS’ EQUITY		—			—			973,548,575			973,548,575			—			—			1,004,466,002			1,004,466,002

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,232,402,142		$	108,873,963		$	1,572,167,384		$	2,913,443,489		$	1,273,647,823		$	110,865,002		$	1,443,996,927		$	2,828,509,752


	June 30, 2004
	PREIT Wholly Owned			PREIT’s % of Partnerships (5)			Corporate			Combined TOTAL
ASSETS
Investments in Real Estate, at cost
Retail Properties ⁽¹⁾	$	2,457,579,069		$	136,339,792			—		$	2,593,918,861
Office/Industrial Properties		2,504,211			—			—			2,504,211
Land Held for Development		9,469,893			—			—			9,469,893
Construction In Progress		17,519,214			1,505,540			—			19,024,754

TOTAL INVESTMENTS IN REAL ESTATE		2,487,072,387			137,845,332			—			2,624,917,719
Accumulated Depreciation		(116,663,152	)		(32,847,127	)		—			(149,510,279	)

Net Real Estate		2,370,409,235			104,998,205			—			2,475,407,440

Other Assets:
Cash and Cash Equivalents		12,198,802			5,848,731			13,837,979			31,885,512
Rents and Other Receivables		22,604,437			11,069,706			989,276			34,663,419
Other Assets Held for Sale ⁽¹⁾		37,192,880			—			—			37,192,880
Intangible Assets ⁽²⁾		159,033,808			—			12,085,313			171,119,121
Deferred Costs, Prepaid Taxes & Exp. & Other Assets		34,774,326			7,583,542			18,785,165			61,143,033

TOTAL OTHER ASSETS		265,804,253			24,501,979			45,697,733			336,003,965

TOTAL ASSETS		2,636,213,488			129,500,184			45,697,733			2,811,411,405

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable		1,201,777,962			108,594,598			—			1,310,372,560
Mortgage Debt Premium ⁽³⁾		65,775,443			—						65,775,443
Bank Loans Payable		—			—			219,000,000			219,000,000
Liabilities Related to Assets Held for Sale		4,269,119						—			4,269,119
Other Liabilities ⁽⁴⁾		44,865,827			3,647,421			26,290,223			74,803,471

TOTAL LIABILITIES		1,316,688,351			112,242,019			245,290,223			1,674,220,593

Minority Interest		4,247,705			—			129,841,319			134,089,024

Shareholders’ Equity:
Shares of Beneficial Interest at $1 Par		—			—			35,938,305			35,938,305
Preferred Shares at $0.01 Par		—			—			24,750			24,750
Capital Contributed in Excess of Par		—			—			887,921,188			887,921,188
Restricted Stock		—			—			(9,618,821	)		(9,618,821	)
Accumulated Other Comprehensive Loss		—			—			(1,886,164	)		(1,886,164	)
Retained Earnings		—			—			90,722,530			90,722,530

TOTAL SHAREHOLDERS’ EQUITY		—			—			1,003,101,788			1,003,101,788

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,320,936,056		$	112,242,019		$	1,378,233,330		$	2,811,411,405

(1)

Investment in real estate as of June 30, 2005, December 31, 2004 and June 30, 2004 includes $12,185,030, $10,612,277 and $98,836,994, 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 represent 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 33 to 36.

PAGE 5

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

BALANCE SHEET ⁽¹⁾

(Property Type)


	June 30, 2005																		December 31, 2004
	Malls			Power and Strip Centers			Total Retail			Other Properties			Corporate			Combined TOTAL			Malls			Power and Strip Centers			Total Retail			Other Properties			Corporate			Combined TOTAL
ASSETS
Investments in Real Estate, at cost ⁽²⁾	$	2,457,982,077		$	302,037,930		$	2,760,020,007		$	49,324,463		$	—		$	2,809,344,470		$	2,336,629,574		$	313,078,795		$	2,649,708,369		$	25,861,672		$	—		$	2,675,570,041

Accumulated Depreciation		(170,226,005	)		(50,565,620	)		(220,791,625	)		(2,139,471	)		—			(222,931,096	)		(135,017,071	)		(47,764,970	)		(182,782,041	)		(2,126,931	)		—			(184,908,972	)

Net Real Estate		2,287,756,072			251,472,310			2,539,228,382			47,184,992			—			2,586,413,374			2,201,612,503			265,313,825			2,466,926,328			23,734,741			—			2,490,661,069

Other Assets:
Cash		10,994,801			3,668,597			14,663,398			—			15,644,900			30,308,298			25,818,936			4,590,129			30,409,065			—			15,243,658			45,652,723
Other Assets Held for Sal		7,405,622			—			7,405,622			46,728			—			7,452,350			6,837,914			—			6,837,914			(2,624	)		—			6,835,290
Intangible Assets ⁽³⁾		162,330,922			—			162,330,922			—			12,045,312			174,376,234			159,804,366			—			159,804,366			—			12,045,312			171,849,678
Other Assets, Net ⁽⁴⁾		56,450,384			23,955,889			80,406,273			11,256,819			23,230,141			114,893,233			52,672,487			23,813,146			76,485,633			12,552,018			24,473,341			113,510,992

Total Other Assets		237,181,729			27,624,486			264,806,215			11,303,547			50,920,353			327,030,115			245,133,703			28,403,275			273,536,978			12,549,394			51,762,311			337,848,683

TOTAL ASSETS		2,524,937,801			279,096,796			2,804,034,597			58,488,539			50,920,353			2,913,443,489			2,446,746,206			293,717,100			2,740,463,306			36,284,135			51,762,311			2,828,509,752

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities:
Mortgage Notes Payable		1,144,956,407			90,862,402			1,235,818,809			—			—			1,235,818,809			1,165,736,877			104,255,499			1,269,992,376			—			—			1,269,992,376
Mortgage Debt Premium ⁽⁵⁾		48,007,802			1,155,124			49,162,926			—						49,162,926			54,794,532			1,340,092			56,134,624			—						56,134,624
Bank Loans Payable		—			—			—			—			431,000,000			431,000,000									—			—			271,000,000			271,000,000
Liabilities Related to Assets Held for Sale		911,073			—			911,073			412,216			—			1,323,289			1,156,442			—			1,156,442			7,768			—			1,164,210
Other Liabilities ⁽⁶⁾		43,289,074			3,374,722			46,663,796			4,998,679			30,836,251			82,498,726			44,391,004			5,723,480			50,114,484			3,522,139			40,147,000			93,783,623

TOTAL LIABILITIES		1,237,164,356			95,392,248			1,332,556,604			5,410,895			461,836,251			1,799,803,750			1,266,078,855			111,319,071			1,377,397,926			3,529,907			311,147,000			1,692,074,833

Minority Interest		3,308,606						3,308,606			—			136,782,558			140,091,164			3,584,992						3,584,992			—			128,383,925			131,968,917

Shareholders’ Equity:
Shares of Beneficial Interest at $1 Par		—			—			—			—			36,511,624			36,511,624			—			—			—			—			36,272,160			36,272,160
Preferred Shares at $0.01 Par		—			—			—			—			24,750			24,750			—			—			—			—			24,750			24,750
Capital Contributed in Excess of Par		—			—			—			—			907,956,954			907,956,954			—			—			—			—			899,506,128			899,506,128
Restricted Stock		—			—			—			—			(15,193,374	)		(15,193,374	)		—			—			—			—			(7,736,812	)		(7,736,812	)
Accumulated Other Comprehensive Loss		—			—			—			—			(6,960,974	)		(6,960,974	)		—			—			—			—			(1,821,457	)		(1,821,457	)
Retained Earnings		—			—			—			—			51,209,595			51,209,595			—			—			—			—			78,221,233			78,221,233

TOTAL SHAREHOLDERS’ EQUITY		—			—			—			—			973,548,575			973,548,575			—			—			—			—			1,004,466,002			1,004,466,002

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,240,472,962		$	95,392,248		$	1,335,865,210		$	5,410,895		$	1,572,167,384		$	2,913,443,489		$	1,269,663,847		$	111,319,071		$	1,380,982,918		$	3,529,907		$	1,443,996,927		$	2,828,509,752


	June 30, 2004
	Malls		Power and Strip Centers			Total Retail			Other Properties			Corporate			Combined TOTAL
ASSETS
Investments in Real Estate, at cost ⁽²⁾	$	2,276,713,325	$	317,205,536		$	2,593,918,861		$	30,998,858		$	—		$	2,624,917,719

Accumulated Depreciation		(103,713,678)		(43,694,750	)		(147,408,428	)		(2,101,851	)		—			(149,510,279	)

Net Real Estate		2,172,999,647		273,510,786			2,446,510,433			28,897,007			—			2,475,407,440

Other Assets:
Cash		12,854,133		5,193,400			18,047,533						13,837,979			31,885,512
Other Assets Held for Sal		37,190,718					37,190,718			2,162			—			37,192,880
Intangible Assets ⁽³⁾		159,033,808					159,033,808						12,085,313			171,119,121
Other Assets, Net ⁽⁴⁾		40,001,278		24,188,926			64,190,204			11,841,807			19,774,441			95,806,452

Total Other Assets		249,079,937		29,382,326			278,462,263			11,843,969			45,697,733			336,003,965

TOTAL ASSETS		2,422,079,584		302,893,112			2,724,972,696			40,740,976			45,697,733			2,811,411,405

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities:
Mortgage Notes Payable		1,221,806,912		88,565,648			1,310,372,560			—			—			1,310,372,560
Mortgage Debt Premium ⁽⁵⁾		65,775,443		—			65,775,443			—						65,775,443
Bank Loans Payable							—			—			219,000,000			219,000,000
Liabilities Related to Assets Held for Sale		4,261,351		—			4,261,351			7,768			—			4,269,119
Other Liabilities ⁽⁶⁾		38,911,155		5,131,022			44,042,177			4,471,071			26,290,223			74,803,471

TOTAL LIABILITIES		1,330,754,861		93,696,670			1,424,451,531			4,478,839			245,290,223			1,674,220,593

Minority Interest		4,247,705					4,247,705			—			129,841,319			117,383,287

Shareholders’ Equity:
Shares of Beneficial Interest at $1 Par		—		—			—			—			35,938,305			35,938,305
Preferred Shares at $0.01 Par		—		—			—			—			24,750			24,750
Capital Contributed in Excess of Par		—		—			—			—			887,921,188			887,921,188
Restricted Stock		—		—			—			—			(9,618,821	)		(9,618,821	)
Accumulated Other Comprehensive Loss		—		—			—			—			(1,886,164	)		(1,886,164	)
Retained Earnings		—		—			—			—			90,722,530			90,722,530

TOTAL SHAREHOLDERS’ EQUITY		—		—			—			—			1,003,101,788			1,003,101,788

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,335,002,566	$	93,696,670		$	1,428,699,236		$	4,478,839		$	1,378,233,330		$	2,811,411,405

⁽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 Company’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 33 to 36.

PAGE 6

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

INCOME STATEMENT ⁽¹⁾

QUARTERLY COMPARISON

(Wholly Owned vs. Partnerships)


	Q2 05 (3 months ended 6/30/05)
	Wholly Owned					Partnerships					Corporate					Combined TOTAL			TOTAL% CHANGE
Base Rents	$	66,562,461				$	5,117,700				$	—					71,680,161		1.0	%
Straight-Lining of Base Rents		980,279					15,963					—					996,242		-18.2	%
Percentage Rents		2,221,600					39,476					—					2,261,076		74.5	%
Expense Reimbursables		30,561,297					1,739,809					—					32,301,106		1.6	%
Lease Termination		583,803					33,776					—					617,579		-37.2	%
Other Real Estate Revenues		2,309,048					116,006					—					2,425,054		-1.2	%

TOTAL REAL ESTATE REVENUES		103,218,488		94	%		7,062,730		6	%		—		0	%		110,281,218		1.5	%

Operating and Maintenance		(28,636,292	)				(1,408,065	)				—					(30,044,357	)	-0.1	%
Real Estate Taxes		(10,130,732	)				(617,021	)				—					(10,747,753	)	2.3	%

TOTAL PROPERTY OPERATING EXPENSES		(38,767,024	)	95	%		(2,025,086	)	5	%		—		0	%		(40,792,110	)	0.5	%

NET OPERATING INCOME		64,451,464		93	%		5,037,644		7	%		—		0	%		69,489,108		2.0	%

Management Company Revenue		—					—					1,311,720					1,311,720		-24.5	%
Interest and Other Income		—					—					254,213					254,213		-41.2	%
General & Administrative:
Corporate Payroll and Benefits		—					—					(6,602,799	)				(6,602,799	)	-8.6	%
Other G&A Expenses		—					—					(4,041,254	)				(4,041,254	)	-6.4	%

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)		64,451,464		107	%		5,037,644		8	%		(9,078,120	)	-15	%		60,410,988		2.8	%

Interest Expense ⁽²⁾		(16,222,521	)				(2,036,909	)				(4,173,465	)				(22,432,895	)	7.8	%
Depreciation & Amortization		(27,088,696	)				(1,032,945	)				(394,640	)				(28,516,281	)	13.6	%

OTHER EXPENSES		(43,311,217	)				(3,069,854	)				(4,568,105	)				(50,949,176	)	11.0	%

Gains on Sales of Interests in Real Estate		567,886					68,080					—					635,966		N/A

Income before Minority Interest		21,708,133					2,035,870					(13,646,225	)				10,097,778		-21.2	%

Minority Interest in Properties		(40,172	)				—					—					(40,172	)	-73.9	%
Minority Interest of O.P. Unitholders		—					—					(1,113,584	)				(1,113,584	)	6.5	%

Income from Operations		21,667,961					2,035,870					(14,759,809	)				8,944,022		-23.0	%

Discontinued Operations:
Minority Interest of O.P. Unitholders		—					—					(47,276	)				(47,276	)	N/A
Adjustments to Gains on Disposition of Discontinued Operations		—					—					—					—		N/A

TOTAL DISCONTINUED OPERATIONS		—					—					(47,276	)				(47,276	)	N/A

NET INCOME	$	21,667,961		244	%	$	2,035,870		23	%	$	(14,807,085	)	-166	%	$	8,896,746		-21.9	%


	Q2 04 (3 months ended 6/30/04)
	Wholly Owned					Partnerships					Corporate					Combined TOTAL
Base Rents	$	65,645,467				$	5,295,006				$	—				$	70,940,473
Straight-Lining of Base Rents		1,206,595					11,480					—					1,218,075
Percentage Rents		1,397,974					(102,372	)				—					1,295,602
Expense Reimbursables		30,076,550					1,716,739					—					31,793,289
Lease Termination		983,379					—					—					983,379
Other Real Estate Revenues		2,200,737					254,498					—					2,455,235

TOTAL REAL ESTATE REVENUES		101,510,702		93	%		7,175,351		7	%		—		0	%		108,686,053

Operating and Maintenance		(28,368,973	)				(1,700,315	)				—					(30,069,288	)
Real Estate Taxes		(9,990,778	)				(513,124	)				—					(10,503,902	)

TOTAL PROPERTY OPERATING EXPENSES		(38,359,751	)	95	%		(2,213,439	)	5	%		—		0	%		(40,573,190	)

NET OPERATING INCOME		63,150,951		93	%		4,961,912		7	%		—		0	%		68,112,863

Management Company Revenue		—					—					1,736,239					1,736,239
Interest and Other Income		—					—					432,403					432,403
General & Administrative:
Corporate Payroll and Benefits		—					—					(7,225,740	)				(7,225,740	)
Other G&A Expenses		—					—					(4,315,831	)				(4,315,831	)

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)		63,150,951		108	%		4,961,912		8	%		(9,372,929	)	-16	%		58,739,934

Interest Expense ⁽²⁾		(17,060,967	)				(2,171,992	)				(1,576,215	)				(20,809,174	)
Depreciation & Amortization		(23,733,238	)				(1,141,390	)				(236,269	)				(25,110,897	)

OTHER EXPENSES		(40,794,205	)				(3,313,382	)				(1,812,484	)				(45,920,071	)

Gains on Sales of Interests in Real Estate		—					—					—					—

Income before Minority Interest		22,356,746					1,648,530					(11,185,413	)				12,819,863

Minority Interest in Properties		(153,880	)				—					—					(153,880	)
Minority Interest of O.P. Unitholders		—					—					(1,045,637	)				(1,045,637	)

Income from Operations		22,202,866					1,648,530					(12,231,050	)				11,620,346

Discontinued Operations:
Minority Interest of O.P. Unitholders		—					—					(228,602	)				(228,602	)
Adjustments to Gains on Disposition of Discontinued Operations		—					—										—

TOTAL DISCONTINUED OPERATIONS		—					—					(228,602	)				(228,602	)

NET INCOME	$	22,202,866		195	%	$	1,648,530		14	%	$	(12,459,652	)	-109	%	$	11,391,744

⁽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 $505,000 is not included in the quarter ended 6/30/05 and $425,000 is not included in the quarter ended 6/30/04.

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 33 to 36.

PAGE 7

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

INCOME STATEMENT ⁽¹⁾

QUARTERLY COMPARISON

(Line of Business)


	Q2 05 (3 months ended 6/30/05)
	RETAIL					OTHER PROPERTIES					CORPORATE					Combined TOTAL			*TOTAL%* *CHANGE*
Base Rents	$	71,531,586				$	148,575				$	—				$	71,680,161		1.0	%
Straight-Lining of Base Rents		996,242					—					—					996,242		-18.2	%
Percentage Rents		2,261,076					—					—					2,261,076		74.5	%
Expense Reimbursables		32,288,671					12,435					—					32,301,106		1.6	%
Lease Termination		617,579					—					—					617,579		-37.2	%
Other Real Estate Revenues		2,425,054					—					—					2,425,054		-1.2	%

TOTAL REAL ESTATE REVENUES		110,120,208		100	%		161,010		0	%		—		—			110,281,218		1.5	%

Operating and Maintenance		(30,036,011	)				(8,346	)				—					(30,044,357	)	-0.1	%
Real Estate Taxes		(10,736,778	)				(10,975	)				—					(10,747,753	)	2.3	%

TOTAL PROPERTY OPERATING EXPENSES		(40,772,789	)	100	%		(19,321	)	0	%		—		—			(40,792,110	)	0.5	%

NET OPERATING INCOME		69,347,419		100	%		141,689		0	%		—		—			69,489,108		2.0	%

Management Company Revenue		—					—					1,311,720					1,311,720		-24.5	%
Interest and Other Income		—					—					254,213					254,213		-41.2	%
General and Administrative:

Corporate Payroll and Benefits		—					—					(6,602,799	)				(6,602,799	)	-8.6	%
Other General & Administrative		—					—					(4,041,254	)				(4,041,254	)	-6.4	%

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)		69,347,419		115	%		141,689		0	%		(9,078,120	)	-15	%		60,410,988		2.8	%

Interest Expense ⁽²⁾		(18,259,430	)				—					(4,173,465	)				(22,432,895	)	7.8	%
Depreciation & Amortization		(28,121,641	)				—					(394,640	)				(28,516,281	)	13.6	%

OTHER EXPENSES		(46,381,071	)				—					(4,568,105	)				(50,949,176	)	11.0	%

Gains on Sales of Interests in Real Estate		635,966					—					—					635,966		N/A

Income before Minority Interest		23,602,314					141,689					(13,646,225	)				10,097,778		-21.2	%

Minority Interest in Properties		(40,172	)				—					—					(40,172	)	-73.9	%

Minority Interest of O.P. Unitholders		—					—					(1,113,584	)				(1,113,584	)	6.5	%

Income from Operations		23,562,142					141,689					(14,759,809	)				8,944,022		-23.0	%

Discontinued Operations:
Minority Interest of O.P. Unitholders		—					—					(47,276	)				(47,276	)	N/A
Adjustments to Gains on Disposition of Discontinued Operations		—					—					—					—		N/A

TOTAL DISCONTINUED OPERATIONS		—					—					(47,276	)				(47,276	)	N/A

NET INCOME	$	23,562,142		265	%	$	141,689		2	%	$	(14,807,085	)	-166	%	$	8,896,746		-21.9	%


	Q2 04 (3 months ended 6/30/04)
	RETAIL					OTHER PROPERTIES					CORPORATE					Combined TOTAL
Base Rents	$	70,855,317				$	85,156				$	—				$	70,940,473
Straight-Lining of Base Rents		1,218,075					—					—					1,218,075
Percentage Rents		1,295,602					—					—					1,295,602
Expense Reimbursables		31,781,614					11,675					—					31,793,289
Lease Termination		983,379					—					—					983,379
Other Real Estate Revenues		2,455,235					—					—					2,455,235

TOTAL REAL ESTATE REVENUES		108,589,222		100	%		96,831		0	%		—		—			108,686,053

Operating and Maintenance		(30,066,063	)				(3,225	)				—					(30,069,288	)
Real Estate Taxes		(10,494,852	)				(9,050	)				—					(10,503,902	)

TOTAL PROPERTY OPERATING EXPENSES		(40,560,915	)	100	%		(12,275	)	0	%		—		—			(40,573,190	)

NET OPERATING INCOME		68,028,307		100	%		84,556		0	%		—		—			68,112,863

Management Company Revenue		—					—					1,736,239					1,736,239
Interest and Other Income		—					—					432,403					432,403
General and Administrative:												—					—

Corporate Payroll and Benefits		—					—					(7,225,740	)				(7,225,740	)
Other General & Administrative		—					—					(4,315,831	)				(4,315,831	)

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)		68,028,307		116	%		84,556		0	%		(9,372,929	)	-16	%		58,739,934

Interest Expense ⁽²⁾		(19,232,959	)				—					(1,576,215	)				(20,809,174	)
Depreciation & Amortization		(24,862,088	)				(12,540	)				(236,269	)				(25,110,897	)

OTHER EXPENSES		(44,095,047	)				(12,540	)				(1,812,484	)				(45,920,071	)

Gains on Sales of Interests in Real Estate												—					—

Income before Minority Interest		23,933,260					72,016					(11,185,413	)				12,819,863

Minority Interest in Properties		(153,880	)				—					—					(153,880	)

Minority Interest of O.P. Unitholders		—					—					(1,045,637	)				(1,045,637	)

Income from Operations		23,779,380					72,016					(12,231,050	)				11,620,346

Discontinued Operations:
Minority Interest of O.P. Unitholders		—					—					(228,602	)				(228,602	)
Adjustments to Gains on Disposition of Discontinued Operations		—					—					—					—

TOTAL DISCONTINUED OPERATIONS		—					—					(228,602	)				(228,602	)

NET INCOME	$	23,779,380		209	%	$	72,016		1	%	$	(12,459,652	)	-109	%	$	11,391,744

(1)

(2)	Capitalized interest expense of $505,000 is not included in the quarter ended 6/30/05 and $425,000 is not included in the quarter ended 6/30/04.

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 33 to 36.

PAGE 8

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

RETAIL INCOME STATEMENT ⁽¹⁾

QUARTERLY COMPARISON


	Q2 05 (3 months ended 6/30/05)																			Q2 04 (3 months ended 6/30/04)
	Combined TOTAL			Wholly Owned					Partnerships					*% Change* *TOTAL*		*% Change* *Wholly Owned*		*% Change* *Partnerships*		Combined TOTAL			Wholly Owned					Partnerships
Base Rents	$	71,531,586		$	66,413,886				$	5,117,700				1.0	%	1.3	%	-3.3	%	$	70,855,317		$	65,560,311				$	5,295,006
Straight-Lining of Base Rents		996,242			980,279					15,963				-18.2	%	-18.8	%	39.1	%		1,218,075			1,206,595					11,480
Percentage Rents		2,261,076			2,221,600					39,476				74.5	%	58.9	%	-138.6	%		1,295,602			1,397,974					(102,372	)
Expense Reimbursables		32,288,671			30,548,862					1,739,809				1.6	%	1.6	%	1.3	%		31,781,614			30,064,875					1,716,739
Lease Termination and Other Income		617,579			583,803					33,776				-37.2	%	-40.6	%	N/A			983,379			983,379					—
Other Real Estate Revenues		2,425,054			2,309,048					116,006				-1.2	%	4.9	%	-54.4	%		2,455,235			2,200,737					254,498

TOTAL REAL ESTATE REVENUES		110,120,208			103,057,478		94	%		7,062,730		6	%	1.4	%	1.6	%	-1.6	%		108,589,222			101,413,871		93	%		7,175,351		7	%

Operating and Maintenance		(30,036,011	)		(28,627,946	)				(1,408,065	)			-0.1	%	0.9	%	-17.2	%		(30,066,063	)		(28,365,748	)				(1,700,315	)
Real Estate Taxes		(10,736,778	)		(10,119,757	)				(617,021	)			2.3	%	1.4	%	20.2	%		(10,494,852	)		(9,981,728	)				(513,124	)

TOTAL PROPERTY OPERATING EXPENSES		(40,772,789	)		(38,747,703	)	95	%		(2,025,086	)	5	%	0.5	%	1.0	%	-8.5	%		(40,560,915	)		(38,347,476	)	95	%		(2,213,439	)	5	%

NET OPERATING INCOME		69,347,419			64,309,775		93	%		5,037,644		7	%	1.9	%	2.0	%	1.5	%		68,028,307			63,066,395		93	%		4,961,912		7	%

Interest Expense		(18,259,430	)		(16,222,521	)				(2,036,909	)			-5.1	%	-4.9	%	-6.2	%		(19,232,959	)		(17,060,967	)				(2,171,992	)
Depreciation & Amortization		(28,121,641	)		(27,088,696	)				(1,032,945	)			13.1	%	14.2	%	-9.5	%		(24,862,088	)		(23,720,698	)				(1,141,390	)

OTHER EXPENSES		(46,381,071	)		(43,311,217	)				(3,069,854	)			5.2	%	6.2	%	-7.3	%		(44,095,047	)		(40,781,665	)				(3,313,382	)

Gains on sales of int. in R.E.		635,966			567,886					68,080				N/A		N/A		N/A			—			—					—

Income before Minority Int.		23,602,314			21,566,444					2,035,870				-1.4	%	-3.2	%	23.5	%		23,933,260			22,284,730					1,648,530

Minority Interest in Properties		(40,172	)		(40,172	)								-73.9	%	-73.9	%	N/A			(153,880	)		(153,880	)				—

NET INCOME	$	23,562,142		$	21,526,272		91	%	$	2,035,870		9	%	-0.9	%	-2.7	%	23.5	%	$	23,779,380		$	22,130,850		93	%	$	1,648,530		7	%

SAME STORE COMPARISON


	Q2 05 (3 months ended 6/30/05)																				Q2 04 (3 months ended 6/30/04)
	Combined TOTAL			SAME					NEW					DIVEST					*% Change* *Same Store*		Combined TOTAL			SAME					NEW					DIVEST
Base Rents	$	71,531,586		$	64,798,782				$	6,624,677				$	108,127				-1.5	%	$	70,855,317		$	65,791,079				$	658,185				$	4,406,053
Straight-Lining of Base Rents		996,242			773,588					222,654					—				-33.3	%		1,218,075			1,160,353					—					57,722
Percentage Rents		2,261,076			2,008,783					201,788					50,505				63.7	%		1,295,602			1,227,127					—					68,475
Expense Reimbursables		32,288,671			29,604,887					2,681,034					2,750				-1.4	%		31,781,614			30,025,219					177,232					1,579,163
Lease Termination		617,579			616,079					1,500					—				-37.4	%		983,379			983,379					—					—
Other Real Estate Revenues		2,425,054			2,102,572					322,482					—				-10.3	%		2,455,235			2,343,117					8,441					103,677

TOTAL REAL ESTATE REVENUES		110,120,208			99,904,691		91	%		10,054,135		9	%		161,382		0	%	-1.6	%		108,589,222			101,530,274		93	%		843,858		1	%		6,215,090		6	%

Operating and Maintenance		(30,036,011	)		(26,888,533	)				(3,147,478	)				—				-0.4	%		(30,066,063	)		(26,989,154	)				(273,754	)				(2,803,155	)
Real Estate Taxes		(10,736,778	)		(9,875,144	)				(848,910	)				(12,724	)			0.1	%		(10,494,852	)		(9,868,443	)				(64,697	)				(561,712	)

TOTAL PROPERTY OPERATING EXPENSES		(40,772,789	)		(36,763,677	)	90	%		(3,996,388	)	10	%		(12,724	)	0	%	-0.3	%		(40,560,915	)		(36,857,597	)	91	%		(338,451	)	1	%		(3,364,867	)	8	%

NET OPERATING INCOME		69,347,419			63,141,014		91	%		6,057,747		9	%		148,658		0	%	-2.4	%		68,028,307			64,672,677		95	%		505,407		1	%		2,850,223		4	%

Interest Expense		(18,259,430	)		(17,511,173	)				(668,604	)				(79,653	)			-5.1	%		(19,232,959	)		(18,449,638	)				-					(783,321	)
Depreciation & Amortization		(28,121,641	)		(25,288,049	)				(2,788,329	)				(45,263	)			3.0	%		(24,862,088	)		(24,546,465	)				(191,297	)				(124,326	)

OTHER EXPENSES		(46,381,071	)		(42,799,222	)				(3,456,933	)				(124,916	)			-0.5	%		(44,095,047	)		(42,996,103	)				(191,297	)				(907,647	)

Gains on sales of int. in R.E.		635,966			—					—					635,966				N/A			—			—					—					—

Income before Minority Int.		23,602,314			20,341,792					2,600,814					659,708				-6.2	%		23,933,260			21,676,574					314,110					1,942,576

Minority Interest in Properties		(40,172	)		(40,172	)				—					—				-72.7	%		(153,880	)		(147,226	)				—					(6,654	)

NET INCOME	$	23,562,142		$	20,301,620		86	%	$	2,600,814		11	%	$	659,708		3	%	-5.7	%	$	23,779,380		$	21,529,348		91	%	$	314,110		1	%	$	1,935,922		8	%

⁽¹⁾

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 33 to 36.

PAGE 9

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

RETAIL INCOME STATEMENT⁽¹⁾

QUARTERLY COMPARISON

(Property Subtype)


	Q2 05 (3 months ended 6/30/05)
	Combined TOTAL			Enclosed Mall					Power Center					Strip Center					% Change TOTAL		% Change Enclosed Mall		% Change Power Center		% Change Strip Center
Base Rents	$	71,531,586		$	63,827,214				$	6,384,805				$	1,319,567				1.0	%	2.0	%	-5.0	%	-17.1	%
Straight-Lining of Base Rents		996,242			838,039					148,861					9,342				-18.2	%	-24.1	%	31.1	%	N/A
Percentage Rents		2,261,076			2,231,066					30,010					—				74.5	%	76.0	%	7.3	%	N/A
Expense Reimbursables		32,288,671			30,665,215					1,221,328					402,128				1.6	%	2.0	%	-10.4	%	11.8	%
Lease Termination and Other Income		617,579			586,920					39,318					(8,659	)			-37.2	%	-40.3	%	N/A		N/A
Other Real Estate Revenues		2,425,054			2,397,862					25,679					1,513				-1.2	%	-0.8	%	-25.6	%	-60.9	%

TOTAL REAL ESTATE REVENUES		110,120,208			100,546,316		91	%		7,850,001		7	%		1,723,891		2	%	1.4	%	2.2	%	-4.9	%	-11.8	%

Operating and Maintenance		(30,036,011	)		(29,201,232	)				(537,296	)				(297,483	)			-0.1	%	1.3	%	-39.2	%	-19.3	%
Real Estate Taxes		(10,736,778	)		(9,733,001	)				(793,370	)				(210,407	)			2.3	%	2.8	%	-4.2	%	4.8	%

TOTAL PROPERTY OPERATING EXPENSES		(40,772,789	)		(38,934,233	)	95	%		(1,330,666	)	3	%		(507,890	)	1	%	0.5	%	1.7	%	-22.2	%	-10.8	%

NET OPERATING INCOME		69,347,419			61,612,083		89	%		6,519,335		9	%		1,216,001		2	%	1.9	%	2.5	%	-0.4	%	-12.2	%

Interest Expense		(18,259,430	)		(16,504,123	)				(1,720,057	)				(35,250	)			-5.1	%	-5.5	%	-0.3	%	-3.4	%
Depreciation & Amortization		(28,121,641	)		(25,626,570	)				(1,996,798	)				(498,273	)			13.1	%	15.6	%	6.6	%	-39.6	%

OTHER EXPENSES		(46,381,071	)		(42,130,693	)				(3,716,855	)				(533,523	)			5.2	%	6.3	%	3.3	%	-38.0	%

Gains on sales of int. in R.E.		635,966			—					567,886					68,080				N/A		N/A		N/A		N/A

Income before Minority Int.		23,602,314			19,481,390					3,370,366					750,558				-1.4	%	-4.8	%	14.4	%	43.2	%

Minority Interest in Properties		(40,172	)		(40,172	)				—					—				-73.9	%	-73.9	%	N/A		N/A

NET INCOME	$	23,562,142		$	19,441,218		83	%	$	3,370,366		14	%	$	750,558		3	%	-0.9	%	-4.3	%	14.4	%	43.2	%


	Q2 04 (3 months ended 6/30/04)
	Combined TOTAL			Enclosed Mall					Power Center					Strip Center
Base Rents	$	70,855,317		$	62,546,597				$	6,717,821				$	1,590,899
Straight-Lining of Base Rents		1,218,075			1,104,774					113,520					(219	)
Percentage Rents		1,295,602			1,267,634					27,968					—
Expense Reimbursables		31,781,614			30,058,873					1,362,911					359,830
Lease Termination and Other Income		983,379			983,379					—					—
Other Real Estate Revenues		2,455,235			2,416,869					34,495					3,871

TOTAL REAL ESTATE REVENUES		108,589,222			98,378,126		91	%		8,256,715		8	%		1,954,381		2	%

Operating and Maintenance		(30,066,063	)		(28,813,920	)				(883,391	)				(368,752	)
Real Estate Taxes		(10,494,852	)		(9,466,259	)				(827,858	)				(200,735	)

TOTAL PROPERTY OPERATING EXPENSES		(40,560,915	)		(38,280,179	)	94	%		(1,711,249	)	4	%		(569,487	)	1	%

NET OPERATING INCOME		68,028,307			60,097,947		88	%		6,545,466		10	%		1,384,894		2	%

Interest Expense		(19,232,959	)		(17,470,567	)				(1,725,898	)				(36,494	)
Depreciation & Amortization		(24,862,088	)		(22,164,641	)				(1,873,166	)				(824,281	)

OTHER EXPENSES		(44,095,047	)		(39,635,208	)				(3,599,064	)				(860,775	)

Gains on sales of int. in R.E.		—			—					—					—

Income before Minority Int.		23,933,260			20,462,739					2,946,402					524,119

Minority Interest in Properties		(153,880	)		(153,880	)				—					—

NET INCOME	$	23,779,380		$	20,308,859		85	%	$	2,946,402		13	%	$	524,119		2	%

SAME STORE COMPARISON


	Q2 05 (3 months ended 6/30/05)
	Combined TOTAL			Enclosed Mall					Power Center					Strip Center					% Change TOTAL ⁽¹)		% Change Enclosed Mall		% Change Power Center		% Change Strip Center
Base Rents	$	64,798,782		$	57,201,937				$	6,277,278				$	1,319,567				-1.5	%	-1.3	%	-2.0	%	-9.4	%
Straight-Lining of Base Rents		773,588			615,385					148,861					9,342				-33.3	%	-41.1	%	31.1	%	462.8	%
Percentage Rents		2,008,783			1,978,773					30,010					—				63.7	%	65.0	%	7.3	%	N/A
Expense Reimbursables		29,604,887			27,984,181					1,218,578					402,128				-1.4	%	-1.3	%	-10.4	%	23.9	%
Lease Termination		616,079			585,420					39,318					(8,659	)			-37.4	%	-40.5	%	N/A		N/A
Other Real Estate Revenues		2,102,572			2,075,380					25,679					1,513				-10.3	%	-10.0	%	-25.6	%	-60.9	%

TOTAL REAL ESTATE REVENUES		99,904,691			90,441,076		91	%		7,739,724		8	%		1,723,891		2	%	-1.6	%	-1.5	%	-2.5	%	-3.5	%

Operating and Maintenance		26,888,533			26,053,754					537,296					297,483				-0.4	%	1.0	%	-39.2	%	-5.7	%
Real Estate Taxes		9,875,144			8,884,091					780,646					210,407				0.1	%	0.3	%	-5.7	%	16.2	%

TOTAL PROPERTY OPERATING EXPENSES		36,763,677			34,937,845		95	%		1,317,942		4	%		507,890		1	%	-0.3	%	0.8	%	-23.0	%	2.3	%

NET OPERATING INCOME		63,141,014			55,503,231		88	%		6,421,782		10	%		1,216,001		2	%	-2.4	%	-2.9	%	3.1	%	-5.8	%

Interest Expense		(17,511,173	)		(15,835,519	)				(1,640,404	)				(35,250	)			-5.1	%	-6.4	%	9.8	%	-3.4	%
Depreciation & Amortization		(25,288,049	)		(22,838,241	)				(1,951,535	)				(498,273	)			3.0	%	3.9	%	8.1	%	-35.1	%

OTHER EXPENSES		(42,799,222	)		(38,673,760	)				(3,591,939	)				(533,523	)			-0.5	%	-0.6	%	8.8	%	-33.7	%

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

Income before Minority Int.		20,341,792			16,829,471					2,829,843					682,478				-6.2	%	-7.8	%	-3.4	%	40.4	%

Minority Interest in Properties		(40,172	)		(40,172	)				—					—				-72.7	%	-72.7	%	N/A		N/A

NET INCOME	$	20,301,620		$	16,789,299		83	%	$	2,829,843		14	%	$	682,478		3	%	-5.7	%	-7.3	%	-3.4	%	40.4	%


	Q204 (3 months ended 6/30/04)
	Combined TOTAL			Enclosed Mall					Power Center					Strip Center
Base Rents	$	65,791,079		$	57,928,687				$	6,405,321				$	1,457,071
Straight-Lining of Base Rents		1,160,353			1,045,173					113,520					1,660
Percentage Rents		1,227,127			1,199,159					27,968					—
Expense Reimbursables		30,025,219			28,340,616					1,360,161					324,442
Lease Termination		983,379			983,379					—					—
Other Real Estate Revenues		2,343,117			2,304,751					34,495					3,871

TOTAL REAL ESTATE REVENUES		101,530,274			91,801,765		90	%		7,941,465		8	%		1,787,044		2	%

Operating and Maintenance		26,989,154			25,790,411					883,316					315,427
Real Estate Taxes		9,868,443			8,859,552					827,858					181,033

TOTAL PROPERTY OPERATING EXPENSES		36,857,597			34,649,963		94	%		1,711,174		5	%		496,460		1	%

NET OPERATING INCOME		64,672,677			57,151,802		88	%		6,230,291		10	%		1,290,584		2	%

Interest Expense		(18,449,638	)		(16,918,496	)				(1,494,648	)				(36,494	)
Depreciation & Amortization		(24,546,465	)		(21,973,344	)				(1,805,272	)				(767,849	)

OTHER EXPENSES		(42,996,103	)		(38,891,840	)				(3,299,920	)				(804,343	)

Gains on sales of int. in R.E		—			—					—					—

Income before Minority Int.		21,676,574			18,259,962					2,930,371					486,241

Minority Interest in Properties		(147,226	)		(147,226	)				—					—

NET INCOME	$	21,529,348		$	18,112,736		84	%	$	2,930,371		14	%	$	486,241		2	%

⁽¹⁾

PAGE 10

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)


	Q2:6/30/05			% Change		Q2:6/30/04
FUNDS FROM OPERATIONS (FFO)⁽¹⁾

Net Income	$	8,896,746		-21.9	%	$	11,391,744
Dividends on Preferred Shares		(3,403,125	)	0.0	%		(3,403,125	)

Net Income available to common shareholders	$	5,493,621		-31.2	%	$	7,988,619

Minority Interest in Operating Partnership-Continuing Operations		1,113,584		6.5	%		1,045,637
Minority Interest in Operating Partnership-Discontinued Operations		47,276		-79.3	%		228,602

Gains on Sales of Interests in Real Estate		(635,966	)	N/A			—
Adjustments to Gains on Disposition of Discontinued Operations		—		N/A			—
Depreciation & Amortization: ⁽²⁾
Wholly Owned and Consolidated Partnerships		26,955,942		14.3	%		23,590,193
Unconsolidated Partnerships		1,032,945		-9.5	%		1,141,390
Discontinued Operations		—		N/A			12,540

FFO	$	34,007,402		0.0	%	$	34,006,981

Weighted Average Shares and O.P. Units Outstanding		40,711,402		2.9	%		39,545,664

Net Income per Share (diluted)	$	0.14		-33.3	%	$	0.21

FFO per Share	$	0.84		-2.9	%	$	0.86

FUNDS AVAILABLE FOR DISTRIBUTION
FFO	$	34,007,402		0.0	%	$	34,006,981
Adjustments:
Straight-Lining of Base Rents		(996,242	)	-18.2	%		(1,218,075	)
Recurring Capital Expenditures		(2,533,963	)	74.8	%		(1,449,365	)
Tenant Allowances		(4,666,764	)	390.8	%		(950,906	)
Capitalized Leasing Costs		(935,971	)	43.3	%		(653,232	)
Amortization of Debt Premium		(4,871,898	)	0.5	%		(4,848,163	)
Amortization of Above-and Below- Market Lease Intangibles		260,370		28.4	%		202,727

FAD	$	20,262,934		-19.2	%	$	25,089,967

Weighted Average Shares and O.P. Units Outstanding		40,711,402		2.9	%		39,545,664

FAD per Share	$	0.50		-21.6	%	$	0.63

PAYOUT RATIOS

Dividend per Common Share	$	0.57		5.6	%	$	0.54

Payout Ratio of Net Income per Share (diluted)		407.1	%	150.0	%		257.1	%

Payout Ratio of FFO		68.2	%	5.4	%		62.8	%

Payout Ratio of FAD		114.5	%	29.4	%		85.1	%

(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 11

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

KEY RATIOS


	Q2: 6/30/2005		Q2: 6/30/2004
Coverage Ratio ⁽¹⁾
Interest Coverage Ratio (EBITDA/Interest Expense)	2.69		2.82

Leverage Ratios ⁽¹⁾
Debt / Total Market Capitalization	45.2	%	51.4	%

Operating Ratios ⁽¹⁾
NOI/Real Estate Revenues	63.0	%	62.7	%

Return on Investment Ratios ⁽¹⁾
Total FFO/Equity Market Capitalization, net of preferred shares	1.7	%	2.5	%
NOI/Total Market Capitalization at Period End	1.8	%	2.2	%
NOI/Investment in Real Estate at Period End	2.5	%	2.6	%

Payout Ratios
FFO Payout Ratio (Dividend/FFO) per Share	68.2	%	62.8	%
FAD Payout Ratio (Dividend/FAD) per Share	114.5	%	85.1	%

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

PAGE 12

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

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
Retail Properties
Beaver Valley Mall		100	%	$	55,505,646		$	55,505,646		$	5,112,394	$	50,393,252	$	46,623,191	$	46,623,191
Capital City ⁽²⁾		100	%		83,297,384			83,297,384			3,433,369		79,864,015		58,180,952		52,500,308
Chambersburg Mall ⁽²⁾⁽³⁾		89	%		34,823,294			34,823,294			1,573,857		33,249,437		19,863,934		18,543,792
Cherry Hill Mall		100	%		208,077,669			208,077,669			10,761,270		197,316,399		71,445,421		70,518,700
Christiana Power I		100	%		39,949,871			39,949,871			5,996,996		33,952,875		—		—
Creekview		100	%		19,074,265			19,074,265			3,314,497		15,759,768		—		—
Crest Plaza Shopping Center		100	%		16,078,490			16,078,490			2,147,888		13,930,602		—		—
Crossroads Mall		100	%		31,889,001			31,889,001			1,753,653		30,135,348		13,885,160		13,296,454
Cumberland Mall		100	%		53,626,457			53,626,457			487,533		53,138,924		46,240,510 3,813,015		43,646,661 3,813,015
Dartmouth Mall		100	%		57,826,496			57,826,496			12,430,491		45,396,005		67,973,148		67,973,148
Echelon Mall		100	%		18,752,432			18,752,432			2,490,547		16,261,885		—		—
Exton Square Mall		100	%		144,113,543			144,113,543			8,059,502		136,054,041		103,509,369		97,892,310
Festival at Exton		100	%		19,270,661			19,270,661			2,776,752		16,493,909		—		—
Francis Scott Key Mall ⁽³⁾		89	%		61,290,419			61,290,419			2,732,016		58,558,403		34,761,884		32,451,636
Gadsden Mall		100	%		49,857,543			49,857,543			338,374		49,519,169		—		—
Jacksonville Mall ⁽³⁾		100	%		66,855,421			66,855,421			3,150,664		63,704,757		26,816,311		25,034,119
Logan Valley Mall ⁽²⁾⁽³⁾		100	%		91,277,973			91,277,973			4,933,232		86,344,741		56,612,210		52,849,806
Lycoming Mall ⁽²⁾⁽³⁾		89	%		55,543,260			55,543,260			2,434,792		53,108,468		34,761,885		32,451,636
Magnolia Mall ⁽⁵⁾		100	%		64,679,181			64,679,181			10,195,280		54,483,901		19,386,093		19,386,093
Moorestown Mall		100	%		75,470,113			75,470,113			6,565,215		68,904,898		62,389,639		62,389,639
New River Valley Mall ⁽³⁾		89	%		30,406,378			30,406,378			1,397,949		29,008,429		16,884,344		15,762,223
Nittany Mall ⁽²⁾⁽³⁾		89	%		39,393,306			39,393,306			1,690,850		37,702,456		29,795,901		27,815,688
North Hanover Mall ⁽²⁾⁽³⁾		89	%		28,336,712			28,336,712			1,369,440		26,967,272		19,863,934		18,543,792
Northeast Tower Center ⁽³⁾		100	%		33,176,814			33,176,814			3,779,882		29,396,932		17,380,942		16,225,818
Orlando Fashion Square		100	%		108,763,810			108,763,810			1,629,403		107,134,407		—		—
Palmer Park Mall		100	%		33,231,642			33,231,642			7,134,124		26,097,518		17,500,193		17,500,193
Patrick Henry Mall ⁽³⁾		89	%		108,864,388			108,864,388			4,433,997		104,430,391		50,156,434		46,823,074
Paxton Towne Centre		100	%		53,618,645			53,618,645			6,824,228		46,794,417		—		—
Phillipsburg Mall ⁽³⁾		89	%		48,713,196			48,713,196			2,219,710		46,493,486		29,795,901		27,815,688
Plymouth Meeting Mall		100	%		79,817,315			79,817,315			5,094,526		74,722,789		—		—
Schuylkill Mall ^{(2) (4)}		100	%		8,108,358			8,108,358			—		8,108,358		17,113,872		17,113,872
South Blanding Village		100	%		9,504,950			9,504,950			3,495,005		6,009,945		—		—
South Mall ⁽²⁾⁽³⁾		89	%		26,995,259			26,995,259			1,244,220		25,751,039		14,897,950		13,907,844
The Commons at Magnolia		100	%		9,900,319			9,900,319			1,601,685		8,298,634		—		—
The Gallery at Market East I		100	%		48,388,196			48,388,196			2,776,047		45,612,149		—		—
The Gallery at Market East II		100	%		28,141,680			28,141,680			802,166		27,339,514		—		—
The Mall at Prince Georges		100	%		92,376,675			92,376,675			14,199,394		78,177,281		42,273,130		41,096,688
Uniontown Mall ⁽²⁾⁽³⁾		89	%		34,633,265			34,633,265			1,968,395		32,664,870		23,836,721		22,252,550
Valley Mall		100	%		86,122,343			86,122,343			4,515,966		81,606,377		—		—
Valley View Mall		100	%		60,050,088			60,050,088			2,571,059		57,479,029		37,150,734		36,638,298
Viewmont Mall ⁽²⁾⁽³⁾		89	%		76,522,861			76,522,861			3,097,743		73,425,118		29,795,901		27,815,688
Washington Crown Center ⁽²⁾		89	%		42,525,613			42,525,613			3,066,821		39,458,792		—		—
Willow Grove Park		100	%		175,332,784			175,332,784			14,024,331		161,308,453		109,273,707		107,899,941
Wiregrass Mall ⁽⁵⁾		100	%		37,435,634			37,435,634			1,740,798		35,694,836		—		—
Wyoming Valley Mall ⁽²⁾⁽³⁾		100	%		91,054,921			91,054,921			3,691,899		87,363,022		56,612,212		52,849,807
Westgate Anchor Pad		100	%		3,370,710			3,370,710			—		3,370,710		—		—

Sub-Total Retail Properties				$	2,642,044,981		$	2,642,044,981		$	185,057,960	$	2,456,987,021	$	1,178,594,598	$	1,129,431,672

Office/Industrial Properties
ARA Services, Allentown, PA ⁽⁶⁾		100	%	$	84,610		$	84,610		$	81,610	$	3,000	$	—	$	—
ARA Services, Pennsauken, NJ ⁽⁶⁾		100	%		280,223			280,223			171,218		109,005		—		—
Interstate Container Corporation ⁽⁶⁾		100	%		1,802,271			1,802,271			1,535,165		267,106		—		—
Sears Roebuck & Co. ⁽⁶⁾		100	%		406,857			406,857			351,478		55,379		—		—
P&S Building		100	%		1,502,711			1,502,711			—		1,502,711		—		—

Sub-Total Office/Industrial and Properties				$	4,076,672		$	4,076,672		$	2,139,471	$	1,937,201	$	—	$	—

Land/Development Properties
Lacey		100	%		12,572,222		$	12,572,222		$	—		12,572,222		—		—
New Garden		100	%		5,916,165			5,916,165			—		5,916,165		—		—
The Plaza at Magnolia		100	%		4,110,471			4,110,471			—		4,110,471		—		—
Land held for development		100	%		5,937,674			5,937,674			—		5,937,674		—		—

Sub-Total Land/Development Properties				$	28,536,532		$	28,536,532		$	—	$	28,536,532	$	—	$	—

TOTAL for WHOLLY OWNED PROPERTIES				$	2,674,658,185		$	2,674,658,185		$	187,197,431	$	2,487,460,754	$	1,178,594,598	$	1,129,431,672

TOTAL for PARTNERSHIPS				$	272,661,384		$	134,686,285		$	35,733,665	$	98,952,620	$	106,387,137	$	106,387,137

CORPORATE /LINE OF CREDIT														$	431,000,000	$	431,000,000

TOTAL for WHOLLY OWNED and PARTNERSHIP PROPERTIES				$	2,947,319,569		$	2,809,344,470		$	222,931,096	$	2,586,413,374	$	1,715,981,735	$	1,666,818,809


Property Name	PREIT’s Share of Mortgage Debt Premium			Current Mortgages Interest Rate			Marked to Market Interest Rate (GAAP)			Annual Mortgage Debt Service		Mortgage Balance at Maturity		Date of Maturity		Notes
Retail Properties
Beaver Valley Mall	$	—			7.36	%		7.36	%	$	3,972,402	$	42,265,601		2012
Capital City ⁽²⁾		5,680,644			7.61	%		5.50	%		4,602,529		47,842,921		2012
Chambersburg Mall ⁽²⁾⁽³⁾		1,320,142			7.43	%		4.99	%		1,762,666		17,199,298		2008
Cherry Hill Mall		926,721			10.60	%		5.00	%		9,132,792		70,237,549		2005
Christiana Power I		—			—			—			—		—
Creekview		—			—			—			—		—
Crest Plaza Shopping Center		—			—			—			—		—
Crossroads Mall		588,706			7.39	%		5.75	%		1,191,103		12,646,534		2008
Cumberland Mall		2,593,849 —			6.50 5.00	% %		5.40 5.00	% %		3,413,167 205,512		38,782,131 —		2012 2017
Dartmouth Mall		—			4.95	%		4.95	%		4,483,668		57,594,279		2013
Echelon Mall		—			—			—
Exton Square Mall		5,617,059			6.95	%		5.00	%		8,102,242		93,034,213		2008
Festival at Exton		—			—			—			—		—
Francis Scott Key Mall ⁽³⁾		2,310,248			7.43	%		4.99	%		3,084,665		30,098,771		2008
Gadsden Mall		—			—			—			—		—
Jacksonville Mall ⁽³⁾		1,782,192			7.43	%		4.99	%		2,379,598		23,219,052		2008
Logan Valley Mall ⁽²⁾⁽³⁾		3,762,404			7.43	%		4.99	%		5,023,597		49,017,998		2008
Lycoming Mall ⁽²⁾⁽³⁾		2,310,249			7.43	%		4.99	%		3,084,664		30,098,771		2008
Magnolia Mall ⁽⁵⁾		—			8.20	%		8.20	%		2,597,726		17,782,882		2007
Moorestown Mall		—			4.95	%		4.95	%		4,115,367		52,863,321		2013
New River Valley Mall ⁽³⁾		1,122,121			7.43	%		4.99	%		1,498,266		14,619,403		2008
Nittany Mall ⁽²⁾⁽³⁾		1,980,213			7.43	%		4.99	%		2,643,998		25,798,946		2008
North Hanover Mall ⁽²⁾⁽³⁾		1,320,142			7.43	%		4.99	%		1,762,666		17,199,298		2008
Northeast Tower Center ⁽³⁾		1,155,124			7.43	%		4.99	%		1,542,332		15,049,385		2008
Orlando Fashion Square		—			—			—			—		—		—
Palmer Park Mall		—			6.77	%		6.77	%		1,661,220		15,674,394		2009
Patrick Henry Mall ⁽³⁾		3,333,360			7.43	%		4.99	%		4,450,730		43,428,226		2008
Paxton Towne Centre		—			—			—			—		—		—
Phillipsburg Mall ⁽³⁾		1,980,213			7.43	%		4.99	%		2,643,998		25,798,946		2008
Plymouth Meeting Mall		—			—			—			—		—		—
Schuylkill Mall ^{(2) (4)}		—			7.25	%		7.25	%		N/A		N/A		2008
South Blanding Village		—			—			—			—		—		—
South Mall ⁽²⁾⁽³⁾		990,106			7.43	%		4.99	%		1,321,999		12,899,473		2008
The Commons at Magnolia		—			—			—			—		—		—
The Gallery at Market East I		—			—			—			—		—		—
The Gallery at Market East II		—			—			—			—		—		—
The Mall at Prince Georges		1,176,442			8.70	%		6.80	%		4,134,937		39,986,536		2007
Uniontown Mall ⁽²⁾⁽³⁾		1,584,171			7.43	%		4.99	%		2,115,199		20,639,157		2008
Valley Mall		—			—			—			—		—		—
Valley View Mall		512,436			6.15	%		5.75	%		2,275,500		34,280,656		2009
Viewmont Mall ⁽²⁾⁽³⁾		1,980,213			7.43	%		4.99	%		2,643,998		25,798,946		2008
Washington Crown Center ⁽²⁾		—			—			—			—		—		—
Willow Grove Park		1,373,766			8.39	%		6.37	%		10,046,933		107,307,726		2006
Wiregrass Mall ⁽⁵⁾		—			—			—			—		—		—
Wyoming Valley Mall ⁽²⁾⁽³⁾		3,762,405			7.43	%		4.99	%		5,023,597		49,017,998		2008
Westgate Anchor Pad		—			—			—			—		—		—

Sub-Total Retail Properties	$	49,162,926			7.36	%		5.46	%	$	100,917,071	$	1,030,182,411

Office/Industrial Properties
ARA Services, Allentown, PA ⁽⁶⁾	$	—			—			—		$	—	$	—		—
ARA Services, Pennsauken, NJ ⁽⁶⁾		—			—			—			—		—		—
Interstate Container Corporation ⁽⁶⁾		—			—			—			—		—		—
Sears Roebuck & Co. ⁽⁶⁾		—			—			—			—		—		—
P&S Building		—			—			—			—		—		—

Sub-Total Office/Industrial and Properties	$	—			—			—		$	—	$	—

Land/Development Properties
Lacey		—			—			—			—		—		—
New Garden		—			—			—			—		—		—
The Plaza at Magnolia		—			—			—			—		—		—
Land held for development		—			—			—			—		—		—

Sub-Total Land/Development Properties	$	—			—			—		$	—	$	—

TOTAL for WHOLLY OWNED PROPERTIES	$	49,162,926			7.36	%		5.46	%	$	100,917,071	$	1,030,182,411

TOTAL for PARTNERSHIPS	$	—			7.46	%		7.46	%	$	10,205,588	$	93,987,764

CORPORATE /LINE OF CREDIT	$	—

TOTAL for WHOLLY OWNED and PARTNERSHIP PROPERTIES	$	49,162,926			7.37	%		5.63	%	$	111,122,659	$	1,124,170,176

⁽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⁾

In December 2004, the Company completed a modification of the mortgage on Schuylkill Mall. The modification limits the monthly payments 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 can not be determined.

⁽⁵⁾	In July 2005, the Company completed a mortgage loan refinancing for Magnolia Mall of $66.0 million. The new mortgage has an interest rate of 5.33% and a 2015 maturity date.

⁽⁶⁾	In August 2005, the Company sold its four industrial properties.

PAGE 13

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

DEBT SCHEDULE of PARTNERSHIP 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
Retail Properties
Court at Oxford Valley	50	%	$	55,643,890	$	27,821,945	$	5,123,599	$	22,698,346	$	20,924,353	$	20,924,353
Laurel Mall ⁽²⁾	40	%		31,505,850		12,602,340		5,146,401		7,455,939		9,040,808		9,040,808
Lehigh Valley Mall	50	%		34,355,716		17,177,858		9,958,577		7,219,281		22,709,745		22,709,745
Metroplex Shopping Center	50	%		83,912,490		41,956,245		6,799,035		35,157,210		31,632,120		31,632,120
Red Rose Commons	50	%		23,883,372		11,941,686		1,816,370		10,125,316		13,506,546		13,506,546
Springfield Park I&II	50	%		13,291,878		6,645,939		752,095		5,893,844		1,756,876		1,756,876
Whitehall Mall	50	%		30,068,188		15,034,094		6,137,588		8,896,506		6,816,689		6,816,689

Sub-Total Retail Properties			$	272,661,384	$	133,180,107	$	35,733,665	$	97,446,442	$	106,387,137	$	106,387,137

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

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

TOTAL for PARTNERSHIPS			$	272,661,384	$	134,686,285	$	35,733,665	$	98,952,620	$	106,387,137	$	106,387,137


Property Name	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	$	—	8.02	%	$	2,319,426	$	15,666,965	2011
Laurel Mall ⁽²⁾		—	6.00	%		661,904		7,819,521	2013
Lehigh Valley Mall		—	7.90	%		2,479,260		21,750,439	2006
Metroplex Shopping Center		—	7.25	%		2,680,953		28,784,676	2011
Red Rose Commons		—	7.66	%		1,220,048		12,425,422	2009
Springfield Park I&II		—	7.79	%		202,561		1,411,804	2010
Whitehall Mall		—	6.77	%		641,436		6,128,937	2008

Sub-Total Retail Properties	$	—	7.46	%	$	10,205,588	$	93,987,764

Construction in Progress/Development
Pavilion at Market East	$	—	—		$	—	$	—

Sub-Total Properties Under Development	$	—	—		$	—	$	—

TOTAL for PARTNERSHIPS	$	—	7.46	%	$	10,205,588	$	93,987,764

⁽¹⁾	Includes development and CIP costs.

⁽²⁾	In July 2005, the Company sold its ownership interest in Laurel Mall.

PAGE 14

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

Amortization of Debt Premium Schedule ⁽¹⁾


	Scheduled Amortization of Premium		Debt Premium Balance
Q2 05	$	4,871,898	$	49,162,926
Q3 05		4,851,711		44,311,215
Q4 05		3,902,278		40,408,937
Q1 06		3,707,638		36,701,299
Q2 06		3,364,389		33,336,910
Q3 06		3,348,669		29,988,241
Q4 06		3,324,908		26,663,333
Q1 07		3,300,910		23,362,423
Q2 07		3,299,681		20,062,742
Q3 07		3,135,723		16,927,019
Q4 07		3,110,838		13,816,181
Q1 08		3,093,316		10,722,865
Q2 08		3,083,019		7,639,846
Q3 08		3,017,091		4,622,755
Q4 08		596,438		4,026,317
Q1 09		320,666		3,705,651
Q2 09		334,270		3,371,381
Q3 09		332,872		3,038,509
Q4 09		295,072		2,743,437
Q1 10		286,447		2,456,990
Q2 10		299,845		2,157,145
Q3 10		298,489		1,858,656
Q4 10		289,844		1,568,812
Q1 11		281,258		1,287,554
Q2 11		294,287		993,267
Q3 11		292,828		700,439
Q4 11		284,220		416,219
Q1 12		215,864		200,355
Q2 12		88,293		112,062
Q3 12		87,817		24,245
Q4 12		24,245		—

	$	54,034,824

LOGO

⁽¹⁾

The above schedule assumes that PREIT continues to own the corresponding properties throughout the period presented and that no refinancings occur to pay off the debt on those properties. The above schedule also assumes that PREIT does not acquire additional properties with above or below market debt in place where adjustments would be made to reflect a debt premium or discount.

PAGE 15

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

DEBT ANALYSIS

Outstanding Debt ⁽¹⁾


	Fixed Rate		% of Total Indebtedness		Floating Rate		% of Total Indebtedness		Total		% of Total Indebtedness
Wholly Owned

Mortgage Notes Payable	$	1,178,594,598	68.7	%	$	—	0.0	%	$	1,178,594,598	68.7	%
Partnerships (at PREIT’s share)
Mortgage Notes Payable		106,387,137	6.2	%		—	0.0	%		106,387,137	6.2	%
Corporate
Revolving Line of Credit		—	0.0	%		431,000,000	25.1	%		431,000,000	25.1	%

TOTAL OUTSTANDING DEBT		1,284,981,735				431,000,000				1,715,981,735

SWAP		—				—				—

TOTAL DEBT AFTER HEDGE	$	1,284,981,735	*74.9*	%	$	431,000,000	*25.1*	%	$	1,715,981,735	*100.0*	%

(1)	Includes mark to market of debt.

LOGO

Weighted Average Interest Rates


	Principal Balance		Weighted Average Interest Rate
Fixed Rate Debt	$	1,235,818,809	7.37	%
Mortgage Debt Premium		49,162,926	N/A
Floating Rate Debt		431,000,000	4.07	%

TOTAL	$	1,715,981,735	6.51	%

Mortgage Maturity Schedule ⁽¹⁾


Year	Mortgage Balance at Maturity		% of Debt Expiring		Cumulative % of Debt Expiring
2005		70,237,549	6.2	%	6.2	%
2006		129,058,165	11.5	%	17.7	%
2007		57,769,418	5.1	%	22.9	%
2008		511,693,352	45.5	%	68.4	%
2009		62,380,472	5.5	%	73.9	%
2010		1,411,804	0.1	%	74.1	%
2011		44,451,641	4.0	%	78.0	%
2012		128,890,653	11.5	%	89.5	%
2013		118,277,121	10.5	%	100.0	%
Thereafter		—	—		100.0	%

	$	1,124,170,176	100.0	%

⁽¹⁾	The average period to mortgage maturity is 4.4 years.

Interest Rate Hedging Instruments ⁽¹⁾


	Notional Amount		Blended Rate		Expected Settlement Date
SWAP	$	120,000,000	4.69	%	10/31/2007
SWAP	$	250,000,000	4.80	%	12/10/2008

(1)	On June 7, 2005 The Company announced that it had entered into interest rate swap agreements to hedge interest rates on $370 million of future debt.

Average Debt Balance


		Mortgage Debt ⁽¹⁾			Line of Credit & Bank Loans		REMIC ⁽¹⁾			TOTAL
Beginning Balance	3/31/2005	$	841,224,076		$	402,000,000	$	466,321,271		$	1,709,545,438
Disposition- Home Depot Parcel	5/2/2005		(12,500,000	)				—			(12,500,000	)
Working Capital	6/15/2005					17,000,000		—			17,000,000
Working Capital	6/30/2005					12,000,000		—			12,000,000
Debt Amortization (2)	6/30/2005		(5,578,805	)		—		(4,484,807	)		(10,063,612	)

Ending Balance	6/30/2005	$	823,145,271		$	431,000,000	$	461,836,464		$	1,715,981,735

Weighted Average Balance		$	833,119,680		$	404,802,198	$	466,321,271		$	1,704,243,149

(1)	Includes mark to market of debt.

(2)	Includes the amortization of debt premium.

PAGE 16

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

DEBT RATIOS⁽¹⁾


	6/30/2005			6/30/2004
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	$	1,755,793,780		$	1,610,383,019
Gross Asset Value	$	3,569,285,762		$	3,105,246,953
Ratio		49.19	%		51.86	%

EBITDA to Interest Expense
Ratio of EBITDA⁽⁵⁾ to Interest Expense⁽⁶⁾ greater than or equal to 1.90 to 1.00.
EBITDA	$	251,676,707		$	186,087,656
Interest Expense	$	107,142,264		$	85,026,790
Ratio		2.35			2.19

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	$	250,446,926		$	184,384,301
Fixed Charges	$	143,965,407		$	109,871,886
Ratio		1.74			1.68

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	$	1,235,818,809		$	1,310,372,560
Gross Asset Value	$	3,569,285,762		$	3,105,246,953
Ratio		34.62	%		42.20	%

⁽¹⁾	Debt ratios are based on loan covenants included in the Company’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 6/30/2004 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 6/30/2005 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 Properties 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 Company 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 affliliates.

⁽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 17

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

PORTFOLIO SUMMARY – RETAIL

(Ordered by State)

Retail Properties ⁽¹⁾

City

State

Property
Subtype

Management
Status

Property Status

Ownership
Interest

Date Acquired

Year
Built/ Last
Renovated

Years Since
Renovation

Wiregrass Commons

Dothan

Enclosed
Mall

PREIT

Existing

100%

2003

1986/1999

Gadsden Mall

Gadsden

Enclosed
Mall

PREIT

New

100%

2005

1974/1990

Christiana Power Center I

Newark

Power
Center

PREIT

Existing

100%

1998

South Blanding Village

Jacksonville

Strip
Center

PREIT

Existing

100%

1988/1990

1986

Orlando Fashion Square

Orlando

Enclosed
Mall

PREIT

New

100%

2004

1973/2003

Francis Scott Key Mall ⁽²⁾

Frederick

Enclosed
Mall

PREIT

Existing

89%

2003

1978/1991

Valley Mall

Hagerstown

Enclosed
Mall

PREIT

Existing

100%

2003

1974/1999

The Mall at Prince Georges

Hyattsville

Enclosed
Mall

PREIT

Existing

100%

1998

1959/2004

Dartmouth Mall

Dartmouth

Enclosed
Mall

PREIT

Existing

100%

1997

1971/2000

Cherry Hill Mall

Cherry Hill

Enclosed
Mall

PREIT

Existing

100%

2003

1961/1990

Moorestown Mall

Moorestown

Enclosed
Mall

PREIT

Existing

100%

2003

1963/2000

Phillipsburg Mall

Phillipsburg

Enclosed
Mall

PREIT

Existing

89%

2003

1989/2003

Cumberland Mall

Vineland

Enclosed
Mall

PREIT

New

100%

2005

1973/2003

Echelon Mall

Voorhees

Enclosed
Mall

PREIT

Existing

100%

2003

1970/1998

Jacksonville Mall

Jacksonville

Enclosed
Mall

PREIT

Existing

100%

2003

1981/1998

Crest Plaza Shopping Center

Allentown

Strip
Center

PREIT

Existing

100%

1964

1959/2003

Lehigh Valley Mall

Allentown

Enclosed
Mall

Third
Party

Existing

50%

1973

1977/1996

South Mall ⁽²⁾

Allentown

Enclosed
Mall

PREIT

Existing

89%

2003

1975/1992

Whitehall Mall

Allentown

Power
Center

Third
Party

Existing

50%

1964

1964/1998

Logan Valley Mall ⁽²⁾

Altoona

Enclosed
Mall

PREIT

Existing

100%

2003

1960/1997

Capital City Mall ⁽²⁾

Camp Hill

Enclosed
Mall

PREIT

Existing

100%

2003

1974/1998

Chambersburg Mall ⁽²⁾

Chambersburg

Enclosed
Mall

PREIT

Existing

89%

2003

1982

Palmer Park Mall

Easton

Enclosed
Mall

PREIT

Existing

100%

1972/2003

1972/1998


Retail Properties ⁽¹⁾	Owned GLA (anchors)	Owned GLA (non- anchors)	TOTAL Owned GLA	Space Not Owned (Name/ GLA)		TOTAL Property GLA	Anchors / Majors Tenants	Lease Expiration
Wiregrass Commons	—	229,713	229,713	Dillard’s JC Penney McRaes Parisian	403,163	632,876	Dillard’s JC Penney McRaes Parisian	N/A N/A N/A N/A
Gadsden Mall	274,060	203,369	477,429		—	477,429	Belk McRae’s Sears	2/19/11 7/31/14 3/5/09
Christiana Power Center I	190,814	111,595	302,409		—	302,409	Costco Dick’s Sporting Gds	1/31/19 11/30/13
South Blanding Village	73,921	32,736	106,657		—	106,657	Staples Food Lion	9/30/08 7/31/08
Orlando Fashion Square	491,999	436,317	928,316	Sears	155,576	1,083,892	Burdines-Macy’s Dillard’s JC Penney Sears	10/31/71 1/31/14 4/30/13 N/A
Francis Scott Key Mall ⁽²⁾	291,620	275,446	567,066	Hecht’s	139,333	706,399	Hecht’s Sears JC Penney Value City	N/A 7/31/08 5/31/06 6/30/10
Valley Mall	294,348	364,960	659,308	Sears Hecht’s	243,400	902,708	Sears JC Penney Bon-Ton Hecht’s	N/A 10/3/09 1/31/14 N/A
The Mall at Prince Georges	479,619	355,911	835,530		—	835,530	JC Penney Hecht’s Target	7/31/06 10/31/08 1/31/10
Dartmouth Mall	208,460	322,132	530,592	Filene’s	140,000	670,592	JC Penney Sears Filene’s	7/31/09 4/12/16 N/A
Cherry Hill Mall	—	523,314	523,314	JC Penney Macy’s Strawbridge’s	740,770	1,264,084	JC Penney Macy’s Strawbridge’s	N/A N/A N/A
Moorestown Mall	408,356	316,543	724,899	Lord & Taylor Strawbridge’s	321,200	1,046,099	Boscov’s Lord & Taylor Sears Strawbridge’s	10/31/10 N/A 10/5/22 N/A
Phillipsburg Mall	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
Cumberland Mall	438,706	364,810	803,516	BJ’s	117,889	921,405	Boscov’s Home Depot JC Penney Value City	10/31/95 10/31/19 11/30/08 7/31/08
Echelon Mall	297,323	433,195	730,518	Boscov’s Strawbridge’s	396,783	1,127,301	Boscov’s Strawbridge’s	N/A N/A
Jacksonville Mall	242,115	231,762	473,877		—	473,877	Belk JC Penney Sears	8/21/11 8/31/10 8/4/11
Crest Plaza Shopping Center	53,445	60,826	114,271	Target	143,130	257,401	Weis Market Target	1/31/07 N/A
Lehigh Valley Mall	212,000	463,416	675,416	JC Penney Strawbridge’s Firestone	371,986	1,047,402	Macy’s JC Penney Strawbridge’s	7/31/12 N/A N/A
South Mall ⁽²⁾	188,858	214,884	403,742		—	403,742	Bon-Ton Stein Mart Steve & Barry’s	1/28/11 10/31/06 1/31/11
Whitehall Mall	294,635	231,750	526,385		—	526,385	Kohl’s Sears Bed, Bath & Beyond	3/9/07 9/18/11 1/31/10
Logan Valley Mall ⁽²⁾	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⁾	204,301	284,434	488,735	Hecht’s	120,000	608,735	JC Penney Hecht’s Sears	11/30/10 N/A 7/28/09
Chambersburg Mall ⁽²⁾	241,690	212,251	453,941		—	453,941	Bon-Ton JC Penney Sears Value City	1/28/11 3/31/12 2/9/10 2/28/07
Palmer Park Mall	314,235	139,342	453,577		—	453,577	Bon-Ton Boscov’s	7/25/14 10/31/18

PAGE 18A

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

PORTFOLIO SUMMARY – RETAIL

(Ordered by State)

Retail Properties ⁽¹⁾

City

State

Property
Subtype

Management
Status

Property Status

Ownership
Interest

Date Acquired

Year
Built/ Last
Renovated

Years Since
Renovation

Exton Square Mall

Exton

Enclosed
Mall

PREIT

Existing

100%

2003

1973/2000

Festival at Exton

Exton

Strip
Center

PREIT

Existing

100%

1998

1991

North Hanover Mall ⁽²⁾

Hanover

Enclosed
Mall

PREIT

Existing

89%

2003

1967/1999

Paxton Towne Centre

Harrisburg

Power
Center

PREIT

Existing

100%

1999

2001

Laurel Mall (3)

Hazleton

Enclosed
Mall

Third
Party

Existing

40%

1988

1973/1995

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

Beaver Valley Mall

Monaca

Enclosed
Mall

PREIT

Existing

100%

2002

1970/1991

Lycoming Mall ⁽²⁾

Pennsdale

Enclosed
Mall

PREIT

Existing

89%

2003

1978/1990

Northeast Tower Center

Philadelphia

Power
Center

PREIT

Existing

100%

1998/1999

1997/1998

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

Plymouth Meeting Mall

Plymouth
Meeting

Enclosed
Mall

PREIT

Existing

100%

2003

1966/1999

Metroplex Shopping Center

Plymouth
Meeting

Power
Center

Third
Party

Existing

50%

1999

2001

Viewmont Mall ⁽²⁾

Scranton

Enclosed
Mall

PREIT

Existing

89%

2003

1968/1996

Springfield Park I & II

Springfield

Strip
Center

PREIT

Existing

50%

1997/1998

Nittany Mall ⁽²⁾

State
College

Enclosed
Mall

PREIT

Existing

89%

2003

1968/1990

Uniontown Mall ⁽²⁾

Uniontown

Enclosed
Mall

PREIT

Existing

89%

2003

1972/1990

Creekview Shopping Center

Warrington

Power
Center

PREIT

Existing

100%

1999

2001


Retail Properties ⁽¹⁾	Owned GLA (anchors)	Owned GLA (non-anchors)	TOTAL Owned GLA	Space Not Owned (Name/GLA)		TOTAL Property GLA	Anchors / Majors Tenants	Lease Expiration
Exton Square Mall	440,301	369,955	810,256	Strawbridge’s K-Mart	277,468	1,087,724	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	60,425	84,618	145,043		—	145,043	Sears Hardware	8/18/2005
North Hanover Mall ⁽²⁾	288,177	164,903	453,080		—	453,080	Bon-Ton JC Penney Black Rose Antiques Sears	1/31/06 1/31/11 N/A 11/30/09
Paxton Towne Centre	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)	350,323	209,300	559,623		—	559,623	Boscov’s K-Mart JC Penney	4/30/08 8/31/19 10/31/09
Red Rose Commons	—	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	176,831	280,032	456,863	Home Depot BJ’s	247,623	704,486	Best Buy BJ’s Dick’s Sporting Gds Home Depot Linens N Things	12/31/11 N/A 4/15/11 N/A 2/14/17
Beaver Valley Mall	511,267	430,773	942,040	Kaufmann’s	204,770	1,146,810	Boscov’s JC Penney Sears Kaufmann’s	9/30/18 9/30/17 8/15/06 N/A
Lycoming Mall ⁽²⁾	321,441	341,551	662,992	Kaufmann’s	120,000	782,992	Bon-Ton JC Penney Kaufman’s Sears Value City	7/31/06 10/31/10 N/A 7/31/08 7/31/08
Northeast Tower Center	119,388	182,521	301,909	Raymour & Flanigan Home Depot	175,311	477,220	Home Depot Petsmart Raymour & Flanigan Wal-Mart	N/A 2/28/12 N/A 1/31/14
The Gallery at Market East I ⁽⁴⁾		193,365	193,365		—	193,365	K-Mart Strawbridge’s	N/A N/A
The Gallery at Market East II ⁽⁴⁾	127,271	194,432	321,703		—	321,703	Burlington Coat Factory	2/28/2032
Plymouth Meeting Mall	185,000	413,529	598,529	Strawbridge’s	214,635	813,164	AMC Theater Boscov’s Strawbridge’s	12/31/18 10/31/16 N/A
Metroplex Shopping Center	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⁾	386,262	237,039	623,301	Kaufmann’s	120,000	743,301	JC Penney Sears Kauffmann’s	10/31/10 12/31/10 N/A
Springfield Park I & II	83,539	43,432	126,971	Target	145,669	272,640	Target Bed, Bath & Beyond LA Fitness	N/A 1/31/09 3/31/17
Nittany Mall ⁽²⁾	221,462	215,783	437,245	Kaufmann’s	95,000	532,245	Bon-Ton JC Penney Kaufmann’s Sears	1/31/08 7/31/10 N/A 8/31/10
Uniontown Mall ⁽²⁾	421,378	277,174	698,552		—	698,552	Bon-Ton JC Penney Roomful Express Furn. Sears Teletech Customer Care Value City	1/31/11 10/31/10 3/26/10 2/25/08 6/28/08 7/31/07
Creekview Shopping Center	—	136,086	136,086	Target Lowe’s	288,916	425,002	Target Lowe’s Genuardi’s	N/A N/A 12/31/21

PAGE 18B

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

PORTFOLIO SUMMARY--RETAIL

(Ordered by State)

Retail Properties ⁽¹⁾

City

State

Property
Subtype

Management
Status

Property Status

Ownership
Interest

Date Acquired

Year
Built/ Last
Renovated

Years Since
Renovation

Washington Crown Center ⁽²⁾

Washington

Enclosed
Mall

PREIT

Existing

89%

2003

1969/1999

Wyoming Valley Mall ⁽²⁾

Wilkes-Barre

Enclosed
Mall

PREIT

Existing

100%

2003

1974/1995

Willow Grove Park

Willow Grove

Enclosed
Mall

PREIT

Existing

100%

2000/2003

1982/2001

Magnolia Mall

Florence

Enclosed
Mall

PREIT

Existing

100%

1997

1979/1992

The Commons at Magnolia

Florence

Strip
Center

PREIT

Existing

100%

1999

1991/2002

New River Valley Mall

Christiansburg

Enclosed
Mall

PREIT

Existing

89%

2003

1988

Patrick Henry Mall

Newport News

Enclosed
Mall

PREIT

Existing

89%

2003

1988/1999

Crossroads Mall

Beckley

Enclosed
Mall

PREIT

Existing

100%

2003

1981

Valley View Mall

La Crosse

Enclosed
Mall

PREIT

Existing

100%

2003

1980/2001

Properties Held For Sale

Schuylkill Mall ⁽²⁾

Frackville

Enclosed
Mall

PREIT

Existing

100%

2003

1980/1991

TOTAL ASSETS HELD FOR SALE

TOTAL CONTINUING PROPERTIES

TOTAL WHOLLY OWNED

TOTAL PARTNERSHIP

TOTAL FOR Wholly Owned and Partnerships

AVERAGE FOR Wholly Owned and Partnerships

9.31


Retail Properties ⁽¹⁾	Owned GLA (anchors)	Owned GLA (non- anchors)	TOTAL Owned GLA	Space Not Owned (Name/ GLA)		TOTAL Property GLA	Anchors / Majors Tenants	Lease Expiration
Washington Crown Center ⁽²⁾	245,401	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⁾	592,110	319,291	911,401		—	911,401	Bon-Ton JC Penney Sears Kaufmann’s	1/31/07 1/31/07 8/1/06 1/31/07
Willow Grove Park	225,000	336,369	561,369	Sears Bloomingdale’s Strawbridge	641,861	1,203,230	Sears Bloomingdale’s Strawbridge’s Macy’s	N/A N/A N/A 1/31/22
Magnolia Mall	343,118	221,869	564,987		—	564,987	Belk Best Buy JC Penney Sears	1/31/06 1/31/13 3/31/07 10/16/09
The Commons at Magnolia	51,574	52,915	104,489	Target	126,200	230,689	Goody’s Target	5/31/12 N/A
New River Valley Mall	240,306	187,849	428,155		—	428,155	Belk JC Penney Sears	4/19/08 3/31/08 8/2/08
Patrick Henry Mall	294,369	232,620	526,989	Hecht’s	140,000	666,989	Dillard’s JC Penney Hecht’s	4/30/08 10/31/15 N/A
Crossroads Mall	256,248	192,354	448,602		—	448,602	Sears JC Penney Belk	3/31/11 12/31/11 11/4/08
Valley View Mall	96,357	236,213	332,570	Herberger’s Marshall Fields Sears	254,596	587,166	JC Penney Herberger’s Marshall Fields Sears	7/31/10 N/A N/A N/A
Properties Held For Sale
Schuylkill Mall ⁽²⁾	346,990	318,761	665,751	Bon-Ton	60,916	726,667	K-Mart Sears Bon-Ton Black Diamond Antiques	10/31/10 10/31/10 N/A 12/31/04
TOTAL ASSETS HELD FOR SALE	346,990	318,761	665,751	—	60,916	726,667
TOTAL CONTINUING PROPERTIES	12,237,422	13,187,419	25,424,841	—	7,258,751	32,683,592
TOTAL WHOLLY OWNED	11,399,899	11,604,522	23,004,421		6,054,070	29,058,491
TOTAL PARTNERSHIP	1,184,513	1,901,658	3,086,171		1,265,597	4,351,768
TOTAL FOR Wholly Owned and Partnerships	12,584,412	13,506,180	26,090,592		7,319,667	33,410,259
AVERAGE FOR Wholly Owned and Partnerships

Summary of Properties for Wholly Owned and Partnership Properties


Enclosed Mall	PREIT Managed	Existing	Wholly owned
38	45	48	44

Power Center	Third Party Managed	New	Joint Venture
8	6	3	7

Strip Center
5

51	51	51	51


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
22,584,113	23,131,392	23,559,628	23,004,421	17.0%

Power Center	Third Party Managed	New	Partnerships	Top asset as a percentage of Total Owned GLA:
2,909,048	2,959,200	Redevelopment	3,086,171	3.6%
Strip Center		2,530,964
597,431		—

26,090,592	26,090,592	26,090,592	26,090,592

(1)	Does not include Westgate Anchor pad in Bethlehem, PA of 108,100 sf leased to Bon-Ton with expiration date of 11/23/2010

(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 July 2005, PREIT sold its ownership interest in Laurel Mall.

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

PAGE 18C

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

QUARTERLY ACTIVITY

Property Acquisitions/Dispositions Summary


Name of Project, Location		Square Feet/Acres	Ownership Interest		Date or Expected Date Acquired, Completed, or Sold	Total Cost or Price		PREIT’s Cost or Price		Expected NOI Cap ⁽¹⁾		Major Tenants
Acquisitions:
Lacey, Ocean County, NJ	Acres	43	100	%	2Q05	$	9,000,000	$	9,000,000	N/A		Home Depot
New Garden, Chester County, PA		28	100	%	2Q05		4,300,000		4,300,000	N/A		Home Depot

	Acres	71				$	13,300,000	$	13,300,000

TOTAL ACQUISITIONS

Pending Acquisitions:
Land at New River Valley, Christiansburg, VA ⁽²⁾	Acres	16	100	%	3Q05	$	4,000,000	$	4,000,000	N/A

TOTAL PENDING ACQUISITIONS	Acres	16				$	4,000,000	$	4,000,000
Divestitures
Home Depot Parcel, Philadelphia, PA	Acres	14	100	%	2Q05	$	12,500,000	$	12,500,000	N/A		Home Depot

TOTAL DIVESTITURES	Acres	14				$	12,500,000	$	12,500,000

Pending Divestitures:
Laurel Mall, Hazleton, Pennsylvania ⁽³⁾		559,623	40	%	3Q05	$	33,500,000	$	13,400,000	10.0	%	Boscov’s, K-Mart, JC Penney

Industrial Properties (ARA Services, Allentown, PA, ARA Services, Pennsauken, NJ, Interstate Container Corporation, Sears Pennsauken) ⁽⁴⁾	Square Feet	254,791	100	%	3Q05		4,300,000		4,300,000	N/A
Schuylkill Mall, Frackville, Pennsylvania		726,667	100	%	N/A		N/A		N/A	N/A		Bon-Ton, K-Mart, Sears

TOTAL PENDING DIVESTITURES	Square Feet	1,541,081				$	37,800,000	$	17,700,000

⁽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 buyout.

⁽²⁾	In August 2005, The Company acquired 15.7 acres of land in New River Valley.

⁽³⁾	In July 2005, The Company sold its ownership interest in Laurel Mall.

⁽⁴⁾	In August 2005, The Company sold its industrial properties.

PAGE 19

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

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

Christiana Power Center (Phase II) ⁽²⁾

Newark, DE

N/A

4,800,000

N/A

Lacey ⁽³⁾

Ocean County, NJ

Power Center

290,000

36,800,000

27,800,000

12,600,000

7.8

4Q05

New Garden

New Garden Twp, PA

Power Center

N/A

5,900,000

N/A

The Plaza at Magnolia

Florence, SC

Power Center

240,000

15,900,000

11,500,000

4,100,000

11.0

1Q06

Valley View Downs

South Beaver Twp, PA

Land

300,000

N/A

10,000,000

1,100,000

⁽⁴⁾

2Q06

Pavilion at Market East ⁽⁵⁾

Philadelphia, PA

Land

N/A

1,500,000

N/A

New River Valley Retail Center

Christiansburg, VA

Power Center

150,000

23,500,000

100,000

9.5

4Q06

Total Development Activity

980,000

76,200,000

72,800,000

30,100,000

9.0

NAME OF PROJECT

DATE OF

INITIAL

OCCUPANCY

EXPECTED DATE
OF COMPLETION

STATUS

%
COMP.

%
LEASED

%
OCCUPIED

ANCHORS/

MAJOR

TENANTS

PREIT’s
SHARE

Christiana Power Center (Phase II) ⁽²⁾

N/A

Sold

N/A

Lacey ⁽³⁾

4Q06

1Q07

Predevelopment

Home Depot

100

New Garden

N/A

Predevelopment

N/A

TBD

100

The Plaza at Magnolia

4Q06

3Q07

Predevelopment

Home Depot

100

Valley View Downs

2Q08

Predevelopment

N/A

Valley View Downs

N/A

Pavilion at Market East ⁽⁵⁾

N/A

Predevelopment

N/A

TBD

New River Valley Retail Center

3Q07

1Q08

Predevelopment

TBD

100

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)

In May 2005, the partnership that owns the site entered into a settlement agreement with the Delaware Department of Transportation and its Secretary providing for the sale of the approximately 111 acres on which the partnership’s Christiana Phase II project would have been built for $17 million. In July 2005, the property was sold to the Delaware Department of Transportation and $17 million was received by the partnership. The Company and its partners are currently in discussions with respect to the allocation of these funds. The Company expects that it will receive reimbursement for the approximately $4.75 million of costs and expenses incurred previously in connection with the Christiana Phase II project. Pending the completion of negotiations with its partners, the Company is not in a position to estimate the allocation of the balance of the monies to be paid by the Delaware Department of Transportation.

(3)	Home Depot is expected to open in 4Q06 with the balance of the Shopping Center to open during the 1Q07.

(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 Partnership’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)
(2)


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
Capital City Mall	Camp Hill, PA	Enclosed Mall	640,000		11,300,000		11,300,000		2,400,000	10.8	%
Cumberland Mall	Vineland, NJ	Enclosed Mall	950,000		5,200,000		5,200,000		1,400,000	10.6	%
New River Valley Mall	Christiansburg, VA	Enclosed Mall	440,000		11,200,000		11,200,000		70,000	10.4	%
Lycoming Mall	Pennsdale, PA	Enclosed Mall	810,000		10,300,000		10,300,000		1,700,000	11.0	%
Patrick Henry Mall	Newport News, VA	Enclosed Mall	710,000		25,700,000		25,700,000		2,300,000	10.0	%
Cherry Hill Mall	Cherry Hill, NJ	Enclosed Mall	1,400,000		40,000,000		40,000,000		410,000	8.5	%
Valley View Mall	LaCrosse, WI	Enclosed Mall	600,000		4,000,000		4,000,000		—	10.0	%
Francis Scott Key Mall	Frederick, MD	Enclosed Mall	720,000		3,000,000		3,000,000		30,000	8.5	%
Plymouth Meeting Mall	Plymouth Meeting, PA	Enclosed Mall	1,100,000		53,000,000		53,000,000		17,600,000	9.5	%
South Mall	Allentown, PA	Enclosed Mall	420,000		7,000,000		7,000,000		10,000	8.1	%
Echelon Mall	Voorhees, NJ	Enclosed Mall	1,200,000				TBD		2,200,000	TBD

Total Redevelopment Activity			8,990,000	$	170,700,000	$	170,700,000	$	28,120,000	9.5	%

NAME OF PROJECT

CONST

START

DATE

DATE OF
INITIAL
OCCUPANCY

EXPECTED DATE
OF COMPLETION

STATUS

%
COMP.

ANCHORS/

MAJOR

TENANTS

PREIT’s SHARE

Capital City Mall

1Q05

4Q05

1Q06

Construction

Food Court

100

Cumberland Mall

2Q05

2Q06

Construction

Best Buy

100

New River Valley Mall

3Q05

1Q06

Preconstruction

Regal Cinema, Red Robin

100

Lycoming Mall

1Q06

4Q06

2Q07

Preconstruction

Best Buy, Dick’s, Borders

100

Patrick Henry Mall

1Q05

4Q05

1Q06

Construction

Dick’s Sporting Goods, Borders

100

Cherry Hill Mall

2Q06

1Q07

4Q07

Construction

Old Navy

100

Valley View Mall

4Q05

4Q06

Preconstruction

Barnes & Noble

100

Francis Scott Key Mall

4Q05

4Q06

Preconstruction

Barnes & Noble

100

Plymouth Meeting Mall

4Q06

4Q07

Preconstruction

Whole Foods

100

South Mall

1Q06

4Q06

Preconstruction

Ross Dress For Less

100

Echelon Mall

TBD

Preconstruction

TBD

Wal-Mart

100

Total Redevelopment Activity

(1)	GLA and total project cost include tenants that purchased their respective land.

(2)	For more information see PREIT’s press release from 8/4/05.

PAGE 20

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

Top Twenty Tenants (by share of PREIT’s 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	56	1	57	686,919	8,850	695,769	$	13,543,518	$	12,724,208		4.45	%
Limited Brands, Inc.	80	19	99	487,526	78,415	565,941		11,416,131		10,933,249		3.82	%
JC Penney Co., Inc.	24	5	29	2,376,669	569,422	2,946,091		7,609,090		7,477,984		2.61	%
Footlocker, Inc.	77	3	80	409,022	6,732	415,754		7,769,095		7,457,159		2.61	%
Sears, Roebuck and Co.	27	3	30	2,835,857	412,236	3,248,093		5,910,142		5,750,676		2.01	%
Zales Corporation	88	0	88	72,447		72,447		5,498,968		5,285,313		1.85	%
Luxottica Group S.p.A.	84	0	84	142,917		142,917		4,947,163		4,693,583		1.64	%
Hallmark Cards, Inc.	56	2	58	202,049	8,482	210,531		4,510,184		4,433,851		1.55	%
American Eagle Outfitters, Inc.	32	2	34	159,743	8,813	168,556		4,052,633		3,911,633		1.37	%
Sterling Jewelers, Inc.	42	0	42	58,406		58,406		4,049,936		3,862,436		1.35	%
Borders Group Inc.	32	1	33	181,376	3,725	185,101		3,554,856		3,328,957		1.16	%
Transworld Entertainment Corporation	31	1	32	155,619	3,962	159,581		3,320,679		3,208,097		1.12	%
Regis Corporation	92	0	92	108,136		108,136		3,215,287		3,125,264		1.09	%
The Bon-Ton Dept. Stores, Inc.	15	1	16	1,077,982	60,916	1,138,898		2,943,869		2,943,869		1.03	%
The Finish Line, Inc.	26	2	28	127,448	10,520	137,968		2,759,442		2,759,442		0.96	%
Boscov’s Department Store	6	2	8	1,135,110	333,341	1,468,451		3,147,482		2,705,882		0.95	%
Shoe Show, Inc.	33	0	33	159,412		159,412		2,623,698		2,549,659		0.89	%
Charming Shoppes, Inc.	27	1	28	175,991	5,204	181,195		2,628,270		2,484,086		0.87	%
Sun Capital Partners, Inc.	24	2	26	77,997	7,810	85,807		2,485,152		2,401,572		0.84	%
Aeropostale, Inc.	30	0	30	103,027		103,027		2,509,861		2,399,311		0.84	%

Total Top 20 Tenants	882	45	927	10,733,653	1,518,428	12,252,081		98,495,456		94,436,231		33.01	%

Total Retail Leased			3,487			23,939,929	$	295,829,529	$	286,126,344	⁽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 2nd quarter base rent. Straight line rent is not included in the base rent figures.

PAGE 21

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

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	0.70	%	$	188,400	$	188,400	0.51	%	$	2.20
2005	1	20,425	0.17	%		265,525		265,525	0.72	%		13.00
2006	13	921,209	7.57	%		2,418,748		2,418,748	6.59	%		2.63
2007	9	822,331	6.76	%		2,052,420		2,042,520	5.57	%		2.50
2008	17	1,226,147	10.07	%		3,443,509		3,443,509	9.39	%		2.81
2009	14	1,162,400	9.55	%		3,668,079		2,703,374	7.37	%		3.16
2010	22	2,089,444	17.17	%		6,114,328		6,114,328	16.67	%		2.93
2011	13	1,033,710	8.49	%		4,247,616		3,124,801	8.52	%		4.11
2012	3	302,710	2.49	%		512,783		475,902	1.30	%		1.69
2013	6	453,533	3.73	%		2,728,654		2,728,654	7.44	%		6.02
2014	6	662,582	5.44	%		2,081,285		2,081,285	5.67	%		3.14
2015	1	85,212	0.70	%		468,666		468,666	1.28	%		5.50
Thereafter	25	3,305,925	27.16	%		11,683,699		10,625,894	28.97	%		3.53

Totals:	131	12,171,111	100	%	$	39,873,712	$	36,681,606	100	%	$	3.28

⁽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 22

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

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⁾	198	432,702	3.68	%	$	10,563,881	$	9,963,662	4.00	%	$	24.41
2005	205	438,714	3.73	%		10,492,991		10,040,425	4.04	%		23.92
2006	483	1,399,481	11.89	%		29,274,455		27,581,116	11.08	%		20.92
2007	443	1,266,859	10.76	%		27,475,097		26,095,080	10.49	%		21.69
2008	368	1,110,629	9.44	%		26,590,140		25,712,338	10.33	%		23.94
2009	388	1,072,441	9.11	%		26,497,246		25,806,944	10.37	%		24.71
2010	355	1,312,923	11.16	%		29,722,919		28,505,598	11.46	%		22.64
2011	247	1,161,380	9.87	%		26,478,025		23,386,356	9.40	%		22.80
2012	207	891,463	7.57	%		21,743,928		19,968,562	8.03	%		24.39
2013	170	579,065	4.92	%		14,877,136		13,972,212	5.62	%		25.69
2014	147	554,203	4.71	%		14,353,234		12,514,566	5.03	%		25.90
2015	86	487,465	4.14	%		12,148,153		10,396,671	4.18	%		24.92
Thereafter	59	1,061,493	9.02	%		16,498,340		14,884,291	5.98	%		15.54

Totals:	3,356	11,768,818	100	%	$	266,715,545	$	248,827,821	100	%	$	22.66

⁽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 23

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

Leasing Activity Summary


	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	17	78,456	$	26.14	$	28.40	$	2.26	$	5.02	$	—	$	5.02
2nd Quarter	24	82,653		26.05		29.58		3.53		3.32		—		3.32
3rd Quarter								—				—		—
4th Quarter								—				—		—

Total or Average	41	161,109	$	26.09	$	29.01	$	2.91	$	4.15	$	—	$	4.15

Previously Vacant Space:
1st Quarter	19	42,134	$	—	$	29.51	$	29.51	$	3.42	$	—	$	3.42
2nd Quarter	25	138,153		—		16.62		16.62		2.56		—		2.56
3rd Quarter								—				—		—
4th Quarter								—						—

Total or Average	44	180,287		—	$	19.63	$	19.63	$	2.76	$	—	$	2.76

Renewal ⁽³⁾
1st Quarter ⁽⁴⁾	81	765,662	$	7.82	$	8.17	$	0.35	$	—	$	—	$	—
2nd Quarter ⁽⁵⁾	97	971,952		8.04		8.18		0.14		0.03				0.03
3rd Quarter								—						—
4th Quarter								—						—

Total or Average	178	1,737,614	$	7.94	$	8.18	$	0.23	$	0.02	$	—	$	0.02

⁽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 eight anchor leases for 561,135 square feet for an average base rent of $3.29 per square foot. Also includes 73 renewal leases for 204,527 square feet with an average new base rent psf of $21.57, representing an increase of $1.30 in base rent psf.

⁽⁵⁾	Includes six anchor leases for 630,896 square feet for an average base rent of $2.10 per square foot. Also includes 91 renewal leases for 341,056 square feet with an average new base rent psf of $19.41, representing an increase of $0.42 in base rent psf.

PAGE 24

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

Capital Expenditures


	Q2 05 (3 months ended June 30, 2005)
Retail	Wholly Owned		Partnerships		Total
New development projects	$	19,220,971	$	—	$	19,220,971
Redevelopment projects with incremental GLA and/or Anchor Replacement		5,168,590		337,791		5,506,381
Renovation with no incremental GLA		52,842		82,895		135,737
Tenant allowances		4,666,764		—		4,666,764
Operational capital expenditures at properties:
CAM expenditures		1,782,403		—		1,782,403
Non-CAM expenditures		566,753		49,070		615,823

Subtotal operational capital expenditures at properties	$	2,349,156	$	49,070	$	2,398,226

Total	$	31,458,323	$	469,756	$	31,928,079

PAGE 25

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

Enclosed Malls

(Includes Only Owned Space)


	Q205								Change in % Occupancy
	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	89.9	%	10.1	%	77.9	%	22.1	%	0.3	%	-0.3	%	0.2	%	-0.2	%
Capital City	90.6	%	9.4	%	83.8	%	16.2	%	-8.8	%	8.8	%	-15.0	%	15.0	%
Chambersburg Mall	91.1	%	8.9	%	80.9	%	19.1	%	-2.2	%	2.2	%	-4.8	%	4.8	%
Cherry Hill Mall	92.1	%	7.9	%	92.1	%	7.9	%	-1.6	%	1.6	%	-1.6	%	1.6	%
Crossroads Mall	95.4	%	4.6	%	89.2	%	10.8	%	0.2	%	-0.2	%	0.4	%	-0.4	%
Cumberland Mall	99.3	%	0.7	%	98.5	%	1.5	%	N/A		N/A		N/A		N/A
Dartmouth Mall	95.9	%	4.1	%	93.2	%	6.8	%	0.1	%	-0.1	%	0.1	%	-0.1	%
Echelon Mall	32.2	%	67.8	%	53.2	%	46.8	%	-5.5	%	5.5	%	-11.4	%	11.4	%
Exton Square Mall	92.5	%	7.5	%	83.7	%	16.3	%	-0.2	%	0.2	%	-0.4	%	0.4	%
Francis Scott Key Mall	92.3	%	7.7	%	84.2	%	15.8	%	-3.5	%	3.5	%	-7.2	%	7.2	%
Gadsden Mall	95.1	%	4.9	%	88.6	%	11.4	%	N/A		N/A		N/A		N/A
Jacksonville Mall	98.0	%	2.0	%	96.0	%	4.0	%	0.3	%	-0.3	%	0.5	%	-0.5	%
Laurel Mall	94.0	%	6.0	%	84.1	%	15.9	%	-1.1	%	1.1	%	-2.9	%	2.9	%
Lehigh Valley Mall	90.9	%	9.1	%	86.7	%	13.3	%	1.8	%	-1.8	%	2.6	%	-2.6	%
Logan Valley Mall	96.9	%	3.1	%	92.5	%	7.5	%	-1.2	%	1.2	%	-2.7	%	2.7	%
Lycoming Mall	89.1	%	10.9	%	78.8	%	21.2	%	-1.5	%	1.5	%	-2.9	%	2.9	%
Magnolia Mall	93.9	%	6.1	%	84.5	%	15.5	%	1.1	%	-1.1	%	2.9	%	-2.9	%
Moorestown Mall	93.9	%	6.1	%	86.0	%	14.0	%	-0.7	%	0.7	%	-1.8	%	1.8	%
New River Valley Mall	76.0	%	24.0	%	79.8	%	20.2	%	-2.1	%	2.1	%	-4.9	%	4.9	%
Nittany Mall	92.6	%	7.4	%	84.9	%	15.1	%	-2.3	%	2.3	%	-4.6	%	4.6	%
North Hanover Mall	90.9	%	9.1	%	74.9	%	25.1	%	-2.3	%	2.3	%	-5.9	%	5.9	%
Orlando Fashion Square	90.7	%	9.3	%	80.3	%	19.7	%	N/A		N/A		N/A		N/A
Palmer Park Mall	98.9	%	1.1	%	96.5	%	3.5	%	0.4	%	-0.4	%	1.7	%	-1.7	%
Patrick Henry Mall	85.2	%	14.8	%	94.5	%	5.5	%	-14.3	%	14.3	%	-4.4	%	4.4	%
Phillipsburg Mall	91.7	%	8.3	%	80.5	%	19.5	%	1.5	%	-1.5	%	3.2	%	-3.2	%
Plymouth Meeting	90.6	%	9.4	%	86.3	%	13.7	%	-2.2	%	2.2	%	-3.2	%	3.2	%
Schuylkill Mall	74.3	%	25.7	%	64.7	%	35.3	%	-2.1	%	2.1	%	-4.5	%	4.5	%
South Mall	92.9	%	7.1	%	86.7	%	13.3	%	-3.9	%	3.9	%	-7.3	%	7.3	%
The Gallery at Market East I	89.8	%	10.2	%	89.8	%	10.2	%	-4.6	%	4.6	%	-4.6	%	4.6	%
The Gallery at Market East II	80.6	%	19.4	%	67.9	%	32.1	%	N/A		N/A		N/A		N/A
The Mall at Prince Georges	96.9	%	3.1	%	92.7	%	7.3	%	8.1	%	-8.1	%	-0.3	%	0.3	%
Uniontown Mall	95.5	%	4.5	%	88.7	%	11.3	%	-0.1	%	0.1	%	-0.3	%	0.3	%
Valley Mall	99.1	%	0.9	%	98.4	%	1.6	%	-0.1	%	0.1	%	-0.1	%	0.1	%
Valley View Mall	94.0	%	6.0	%	91.6	%	8.4	%	0.7	%	-0.7	%	0.9	%	-0.9	%
Viewmont Mall	99.3	%	0.7	%	98.3	%	1.7	%	0.3	%	-0.3	%	0.8	%	-0.8	%
Washington Crown Center	91.8	%	8.2	%	84.9	%	15.1	%	-2.1	%	2.1	%	-3.8	%	3.8	%
Willow Grove Park	93.5	%	6.5	%	89.2	%	10.8	%	-1.3	%	1.3	%	-2.2	%	2.2	%
Wiregrass Mall	83.8	%	16.2	%	83.8	%	16.2	%	1.2	%	-1.2	%	1.2	%	-1.2	%
Wyoming Valley Mall	96.8	%	3.2	%	90.8	%	9.2	%	-1.3	%	1.3	%	-3.6	%	3.6	%

Enclosed Malls weighted average	90.5	%	9.5	%	85.4	%	14.6	%	-0.8	%	0.8	%	-2.4	%	2.4	%

Wholly Owned Properties	90.4	%	9.6	%	85.3	%	14.7	%	-0.9	%	0.9	%	-2.7	%	2.7	%
Partnership Properties	92.3	%	7.7	%	85.9	%	14.1	%	0.5	%	-0.5	%	0.9	%	-0.9	%

PRI-managed	90.4	%	9.6	%	85.3	%	14.7	%	-0.9	%	0.9	%	-2.7	%	2.7	%
Non PRI-managed	92.3	%	7.7	%	85.9	%	14.1	%	0.5	%	-0.5	%	0.9	%	-0.9	%

Same Properties /Existing	90.2	%	9.8	%	85.4	%	14.6	%	-1.1	%	1.1	%	-2.4	%	2.4	%
New	93.0	%	7.0	%	85.2	%	14.8	%	N/A		N/A		N/A		N/A

Continuing Operations	91.0	%	9.0	%	86.0	%	14.0	%	-0.8	%	0.8	%	-2.4	%	2.4	%

Discontinued Operations	74.3	%	25.7	%	64.7	%	35.3	%	-2.1	%	2.1	%	-4.5	%	4.5	%


	Q204
	Total w/Anchor % Leased		Total w/Anchor % Available		In-Line only (Non- Anchor) % Leased		In-Line (Non- Anchor) % Available
Beaver Valley Mall	89.6	%	10.4	%	77.7	%	22.3	%
Capital City	99.3	%	0.7	%	98.8	%	1.2	%
Chambersburg Mall	93.3	%	6.7	%	85.7	%	14.3	%
Cherry Hill Mall	93.6	%	6.4	%	93.6	%	6.4	%
Crossroads Mall	95.2	%	4.8	%	88.8	%	11.2	%
Cumberland Mall	N/A		N/A		N/A		N/A
Dartmouth Mall	95.8	%	4.2	%	93.1	%	6.9	%
Echelon Mall	37.6	%	62.4	%	64.6	%	35.4	%
Exton Square Mall	92.7	%	7.3	%	84.0	%	16.0	%
Francis Scott Key Mall	95.8	%	4.2	%	91.4	%	8.6	%
Gadsden Mall	N/A		N/A		N/A		N/A
Jacksonville Mall	97.8	%	2.2	%	95.5	%	4.5	%
Laurel Mall	95.1	%	4.9	%	87.0	%	13.0	%
Lehigh Valley Mall	89.0	%	11.0	%	84.1	%	15.9	%
Logan Valley Mall	98.0	%	2.0	%	95.2	%	4.8	%
Lycoming Mall	90.6	%	9.4	%	81.7	%	18.3	%
Magnolia Mall	92.8	%	7.2	%	81.6	%	18.4	%
Moorestown Mall	94.6	%	5.4	%	87.7	%	12.3	%
New River Valley Mall	78.1	%	21.9	%	84.7	%	15.3	%
Nittany Mall	94.8	%	5.2	%	89.5	%	10.5	%
North Hanover Mall	93.1	%	6.9	%	80.8	%	19.2	%
Orlando Fashion Square	N/A		N/A		N/A		N/A
Palmer Park Mall	98.5	%	1.5	%	94.8	%	5.2	%
Patrick Henry Mall	99.5	%	0.5	%	98.9	%	1.1	%
Phillipsburg Mall	90.2	%	9.8	%	77.2	%	22.8	%
Plymouth Meeting	92.8	%	7.2	%	89.6	%	10.4	%
Schuylkill Mall	76.5	%	23.5	%	69.2	%	30.8	%
South Mall	96.8	%	3.2	%	94.0	%	6.0	%
The Gallery at Market East I	94.4	%	5.6	%	94.4	%	5.6	%
The Gallery at Market East II	N/A		N/A		N/A		N/A
The Mall at Prince Georges	88.8	%	11.2	%	92.9	%	7.1	%
Uniontown Mall	95.6	%	4.4	%	89.0	%	11.0	%
Valley Mall	99.2	%	0.8	%	98.5	%	1.5	%
Valley View Mall	93.4	%	6.6	%	90.7	%	9.3	%
Viewmont Mall	99.0	%	1.0	%	97.5	%	2.5	%
Washington Crown Center	93.9	%	6.1	%	88.7	%	11.3	%
Willow Grove Park	94.9	%	5.1	%	91.4	%	8.6	%
Wiregrass Mall	82.6	%	17.4	%	82.6	%	17.4	%
Wyoming Valley Mall	98.0	%	2.0	%	94.4	%	5.6	%

Enclosed Malls weighted average	91.3	%	8.7	%	87.8	%	12.2	%

Wholly Owned Properties	91.3	%	8.7	%	88.0	%	12.0	%
Partnership Properties	91.8	%	8.2	%	85.0	%	15.0	%

PRI-managed	91.3	%	8.7	%	88.0	%	12.0	%
Non PRI-managed	91.8	%	8.2	%	85.0	%	15.0	%

Same Properties /Existing	91.3	%	8.7	%	87.8	%	12.2	%
New	N/A		N/A		N/A		N/A

Continuing Operations	91.8	%	8.2	%	88.4	%	11.6	%

Discontinued Operations	76.5	%	23.5	%	69.2	%	30.8	%

PAGE 26

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

Enclosed Malls

(Includes Non-Anchor Owned Space)


			Q205										% Change
	% of Current Quarter Mall NOI		Avg Base Rent psf (1)		Avg% Rent psf (1)		Additional Charges psf		Avg Comp Sales psf		Occup. Cost Ratio		Avg Base Rent psf		Avg% Rent psf		Additional Charges psf		Avg Comp Sales psf		Occup. Cost Ratio
Sales per square foot above $400
Lehigh Valley Mall			$	31.67	$	0.36	$	9.88	$	461	9.09	%	9.1	%	-37.5	%	-1.6	%	6.8	%	-0.1	%
Patrick Henry Mall				31.77		2.34		13.49		451	10.56	%	2.5	%	33.9	%	28.6	%	3.2	%	0.7	%
The Gallery at Market East II				30.26		1.94		6.36		439	8.78	%	N/A		N/A		N/A		N/A		N/A
Cherry Hill Mall				36.90		1.59		19.46		433	13.38	%	3.1	%	68.5	%	10.6	%	2.6	%	0.5	%
Willow Grove Park				38.66		0.21		20.73		414	14.40	%	1.9	%	-30.9	%	9.7	%	2.0	%	0.3	%

Weighted Average	21.6	%	$	34.57	$	1.14	$	15.22	$	438	11.63	%	2.8	%	36.2	%	3.9	%	3.4	%	0.0	%

Sales per square foot between $350 - $400
Dartmouth Mall			$	19.62	$	1.52	$	7.20	$	397	7.14	%	-0.9	%	10.5	%	-5.4	%	2.1	%	-0.3	%
The Mall at Prince Georges				26.28		1.34		14.08		383	10.89	%	10.5	%	-0.1	%	11.2	%	2.4	%	0.8	%
Moorestown Mall				24.87		0.96		14.58		380	10.63	%	-0.2	%	3.5	%	6.6	%	10.1	%	-0.8	%
Jacksonville Mall				22.49		1.57		6.16		375	8.06	%	5.7	%	2.0	%	6.5	%	1.1	%	0.3	%
Capital City Mall				23.73		1.09		7.47		363	8.90	%	8.4	%	25.2	%	19.2	%	3.4	%	0.6	%
Exton Square Mall				36.62		0.54		15.81		362	14.63	%	5.3	%	-23.8	%	5.1	%	-5.2	%	1.4	%

Weighted Average	20.5	%	$	25.90	$	1.16	$	11.25	$	376	10.20	%	5.1	%	4.0	%	7.6	%	0.8	%	0.5	%

Sales per square foot between $300 - $350
The Gallery at Market East I			$	34.47	$	0.47	$	8.60	$	341	12.77	%	2.4	%	-13.0	%	-11.9	%	-2.8	%	0.2	%
Viewmont Mall				23.26		1.39		8.28		338	9.74	%	4.5	%	-18.5	%	21.3	%	-3.4	%	0.9	%
Wyoming Valley Mall				22.85		0.56		7.74		332	9.38	%	-1.1	%	13.5	%	3.8	%	7.4	%	-0.7	%
Valley Mall				18.42		1.23		5.36		330	7.58	%	2.0	%	36.4	%	-9.5	%	5.1	%	-0.3	%
Valley View Mall				23.19		0.88		11.20		320	11.02	%	0.7	%	69.2	%	-17.7	%	3.6	%	-1.0	%
Palmer Park Mall				21.16		0.87		7.90		319	9.38	%	-0.7	%	-21.0	%	-19.9	%	-2.7	%	-0.5	%
Cumberland Mall				15.97		0.85		6.97		318	7.48	%	N/A		N/A		N/A		N/A		N/A
Magnolia Mall				24.85		0.37		9.46		310	11.19	%	1.1	%	2.8	%	-8.9	%	0.0	%	-0.2	%
Logan Valley Mall				21.22		1.66		8.71		304	10.39	%	3.8	%	8.7	%	18.9	%	2.7	%	0.5	%

Weighted Average	23.9	%	$	22.98	$	0.99	$	8.17	$	324	9.93	%	1.4	%	8.1	%	-3.2	%	1.5	%	-0.1	%

Sales per square foot under $300
Orlando Fashion Square			$	26.13	$	0.27	$	11.38	$	294	12.85	%	N/A		N/A		N/A		N/A		N/A
Phillipsburg Mall				23.07		0.79		10.10		288	11.79	%	1.8	%	17.9	%	-0.6	%	0.3	%	0.1	%
Francis Scott Key Mall				22.35		0.64		7.69		285	10.77	%	6.1	%	-2.6	%	9.6	%	4.4	%	0.2	%
North Hanover Mall				20.61		1.34		6.94		283	10.21	%	5.2	%	-1.2	%	-13.1	%	4.4	%	-0.5	%
Nittany Mall				20.94		1.37		8.04		274	11.08	%	3.5	%	39.6	%	8.1	%	7.9	%	-0.2	%
South Mall				16.74		0.32		4.46		274	7.86	%	26.9	%	-33.0	%	31.4	%	-2.1	%	1.8	%
Wiregrass Mall				21.60		0.88		6.51		270	10.74	%	6.7	%	67.2	%	-17.4	%	4.7	%	-0.4	%
Gadsden Mall				20.72		0.15		7.37		269	10.50	%	N/A		N/A		N/A		N/A		N/A
Laurel Mall				14.25		0.35		7.91		266	8.48	%	6.3	%	-22.8	%	22.4	%	0.6	%	0.8	%
New River Valley Mall				19.85		0.39		5.07		264	9.59	%	3.2	%	-20.2	%	35.7	%	4.3	%	0.3	%
Washington Crown Center				16.68		0.76		4.43		262	8.35	%	3.1	%	132.6	%	-8.2	%	2.3	%	0.0	%
Crossroads Mall				16.89		1.14		6.19		258	9.39	%	1.4	%	31.8	%	-13.9	%	2.4	%	-0.4	%
Lycoming Mall				15.17		0.94		5.32		258	8.31	%	5.4	%	-7.8	%	17.6	%	3.6	%	0.3	%
Uniontown Mall				14.89		0.87		4.40		257	7.84	%	6.5	%	2.7	%	-8.4	%	2.0	%	0.1	%
Chambersburg Mall				19.45		0.87		5.27		254	10.07	%	-1.8	%	833.8	%	-2.8	%	4.5	%	-0.3	%
Plymouth Meeting Mall				19.15		0.00		6.98		243	10.75	%	3.2	%	-100.0	%	-15.2	%	-5.8	%	0.2	%
Beaver Valley Mall				16.42		0.50		6.40		241	9.68	%	-2.1	%	1.2	%	1.6	%	-0.4	%	-0.1	%
Echelon Mall				21.83		0.28		8.60		207	14.84	%	-7.7	%	26.4	%	-29.3	%	-6.3	%	-1.5	%
Schuylkill Mall				11.47		0.23		2.42		197	7.17	%	11.1	%	-6.3	%	-17.1	%	-7.1	%	0.8	%

Weighted Average	34.0	%	$	18.85	$	0.61	$	6.71	$	259	10.10	%	7.1	%	6.1	%	2.1	%	2.3	%	0.3	%

Enclosed Malls weighted average			$	23.31	$	0.86	$	9.16	$	328	10.17	%	3.1	%	8.9	%	1.6	%	1.3	%	0.1	%
Wholly Owned Properties			$	23.11	$	0.89	$	9.15	$	322	10.29	%	2.7	%	10.5	%	1.4	%	1.4	%	0.1	%
Partnership Properties			$	26.37	$	0.36	$	9.28	$	441	8.17	%	9.4	%	-33.6	%	4.1	%	9.2	%	-0.1	%
PRI-managed			$	23.11	$	0.89	$	9.15	$	322	10.29	%	2.7	%	10.5	%	1.4	%	1.4	%	0.1	%
Non PRI-managed			$	26.37	$	0.36	$	9.28	$	441	8.17	%	9.4	%	-33.6	%	4.1	%	9.2	%	-0.1	%
Same Properties/Existing			$	23.44	$	0.89	$	9.24	$	328	10.23	%	3.7	%	11.8	%	2.5	%	1.5	%	0.2	%
New			$	22.14	$	0.67	$	8.47	$	323	9.69	%	N/A		N/A		N/A		N/A		N/A
Continuing Operations			$	23.74	$	0.90	$	9.40	$	330	10.31	%	3.6	%	11.8	%	2.6	%	1.6	%	0.2	%
Discontinued Operations			$	11.47	$	0.23	$	2.42	$	197	7.17	%	11.1	%	-6.3	%	-17.1	%	-7.1	%	0.8	%


	Q204
	Avg Base Rent psf (1)		Avg% Rent psf (1)		Additional Charges psf		Avg Comp Sales psf		Occup. Cost Ratio
Sales per square foot above $400
Lehigh Valley Mall	$	29.03	$	0.58	$	10.05	$	432	9.19	%
Patrick Henry Mall		31.01		1.75		10.49		437	9.90	%
The Gallery at Market East II		N/A		N/A		N/A		N/A	N/A
Cherry Hill Mall		35.81		0.94		17.60		422	12.88	%
Willow Grove Park		37.92		0.30		18.91		406	14.07	%

Weighted Average	$	33.63	$	0.83	$	14.65	$	424	11.60	%

Sales per square foot between $350 - $400
Dartmouth Mall	$	19.80	$	1.37	$	7.61	$	389	7.40	%
The Mall at Prince Georges		23.78		1.34		12.66		374	10.10	%
Moorestown Mall		24.91		0.93		13.68		345	11.45	%
Jacksonville Mall		21.29		1.54		5.78		371	7.71	%
Capital City Mall		21.90		0.87		6.27		351	8.27	%
Exton Square Mall		34.77		0.71		15.04		382	13.22	%

Weighted Average	$	24.64	$	1.11	$	10.46	$	3.73	9.72	%

Sales per square foot between $300 - $350
The Gallery at Market East I	$	33.67	$	0.54	$	9.77	$	351	12.53	%
Viewmont Mall		22.25		1.70		6.83		350	8.79	%
Wyoming Valley Mall		23.11		0.49		7.46		309	10.05	%
Valley Mall		18.06		0.90		5.92		314	7.92	%
Valley View Mall		23.03		0.52		13.62		309	12.03	%
Palmer Park Mall		21.31		1.10		9.86		328	9.84	%
Cumberland Mall		N/A		N/A		N/A		N/A	N/A
Magnolia Mall		24.58		0.36		10.38		310	11.40	%
Logan Valley Mall		20.46		1.52		7.33		296	9.90	%

Weighted Average	$	22.67	$	0.92	$	8.43	$	319	10.05	%

Sales per square foot under $300
Orlando Fashion Square		N/A		N/A		N/A		N/A	N/A
Phillipsburg Mall	$	22.66	$	0.67	$	10.16	$	287	11.67	%
Francis Scott Key Mall		21.06		0.66		7.02		273	10.53	%
North Hanover Mall		19.60		1.35		7.98		271	10.68	%
Nittany Mall		20.24		0.98		7.44		254	11.28	%
South Mall		13.20		0.47		3.40		280	6.10	%
Wiregrass Mall		20.24		0.52		7.88		258	11.10	%
Gadsden Mall		N/A		N/A		N/A		N/A	N/A
Laurel Mall		13.41		0.45		6.47		264	7.70	%
New River Valley Mall		19.22		0.49		3.74		253	9.27	%
Washington Crown Center		16.18		0.33		4.82		256	8.33	%
Crossroads Mall		16.65		0.87		7.20		252	9.81	%
Lycoming Mall		14.40		1.02		4.52		249	8.01	%
Uniontown Mall		13.98		0.85		4.80		252	7.79	%
Chambersburg Mall		19.80		0.09		5.42		243	10.42	%
Plymouth Meeting Mall		18.55		0.42		8.23		258	10.54	%
Beaver Valley Mall		16.77		0.50		6.29		242	9.74	%
Echelon Mall		23.66		0.22		12.16		221	16.31	%
Schuylkill Mall		10.33		0.24		2.92		212	6.36	%

Weighted Average	$	17.59	$	0.57	$	6.57	$	253	9.76	%


Enclosed Malls weighted average	$	22.61	$	0.79	$	9.02	$	323	10.03	%

Wholly Owned Properties	$	22.50	$	0.81	$	9.02	$	318	10.17	%
Partnership Properties	$	24.10	$	0.54	$	8.92	$	404	8.31	%
PRI-managed	$	22.50	$	0.81	$	9.02	$	318	10.17	%
Non PRI-managed	$	24.10	$	0.54	$	8.92	$	404	8.31	%
Same Properties/Existing	$	22.61	$	0.79	$	9.02	$	323	10.03	%
New		N/A		N/A		N/A		N/A	N/A
Continuing Operations	$	22.92	$	0.81	$	9.17	$	325	10.11	%
Discontinued Operations	$	10.33	$	0.24	$	2.92	$	212	6.36	%

(1)	Base rent is actual for Q205. Additional charges and % rent are projections for 2005.

(2)	Average comparable sales for Q204 are actual.

PAGE 27

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

Power Centers

(Includes Non-Anchor Owned Space)


	Q205						% Change						Q204
	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	$	20.70	$	—	$	2.23	0.2	%	N/A		13.5	%	$	20.66	$	—	$	1.96
Creekview Shopping Center		14.47		—		2.53	0.7	%	N/A		-7.2	%		14.37		—		2.72
Northeast Tower Center		14.20		—		3.31	3.8	%	N/A		8.8	%		13.68		—		3.04
Paxton Towne Center		16.12		—		2.87	0.1	%	N/A		18.1	%		16.10		—		2.43
The Court at Oxford Valley		15.37		—		4.11	0.0	%	N/A		5.3	%		15.37		—		3.90
Red Rose Commons		13.86		0.06		3.31	0.0	%	-2.9	%	3.2	%		13.86		0.06		3.21
Whitehall Mall		10.50		0.34		4.11	-1.0	%	9.5	%	28.8	%		10.61		0.31		3.19
Metroplex Shopping Center		18.13		—		3.66	0.0	%	N/A		2.3	%		18.13		—		3.58

Power Centers weighted average	$	15.47	$	0.05	$	3.42	0.5	%	5.7	%	8.2	%	$	15.39	$	0.04	$	3.16

Wholly Owned Properties	$	16.07	$	—	$	2.80	1.3	%	N/A		8.9	%	$	15.86	$	—	$	2.58

Partnership Properties	$	15.13	$	0.07	$	3.77	0.0	%	5.1	%	7.7	%	$	15.12	$	0.07	$	3.50

PRI-managed	$	16.07	$	—	$	2.80	1.3	%	N/A		8.9	%	$	15.86	$	—	$	2.58

Non PRI-managed	$	15.13	$	0.07	$	3.77	0.0	%	5.1	%	7.7	%	$	15.12	$	0.07	$	3.50

Same Properties/Existing	$	15.47	$	0.05	$	3.42	0.5	%	5.7	%	8.2	%	$	15.39	$	0.04	$	3.16

New		N/A		N/A		N/A	N/A		N/A		N/A			N/A		N/A		N/A

⁽¹⁾	Base rent is actual for Q205. Additional charges and % rent are projections for 2005.

Occupancy


	Q205								Change in % Occupancy
	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	%
Creekview Shopping Center	100.0	%	0.0	%	100.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%
Northeast Tower Center	95.1	%	4.9	%	91.9	%	8.1	%	-4.9	%	4.9	%	-8.1	%	8.1	%
Paxton Towne Center	92.1	%	7.9	%	87.9	%	12.1	%	0.0	%	0.0	%	0.0	%	0.0	%
The Court at Oxford Valley	100.0	%	0.0	%	100.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%
Red Rose Commons	99.2	%	0.8	%	99.2	%	0.8	%	0.0	%	0.0	%	0.0	%	0.0	%
Whitehall Mall	95.8	%	4.2	%	90.5	%	9.5	%	0.1	%	-0.1	%	0.2	%	-0.2	%
Metroplex Shopping Center	100.0	%	0.0	%	100.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%

Power Centers weighted average	97.4	%	2.6	%	96.1	%	3.9	%	-0.6	%	0.6	%	-0.7	%	0.7	%

Wholly Owned Properties	95.8	%	4.2	%	93.1	%	6.9	%	-1.6	%	1.6	%	-2.0	%	2.0	%

Partnership Properties	98.6	%	1.4	%	98.0	%	2.0	%	0.1	%	-0.1	%	0.1	%	-0.1	%

PRI-managed	95.8	%	4.2	%	93.1	%	6.9	%	-1.6	%	1.6	%	-2.0	%	2.0	%

Non PRI-managed	98.6	%	1.4	%	98.0	%	2.0	%	0.1	%	-0.1	%	0.1	%	-0.1	%

Same Properties/Existing	97.4	%	2.6	%	96.1	%	3.9	%	-0.6	%	0.6	%	-0.7	%	0.7	%

New	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A


	Q204
	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	%
Creekview Shopping Center	100.0	%	0.0	%	100.0	%	0.0	%
Northeast Tower Center	100.0	%	0.0	%	100.0	%	0.0	%
Paxton Towne Center	92.1	%	7.9	%	87.9	%	12.1	%
The Court at Oxford Valley	100.0	%	0.0	%	100.0	%	0.0	%
Red Rose Commons	99.2	%	0.8	%	99.2	%	0.8	%
Whitehall Mall	95.7	%	4.3	%	90.4	%	9.6	%
Metroplex Shopping Center	100.0	%	0.0	%	100.0	%	0.0	%

Power Centers weighted average	98.0	%	2.0	%	96.8	%	3.2	%

Wholly Owned Properties	97.3	%	2.7	%	95.1	%	4.9	%

Partnership Properties	98.5	%	1.5	%	97.9	%	2.1	%

PRI-managed	97.3	%	2.7	%	95.1	%	4.9	%

Non PRI-managed	98.5	%	1.5	%	97.9	%	2.1	%

Same Properties/Existing	98.0	%	2.0	%	96.8	%	3.2	%

New	N/A		N/A		N/A		N/A

PAGE 28

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

Strip Centers

(Includes Non-Anchor Owned Space)


	Q205						% Change					Q204
	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	$	16.12	$	—	$	2.04	3.9	%	N/A	-48.4	%	$	15.51	$	—	$	3.96
Festival at Exton		10.35		—		3.86	-38.4	%	N/A	-2.1	%		16.81		—		3.95
The Commons at Magnolia		13.21		—		3.47	1.6	%	N/A	69.0	%		13.00		—		2.05
South Blanding Village		8.47		—		2.64	-8.0	%	N/A	39.6	%		9.20		—		1.89
Springfield Park I & II		19.67		—		7.95	11.1	%	N/A	44.2	%		17.71		—		5.51

Strip Centers weighted average	$	13.18	$	—	$	3.56	-11.4	%	N/A	1.7	%	$	14.88	$	—	$	3.50

Wholly Owned Properties	$	12.45	$	—	$	3.06	-13.9	%	N/A	-4.4	%	$	14.46	$	—	$	3.20
Partnership Properties	$	19.67	$	—	$	7.95	11.1	%	N/A	44.2	%	$	17.71	$	—	$	5.51

PRI-managed	$	13.18	$	—	$	3.56	-11.4	%	N/A	1.7	%	$	14.88	$	—	$	3.50
Non PRI-managed		N/A		N/A		N/A	N/A		N/A	N/A			N/A		N/A		N/A

Same Properties/Existing	$	13.18	$	—	$	3.56	-11.4	%	N/A	1.7	%	$	14.88	$	—	$	3.50
New		N/A		N/A		N/A	N/A		N/A	N/A			N/A		N/A		N/A

⁽¹⁾	Base rent is actual for Q205. Additional charges and % rent are projections for 2005.

Occupancy


	Q205								Change in % Occupancy
	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	%	1.8	%	-1.8	%	3.0	%	-3.0	%
Festival at Exton	58.3	%	41.7	%	75.7	%	24.3	%	-37.3	%	37.3	%	-16.6	%	16.6	%
The Commons at Magnolia	100.0	%	0.0	%	100.0	%	0.0	%	2.4	%	-2.4	%	4.8	%	-4.8	%
South Blanding Village	97.9	%	2.1	%	93.3	%	6.7	%	-1.1	%	1.1	%	-3.7	%	3.7	%
Springfield Park I & II	84.2	%	15.8	%	53.7	%	46.3	%	-6.8	%	6.8	%	-19.7	%	19.7	%

Strip Centers weighted average	85.8	%	14.2	%	83.6	%	16.4	%	-9.9	%	9.9	%	-7.1	%	7.1	%

Wholly Owned Properties	86.2	%	13.8	%	89.2	%	10.8	%	-10.8	%	10.8	%	-4.7	%	4.7	%
Partnership Properties	84.2	%	15.8	%	53.7	%	46.3	%	-6.8	%	6.8	%	-19.7	%	19.7	%

PRI-managed	85.8	%	14.2	%	83.6	%	16.4	%	-9.9	%	9.9	%	-7.1	%	7.1	%
Non PRI-managed	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A

Same Properties/Existing	85.8	%	14.2	%	83.6	%	16.4	%	-9.9	%	9.9	%	-7.1	%	7.1	%
New	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A


	Q204
	Total w/Anchor % Leased		Total w/Anchor % Available		In-Line only (Non-Anchor) % Leased		In-Line (Non-Anchor) % Available
Crest Plaza Shopping Center	96.2	%	3.8	%	93.4	%	6.6	%
Festival at Exton	95.5	%	4.5	%	92.3	%	7.7	%
The Commons at Magnolia	97.6	%	2.4	%	95.2	%	4.8	%
South Blanding Village	99.1	%	0.9	%	96.9	%	3.1	%
Springfield Park I & II	90.9	%	9.1	%	73.5	%	26.5	%

Strip Centers weighted average	95.7	%	4.3	%	90.7	%	9.3	%

Wholly Owned Properties	97.0	%	3.0	%	93.9	%	6.1	%
Partnership Properties	90.9	%	9.1	%	73.5	%	26.5	%

PRI-managed	95.7	%	4.3	%	90.7	%	9.3	%
Non PRI-managed	N/A		N/A		N/A		N/A

Same Properties/Existing	95.7	%	4.3	%	90.7	%	9.3	%
New	N/A		N/A		N/A		N/A

PAGE 29

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

Retail Portfolio

(Includes Non-Anchor Owned Space)


	Q205						% Change						Q204
	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	$	23.31	$	0.86	$	9.16	3.1	%	8.9	%	1.6	%	$	22.61	$	0.79	$	9.02
Power Centers weighted average	$	15.47	$	0.05	$	3.42	0.5	%	5.7	%	8.2	%	$	15.39	$	0.04	$	3.16
Strip Centers weighted average	$	13.18	$	—	$	3.56	-11.4	%	N/A		1.7	%	$	14.88	$	—	$	3.50

Retail Portfolio weighted average	$	21.88	$	0.72	$	8.15	3.1	%	10.8	%	3.1	%	$	21.21	$	0.65	$	7.90

Wholly Owned Properties	$	22.42	$	0.82	$	8.59	2.7	%	11.7	%	2.3	%	$	21.82	$	0.73	$	8.41
Partnership Properties	$	18.87	$	0.17	$	5.63	4.4	%	-24.8	%	6.5	%	$	18.07	$	0.22	$	5.29

PRI-managed	$	22.41	$	0.81	$	8.59	2.8	%	11.8	%	2.4	%	$	21.80	$	0.73	$	8.40
Non PRI-managed	$	18.86	$	0.17	$	5.60	4.3	%	-25.1	%	6.0	%	$	18.08	$	0.23	$	5.29

Same Properties/Existing	$	21.86	$	0.72	$	8.12	3.0	%	11.5	%	2.7	%	$	21.21	$	0.65	$	7.90
New	$	22.14	$	0.67	$	8.47	N/A		N/A		N/A			N/A		N/A		N/A

⁽¹⁾	Base rent is actual for Q205. Additional charges and % rent are projections for 2005.

Occupancy

(Includes Only Owned Space)


	Q205								Change in % Occupancy
	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	90.5	%	9.5	%	85.4	%	14.6	%	-0.8	%	0.8	%	-2.4	%	2.4	%
Power Centers weighted average	97.4	%	2.6	%	96.1	%	3.9	%	-0.6	%	0.6	%	-0.7	%	0.7	%
Strip Centers weighted average	85.8	%	14.2	%	83.6	%	16.4	%	-9.9	%	9.9	%	-7.1	%	7.1	%

Retail Portfolio weighted average	91.2	%	8.8	%	86.8	%	13.2	%	-1.1	%	1.1	%	-2.4	%	2.4	%

Wholly Owned Properties	90.6	%	9.4	%	85.9	%	14.1	%	-1.2	%	1.2	%	-2.7	%	2.7	%
Partnership Properties	95.5	%	4.5	%	92.7	%	7.3	%	0.0	%	0.0	%	-0.1	%	0.1	%

PRI-managed	90.6	%	9.4	%	85.8	%	14.2	%	-1.2	%	1.2	%	-2.8	%	2.8	%
Non PRI-managed	96.0	%	4.0	%	93.6	%	6.4	%	0.2	%	-0.2	%	0.4	%	-0.4	%

Same Properties/Existing	91.0	%	9.0	%	87.0	%	13.0	%	-1.3	%	1.3	%	-2.3	%	2.3	%
New	93.0	%	7.0	%	85.2	%	14.8	%	N/A		N/A		N/A		N/A


	Q204
	Total w/Anchor % Leased		Total w/Anchor % Available		In-Line only (Non-Anchor) % Leased		In-Line (Non-Anchor) % Available
Enclosed Malls weighted average	91.3	%	8.7	%	87.8	%	12.2	%
Power Centers weighted average	98.0	%	2.0	%	96.8	%	3.2	%
Strip Centers weighted average	95.7	%	4.3	%	90.7	%	9.3	%

Retail Portfolio weighted average	92.3	%	7.7	%	89.3	%	10.7	%

Wholly Owned Properties	91.8	%	8.2	%	88.6	%	11.4	%
Partnership Properties	95.5	%	4.5	%	92.8	%	7.2	%

PRI-managed	91.8	%	8.2	%	88.5	%	11.5	%
Non PRI-managed	95.7	%	4.3	%	93.2	%	6.8	%

Same Properties/Existing	92.3	%	7.7	%	89.3	%	10.7	%
New	N/A		N/A		N/A		N/A

*	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 30

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

PREIT Services, LLC/ PREIT-RUBIN Inc.

PREIT Services, LLC and PREIT-RUBIN Inc. are the Company’s arms for comprehensive development and management of retail and commercial properties. PREIT-RUBIN Inc. provides third party management for 11 properties representing approximately 2.1 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


	June 30, 2005						March 31, 2005						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	45	29,331,131	4	254,791	49	29,585,922	45	29,427,853	4	254,791	49	29,682,644	—		(96,722	)	—		—		—		(96,722	)
Non-PREIT Owned	9	1,697,460	2	352,819	11	2,050,279	9	1,697,666	3	757,238	12	2,454,904	—		(206	)	(1	)	(404,419	)	(1	)	(404,625	)

TOTAL	54	31,028,591	6	607,610	60	31,636,201	54	31,125,519	7	1,012,029	61	32,137,548	—		(96,928	)	(1	)	(404,419	)	(1	)	(501,347	)

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	0	—	—	—	—	—	1	503,716	1	119,482	2	623,198	(1	)	(503,716	)	(1	)	(119,482	)	(2	)	(623,198	)

Asset Managed Portfolio
PREIT-Owned	6	4,079,128	—	—	6	4,079,128	6	4,078,965	—	—	6	4,078,965	—		163		—		—		—		163
Non-PREIT Owned	—	—	—	—	—	—	—		—	—	—	—	—		—		—		—		—		—

TOTAL	6	4,079,128	—	—	6	4,079,128	6	4,078,965	—	—	6	4,078,965	—		163		—		—		—		163

Total Portfolio
PREIT-Owned	51	33,410,259	4	254,791	55	33,665,050	51	33,506,818	4	254,791	55	33,761,609	—		(96,559	)	—		—		—		(96,559	)
Non-PREIT Owned	9	1,697,460	2	352,819	11	2,050,279	10	2,201,382	4	876,720	14	3,078,102	(1	)	(503,922	)	(2	)	(523,901	)	(3	)	(1,027,823	)

TOTAL	60	35,107,719	6	607,610	66	35,715,329	61	35,708,200	8	1,131,511	69	36,839,711	(1	)	(600,481	)	(2	)	(523,901	)	(3	)	(1,124,382	)

PAGE 31

Pennsylvania REIT

FLASH REPORT (June 30, 2005)

QUARTERLY COMPARISON


							Q2 05 (3 months ended 6/30/05)																	Q2 04 (3 months ended 6/30/04)
	Malls			Power and Strip Centers			Retail			Corporate/Other Properties			TOTAL			% Change		Malls			Power and Strip Centers			Retail			Corporate/Other Properties			TOTAL
Real Estate Revenues:

Same Store	$	90,441,076		$	9,463,615		$	99,904,691		$	115,021		$	100,019,712		-1.6	%	$	91,801,765		$	9,728,509		$	101,530,274		$	96,831		$	101,627,105
New		10,054,135			—			10,054,135			45,989			10,100,124		N/A			843,858			—			843,858			—			843,858
Discontinued Operations		51,105			110,277			161,382			—			161,382		-97.4	%		5,732,503			482,587			6,215,090			—			6,215,090

Total Real Estate Revenues		100,546,316			9,573,892			110,120,208			161,010			110,281,218		1.5	%		98,378,126			10,211,096			108,589,222			96,831			108,686,053

Property Operating Expenses:
Same Store		(34,937,845	)		(1,825,832	)		(36,763,677	)		(12,308	)		(36,775,985	)	-0.3	%		(34,649,963	)		(2,207,634	)		(36,857,597	)		(12,275	)		(36,869,872	)
New		(3,996,388	)		—			(3,996,388	)		(7,013	)		(4,003,401	)	N/A			(338,451	)		—			(338,451	)		—			(338,451	)
Discontinued Operations		—			(12,724	)		(12,724	)					(12,724	)	-99.6	%		(3,291,765	)		(73,102	)		(3,364,867	)					(3,364,867	)

Total Property Operating Expenses		(38,934,233	)		(1,838,556	)		(40,772,789	)		(19,321	)		(40,792,110	)	0.5	%		(38,280,179	)		(2,280,736	)		(40,560,915	)		(12,275	)		(40,573,190	)

NOI:
Same Store		55,503,231			7,637,783			63,141,014			102,713			63,243,727		-2.3	%		57,151,802			7,520,875			64,672,677			84,556			64,757,233
New		6,057,747			—			6,057,747			38,976			6,096,723		N/A			505,407			—			505,407			—			505,407
Discontinued Operations		51,105			97,553			148,658			—			148,658		-94.8	%		2,440,738			409,485			2,850,223						2,850,223

NOI		61,612,083			7,735,336			69,347,419			141,689			69,489,108		2.0	%		60,097,947			7,930,360			68,028,307			84,556			68,112,863

OTHER INCOME (EXPENSES):
Management Company Revenue		—			—			—			1,311,720			1,311,720		-24.5	%		—			—			—			1,736,239			1,736,239
Interest Income		—			—			—			254,213			254,213		-41.2	%		—			—			—			432,403			432,403
General & Administrative		—			—														—			—
Corporate Payroll and Benefits		—			—			—			(6,602,799	)		(6,602,799	)	-8.6	%		—			—			—			(7,225,740	)		(7,225,740	)
Other G&A Expenses		—			—			—			(4,041,254	)		(4,041,254	)	-6.4	%		—			—			—			(4,315,831	)		(4,315,831	)

EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA)		61,612,083			7,735,336			69,347,419			(8,936,431	)		60,410,988		2.8	%		60,097,947			7,930,360			68,028,307			(9,288,373	)		58,739,934

Interest Expense		(16,504,123	)		(1,755,307	)		(18,259,430	)		(4,173,465	)		(22,432,895	)	7.8	%		(17,470,567	)		(1,762,392	)		(19,232,959	)		(1,576,215	)		(20,809,174	)
Depreciation and Amortization		(25,626,570	)		(2,495,071	)		(28,121,641	)		(394,640	)		(28,516,281	)	13.6	%		(22,164,641	)		(2,697,447	)		(24,862,088	)		(248,809	)		(25,110,897	)
Gains (Adjustment to Gains) on Sale of Interests in RE		635,966						635,966						635,966		N/A			—			—			—			—			—
DISCONTINUED OPERATIONS
Minority Interest of O.P. Unitholders								—			(47,276	)		(47,276	)	N/A									—			(228,602	)		(228,602	)
Gain (Adjustment to Gains) on Disposition of Discontinued Operations											—			—		N/A									—			—			—

TOTAL DISCONTINUED OPERATIONS		—			—			—			(47,276	)		(47,276	)	N/A			—			—			—			(228,602	)		(228,602	)

Minority Interest in Properties								(40,172	)		—			(40,172	)	-73.9	%		(153,880	)		—			(153,880	)		—			(153,880	)
Minority Interest of O.P. Unit Holders								—			(1,113,584	)		(1,113,584	)	6.5	%								—			(1,045,637	)		(1,045,637	)

NET INCOME		20,117,356			3,484,958			23,602,314			(14,665,396	)		8,896,746		-21.9	%		20,462,739			3,470,521			23,933,260			(12,387,636	)		11,391,744

Gains (Adjustments to Gains) on Sales of Real Estate		(635,966	)					(635,966	)		—			(635,966	)	N/A									—			—			—
Depreciation and Amor. of Real Estate		25,558,816			2,495,071			28,053,887			(65,000	)		27,988,887		13.1	%		22,099,136			2,697,447			24,796,583			(52,460	)		24,744,123
Dividends on Preferred Shares											(3,403,125	)		(3,403,125	)	N/A									—			(3,403,125	)		(3,403,125	)
FFO Adjustments								—			1,160,860			1,160,860		-8.9	%								—			1,274,239			1,274,239

FFO		45,040,206			5,980,029			51,020,235			(16,972,661	)		34,007,402		0.0	%		42,561,875			6,167,968			48,729,843			(14,568,982	)		34,006,981

Adj. Straight Lining of Base Rents		(838,039	)		(158,203	)		(996,242	)		—			(996,242	)	-18.2	%		(1,104,774	)		(113,301	)		(1,218,075	)		—			(1,218,075	)
Recurring Capital Expenditures								(2,533,963	)		—			(2,533,963	)	74.8	%								(1,449,365	)		—			(1,449,365	)
Tenant Allowances								(4,666,764	)		—			(4,666,764	)	390.8	%								(950,906	)		—			(950,906	)
Capitalized Leasing Costs								(935,971	)		—			(935,971	)	43.3	%								(653,232	)		—			(653,232	)
Amortization of Debt Premium								(4,871,898	)		—			(4,871,898	)	0.5	%								(4,848,163	)		—			(4,848,163	)
Amortization of Above-and Below Market Lease Intangibles								260,370			—			260,370		N/A									202,727			—			202,727

FAD							$	37,275,767			(16,972,661	)	$	20,262,934		-19.2	%							$	39,812,829			(14,568,982	)	$	25,089,967

Total Dividends													$	23,485,921		8.7	%													$	21,612,938
Share Price (at close)													$	47.50		38.7	%													$	34.25
Weighted Average Number of Shares														36,024,984		1.4	%														35,516,772
WA number of Shares and O.P. Units														40,711,402		2.9	%														39,545,664

Net Income per Share (diluted)													$	0.14		-33.3	%													$	0.21
FFO/Share and O.P. Units													$	0.84		-2.9	%													$	0.86
FAD/Share and O.P. Units													$	0.50		-21.6	%													$	0.63
Dividend/Share and O.P. Units													$	0.57		5.6	%													$	0.54

Balance Sheet


	Q2 05																	Q2 04
	Malls			Power and Strip Centers			Retail			Corporate/ Other Properties			Total			% Change		Malls			Power and Strip Centers			Retail			Corporate/ Other Properties			Total
Investment in Real Estate, at cost	$	2,457,982,077		$	302,037,930		$	2,760,020,007		$	49,324,463		$	2,809,344,470		7.0	%	$	2,276,713,325		$	317,205,536		$	2,593,918,861		$	30,998,858		$	2,624,917,719
Accumulated Depreciation		(170,226,005	)		(50,565,620	)		(220,791,625	)		(2,139,471	)		(222,931,096	)	49.1	%		(103,713,678	)		(43,694,750	)		(147,408,428	)		(2,101,851	)		(149,510,279	)
Other Assets		237,181,729			27,624,486			264,806,215			62,223,900			327,030,115		-2.7	%		249,079,937			29,382,326			278,462,263			57,541,702			336,003,965

Total Assets	$	2,524,937,801		$	279,096,796		$	2,804,034,597		$	109,408,892		$	2,913,443,489		3.6	%	$	2,422,079,584		$	302,893,112		$	2,724,972,696		$	86,438,709		$	2,811,411,405

Mortgage Notes	$	1,192,964,209		$	92,017,526		$	1,284,981,735		$	—		$	1,284,981,735		-6.6	%	$	1,287,582,355		$	88,565,648		$	1,376,148,003		$	—		$	1,376,148,003
Line of Credit		—			—			—			431,000,000			431,000,000		96.8	%		—			—			—			219,000,000			219,000,000
Other Liabilities		44,200,147			3,374,722			47,574,869			36,247,146			83,822,015		6.0	%		43,172,506			5,131,022			48,303,528			30,769,062			79,072,590

Total Liabilities	$	1,237,164,356		$	95,392,248		$	1,332,556,604		$	467,247,146		$	1,799,803,750		7.5	%	$	1,330,754,861		$	93,696,670		$	1,424,451,531		$	249,769,062		$	1,674,220,593

Minority Interest	$	3,308,606		$	—		$	3,308,606		$	136,782,558		$	140,091,164		4.5	%	$	4,247,705		$	—		$	4,247,705		$	129,841,319		$	134,089,024
Total Shareholders Equity		—			—			—			973,548,575			973,548,575		-2.9	%		—			—			—			1,003,101,788			1,003,101,788

Total Liabilities and Shareholder Equity	$	1,240,472,962		$	95,392,248		$	1,335,865,210		$	1,577,578,279		$	2,913,443,489		3.6	%	$	1,335,002,566		$	93,696,670		$	1,428,699,236		$	1,382,712,169		$	2,811,411,405

NOTE:

A reconciliation of the proportionate consolidation method to GAAP is included on pages 33 to 36.

PAGE 32

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

BALANCE SHEET-RECONCILIATION TO GAAP

(Wholly Owned vs. Partnerships)


	June 30, 2005															December 31, 2004
	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	$	2,760,020,007		$	(131,557,745	)	$	2,628,462,262		$	(8,108,358	)	$	2,620,353,904		$	2,649,708,369		$	(131,343,981	)	$	2,518,364,388		$	(8,108,066	)	$	2,510,256,322
Office/Industrial Properties		4,076,672			—			4,076,672			(4,076,672	)		—			2,504,211			—			2,504,211			(2,504,211	)		—
Land Held for Development		5,937,674			—			5,937,674			—			5,937,674			9,862,704			—			9,862,704			—			9,862,704
Construction In Progress		39,310,117			(3,128,540	)		36,181,577			—			36,181,577			13,494,757			(2,542,307	)		10,952,450			—			10,952,450

TOTAL INVESTMENTS IN REAL ESTATE		2,809,344,470			(134,686,285	)		2,674,658,185			(12,185,030	)		2,662,473,155			2,675,570,041			(133,886,288	)		2,541,683,753			(10,612,277	)		2,531,071,476
Accumulated Depreciation		(222,931,096	)		35,733,665			(187,197,431	)		2,139,471			(185,057,960	)		(184,908,972	)		34,023,363			(150,885,609	)		2,126,931			(148,758,678	)

Net Real Estate		2,586,413,374			(98,952,620	)		2,487,460,754			(10,045,559	)		2,477,415,195			2,490,661,069			(99,862,925	)		2,390,798,144			(8,485,346	)		2,382,312,798

Investment in and Advances to Partnerships		—			27,282,272			27,282,272			—			27,282,272			—			27,243,862			27,243,862			—			27,243,862

		2,586,413,374			(71,670,348	)		2,514,743,026			(10,045,559	)		2,504,697,467			2,490,661,069			(72,619,063	)		2,418,042,006			(8,485,346	)		2,409,556,660

Other Assets:
Cash and Cash Equivalents		30,308,297			(4,589,622	)		25,718,675			—			25,718,675			45,652,723			(5,609,103	)		40,043,620			—			40,043,620
Rents and Other Receivables		42,773,187			(11,147,431	)		31,625,756			—			31,625,756			43,309,818			(11,328,239	)		31,981,579			—			31,981,579
Assets Held for Sale		7,452,350			—			7,452,350			10,045,559			17,497,909			6,835,290			—			6,835,290			8,485,346			15,320,636
Intangible Assets ⁽²⁾		174,376,234			—			174,376,234			—			174,376,234			171,849,678			—			171,849,678			—			171,849,678
Deferred Costs, Prepaid Taxes & Exp. & Other Assets		72,120,047			(6,918,798	)		65,201,249						65,201,249			70,201,174			(7,550,567	)		62,650,607			—			62,650,607

TOTAL OTHER ASSETS		327,030,115			(22,655,851	)		304,374,264			10,045,559			314,419,823			337,848,683			(24,487,909	)		313,360,774			8,485,346			321,846,120

TOTAL ASSETS		2,913,443,489			(94,326,199	)		2,819,117,290			—			2,819,117,290			2,828,509,752			(97,106,972	)		2,731,402,780			—			2,731,402,780

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable		1,235,818,809			(106,387,137	)		1,129,431,672			(17,113,872	)		1,112,317,800			1,269,992,376			(107,513,205	)		1,162,479,171			(17,399,761	)		1,145,079,410
Mortgage Debt Premium (3)		49,162,926			—			49,162,926			—			49,162,926			56,134,624			—			56,134,624			—			56,134,624
Bank Loans Payable		431,000,000			—			431,000,000			—			431,000,000			271,000,000			—			271,000,000			—			271,000,000
Assets Held for Sale		1,323,289			—			1,323,289			17,113,872			18,437,161			1,164,210			—			1,164,210			17,399,761			18,563,971
Other Liabilities ⁽⁴⁾		82,498,726			12,060,938			94,559,664			—			94,559,664			93,783,623			10,406,233			104,189,856			—			104,189,856

TOTAL LIABILITIES		1,799,803,750			(94,326,199	)		1,705,477,551			—			1,705,477,551			1,692,074,833			(97,106,972	)		1,594,967,861			—			1,594,967,861

Minority Interest		140,091,164			—			140,091,164			—			140,091,164			131,968,917			—			131,968,917			—			131,968,917

Shareholders’ Equity:
Shares of Beneficial Interest at $1 Par		36,511,624			—			36,511,624			—			36,511,624			36,272,160			—			36,272,160			—			36,272,160
Preferred Shares at $0.01 Par		24,750			—			24,750			—			24,750			24,750			—			24,750			—			24,750
Capital Contributed in Excess of Par		907,956,954			—			907,956,954			—			907,956,954			899,506,128			—			899,506,128			—			899,506,128
Restricted Stock		(15,193,374	)		—			(15,193,374	)		—			(15,193,374	)		(7,736,812	)		—			(7,736,812	)		—			(7,736,812	)
Accumulated Other Comprehensive Loss		(6,960,974	)		—			(6,960,974	)		—			(6,960,974	)		(1,821,457	)		—			(1,821,457	)		—			(1,821,457	)
Retained Earnings		51,209,595			—			51,209,595			—			51,209,595			78,221,233			—			78,221,233			—			78,221,233

TOTAL SHAREHOLDERS’ EQUITY		973,548,575			—			973,548,575			—			973,548,575			1,004,466,002			—			1,004,466,002			—			1,004,466,002

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,913,443,489		$	(94,326,199	)	$	2,819,117,290		$	—		$	2,819,117,290		$	2,828,509,752		$	(97,106,972	)	$	2,731,402,780		$	—		$	2,731,402,780


	June 30, 2004
	Combined TOTAL (1)			Adjustments to Equity Method			Subtotal			Assets Held for Sale			TOTAL
ASSETS
Investments in Real Estate, at cost
Retail Properties	$	2,593,918,861		$	(136,339,792	)	$	2,457,579,069		$	(96,332,783	)	$	2,361,246,286
Office/Industrial Properties		2,504,211			—			2,504,211			(2,504,211	)		—
Land-Held for Development		9,469,893			—			9,469,893			—			9,469,893
Construction In Progress		19,024,754			(1,505,540	)		17,519,214			—			17,519,214

TOTAL INVESTMENTS IN REAL ESTATE		2,624,917,719			(137,845,332	)		2,487,072,387			(98,836,994	)		2,388,235,393
Accumulated Depreciation		(149,510,279	)		32,847,127			(116,663,152	)		2,101,851			(114,561,301	)

Net Real Estate		2,475,407,440			(104,998,205	)		2,370,409,235			(96,735,143	)		2,273,674,092

Investment in and Advances to Partnerships		—			31,518,234			31,518,234			—			31,518,234

		2,475,407,440			(73,479,971	)		2,402,032,009			(96,332,783	)		2,305,192,326

Other Assets:
Cash and Cash Equivalents		31,885,512			(5,848,731	)		26,036,781						26,036,781
Rents and Other Receivables		34,663,419			(11,069,706	)		23,593,713			—			23,593,713
Assets Held for Sale		37,192,880			—			37,192,880			96,735,143			133,928,023
Intangible Assets ⁽²⁾		171,119,121			—			171,119,121			—			171,119,121
Deferred Costs, Prepaid Taxes & Exp. & Other Assets		61,143,033			(7,583,542	)		53,559,491						53,559,491

TOTAL OTHER ASSETS		336,003,965			(24,501,979	)		311,501,989			96,735,143			408,237,129

TOTAL ASSETS		2,811,411,405			(97,981,950	)		2,713,533,998			—			2,713,429,455

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable		1,310,372,560			(108,594,598	)		1,201,777,962			(59,780,197	)		1,141,997,765
Mortgage Debt Premium (3)		65,775,443			—			65,775,443			(3,882,426	)		61,893,017
Bank Loans Payable		219,000,000			—			219,000,000			—			219,000,000
Assets Held for Sale		4,269,119			—			4,269,119			63,662,623			67,931,742
Other Liabilities ⁽⁴⁾		74,803,471			10,612,648			85,416,119						85,416,119

TOTAL LIABILITIES		1,674,220,593			(97,981,950	)		1,576,238,643			—			1,576,238,643

Minority Interest		134,089,024			—			134,089,024			—			134,089,024

Shareholders’ Equity:
Shares of Beneficial Interest at $1 Par		35,938,305			—			35,938,305			—			35,938,305
Preferred Shares at $0.01 Par		24,750			—			24,750			—			24,750
Capital Contributed in Excess of Par		887,921,188			—			887,921,188			—			887,921,188
Restricted Stock		(9,618,821	)		—			(9,618,821	)		—			(9,618,821	)
Accumulated Other Comprehensive Loss		(1,886,164	)		—			(1,886,164	)		—			(1,886,164	)
Retained Earnings		90,722,530			—			90,722,530			—			90,722,530

TOTAL SHAREHOLDERS’ EQUITY		1,003,101,788			—			1,003,101,788			—			1,003,101,788

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,811,411,405		$	(97,981,950	)	$	2,713,533,998		$	—		$	2,713,429,455

(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 33

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

INCOME STATEMENT-RECONCILIATION TO GAAP ⁽¹⁾

QUARTERLY COMPARISON

(Wholly Owned vs. Partnerships)


	Q2 05 (3 months ended 6/30/05)
	Combined TOTAL ⁽²⁾			Adjustments to Equity Method			Subtotal			Assets Held for Sale			Total			TOTAL % CHANGE
Base Rents	$	71,680,161		$	(5,117,700	)	$	66,562,461		$	(951,401	)	$	65,611,060		7.9	%
Straight-Lining of Base Rents		996,242			(15,963	)		980,279			(5,532	)		974,747		-14.4	%
Percentage Rents		2,261,076			(39,476	)		2,221,600			(65,599	)		2,156,001		64.4	%
Expense Reimbursables		32,301,106			(1,739,809	)		30,561,297			(419,982	)		30,141,315		7.7	%
Lease Termination		617,579			(33,776	)		583,803			—			583,803		N/A
Other Real Estate Revenues		2,425,054			(116,006	)		2,309,048			(24,881	)		2,284,167		10.4	%

TOTAL REAL ESTATE REVENUES		110,281,218			(7,062,730	)		103,218,488			(1,467,395	)		101,751,093		7.9	%

Operating and Maintenance		(30,044,357	)		1,408,065			(28,636,292	)		603,228			(28,033,064	)	12.3	%
Real Estate Taxes		(10,747,753	)		617,021			(10,130,732	)		141,945			(9,988,787	)	7.1	%

TOTAL PROPERTY OPERATING EXPENSES		(40,792,110	)		2,025,086			(38,767,024	)		745,173			(38,021,851	)	10.8	%

NET OPERATING INCOME		69,489,108			(5,037,644	)		64,451,464			(722,222	)		63,729,242		6.3	%

OTHER INCOME (EXPENSES)
Management Company Revenue		1,311,720			—			1,311,720			—			1,311,720		-24.5	%
Interest Income		254,213			—			254,213			—			254,213		-41.2	%
General & Administrative:
Corporate Payroll and Benefits		(6,602,799	)		—			(6,602,799	)		—			(6,602,799	)	-8.6	%
Other G&A Expenses		(4,041,254	)		—			(4,041,254	)		—			(4,041,254	)	-6.4	%

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)		60,410,988			(5,037,644	)		55,373,344			(722,222	)		54,651,122		8.0	%

Interest Expense (1)		(22,432,895	)		2,036,909			(20,395,986	)		310,177			(20,085,809	)	13.1	%
Depreciation & Amortization		(28,516,281	)		1,032,945			(27,483,336	)		—			(27,483,336	)	14.7	%

TOTAL EXPENSES		(50,949,176	)		3,069,854			(47,879,322	)		310,177			(47,569,145	)	14.0	%

Equity in Income of partnerships		—			1,967,790			1,967,790						1,967,790		19.4	%

Gains on Sales of Interests in Real Estate		635,966			—			635,966			—			635,966		N/A

Income before Minority Interest		10,097,778			—			10,097,778			(412,045	)		9,685,733		-8.1	%

Minority Interest in Properties		(40,172	)		—			(40,172	)		—			(40,172	)	-72.7	%
Minority Interest of O.P. Unitholders		(1,113,584	)		—			(1,113,584	)		—			(1,113,584	)	6.5	%

Income from Operations		8,944,022			—			8,944,022			(412,045	)		8,531,977		-8.7	%

Discontinued Operations:
Income from Discontinued Operations		—			—			—			412,045			412,045		-81.9	%
Minority Interest in Properties		—			—			—			—			—		N/A
Minority Interest of O.P. Unitholders		(47,276	)		—			(47,276	)		—			(47,276	)	-79.3	%
Adjustments to Gains on Disposition of Discontinued Operations		—			—			—			—			—		N/A

TOTAL DISCONTINUED OPERATIONS		(47,276	)		—			(47,276	)		412,045			364,769		N/A

NET INCOME	$	8,896,746		$	—		$	8,896,746		$	—		$	8,896,746		-21.9	%


	Q2 04 (3 months ended 6/30/04)
	Combined TOTAL ⁽²⁾			Adjustments to Equity Method			Subtotal			Assets Held for Sale			Total
Base Rents	$	70,940,473		$	(5,295,006	)	$	65,645,467			(4,840,111	)	$	60,805,356
Straight-Lining of Base Rents		1,218,075			(11,480	)		1,206,595			(67,660	)		1,138,935
Percentage Rents		1,295,602			102,372			1,397,974			(86,681	)		1,311,293
Expense Reimbursables		31,793,289			(1,716,739	)		30,076,550			(2,081,799	)		27,994,751
Lease Termination		983,379			—			983,379			(22,410	)		960,969
Other Real Estate Revenues		2,455,235			(254,498	)		2,200,737			(131,461	)		2,069,276

TOTAL REAL ESTATE REVENUES		108,686,053			(7,175,351	)		101,510,702			(7,230,122	)		94,280,580

Operating and Maintenance		(30,069,288	)		1,700,315			(28,368,973	)		3,398,435			(24,970,538	)
Real Estate Taxes		(10,503,902	)		513,124			(9,990,778	)		660,167			(9,330,611	)

TOTAL PROPERTY OPERATING EXPENSES		(40,573,190	)		2,213,439			(38,359,751	)		4,058,602			(34,301,149	)

NET OPERATING INCOME		68,112,863			(4,961,912	)		63,150,951			(3,171,520	)		59,979,431

OTHER INCOME (EXPENSES)
Management Company Revenue		1,736,239			—			1,736,239			—			1,736,239
Interest Income		432,403			—			432,403			—			432,403
General & Administrative:
Corporate Payroll and Benefits		(7,225,740	)		—			(7,225,740	)		—			(7,225,740	)
Other G&A Expenses		(4,315,831	)		—			(4,315,831	)		—			(4,315,831	)

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)		58,739,934			(4,961,912	)		53,778,022			(3,171,520	)		50,606,502

Interest Expense (1)		(20,809,174	)		2,171,992			(18,637,182	)		880,033			(17,757,149	)
Depreciation & Amortization		(25,110,897	)		1,141,390			(23,969,507	)		12,540			(23,956,967	)

TOTAL EXPENSES		(45,920,071	)		3,313,382			(42,606,689	)		892,573			(41,714,116	)

Equity in Income of partnerships					1,648,530			1,648,530						1,648,530

Gains on Sales of Interests in Real Estate		—			—			—			—			—

Income before Minority Interest		12,819,863			—			12,819,863			(2,278,947	)		10,540,916

Minority Interest in Properties		(153,880	)					(153,880	)		6,654			(147,226	)
Minority Interest of O.P. Unitholders		(1,045,637	)		—			(1,045,637	)		—			(1,045,637	)

Income from Operations		11,620,346			—			11,620,346			(2,272,293	)		9,348,053

Discontinued Operations:
Income from Discontinued Operations		—			—			—			2,278,947			2,278,947
Minority Interest in Properties		—			—			—			(6,654	)		(6,654	)
Minority Interest of O.P. Unitholders		(228,602	)		—			(228,602	)		—			(228,602	)
Adjustments to Gains on Disposition of Discontinued Operations		—			—			—			—			—

TOTAL DISCONTINUED OPERATIONS		(228,602	)		—			(228,602	)		2,272,293			2,043,691

NET INCOME	$	11,391,744		$	—		$	11,391,744		$	—		$	11,391,744

⁽¹⁾	Capitalized interest expense of $505,000 is not included in the quarter ended 6/30/05 and $425,000 is not included in the quarter ended 6/30/04.

⁽²⁾

PAGE 34

Pennsylvania REIT

FLASH REPORT-RECONCILIATION TO GAAP (June 30, 2005)

QUARTERLY COMPARISON


	Q2 05 (3 months ended 6/30/05)
	Combined TOTAL			Adjustments to Equity Method			Subtotal			Assets Held for Sale			Total
Real Estate Revenues:
Same Store	$	100,019,712		$	(7,062,730	)	$	92,956,982		$	—		$	92,956,982
New		10,100,124			—			10,100,124			—			10,100,124
Discontinued		161,382			—			161,382			(1,467,395	)		(1,306,013	)

Total Real Estate Revenues		110,281,218			(7,062,730	)		103,218,488			(1,467,395	)		101,751,093

Operating Expenses:
Same Store		(36,775,985	)		2,025,086			(34,750,899	)		—			(34,750,899	)
New		(4,003,401	)		—			(4,003,401	)		—			(4,003,401	)
Discontinued		(12,724	)		—			(12,724	)		745,173			732,449

Total Property Operating Expenses		(40,792,110	)		2,025,086			(38,767,024	)		745,173			(38,021,851	)

NOI:
Same Store		63,243,727			(5,037,644	)		58,206,083			—			58,206,083
New		6,096,723			—			6,096,723			—			6,096,723
Discontinued		148,658			—			148,658			(722,222	)		(573,564	)

NOI		69,489,108			(5,037,644	)		64,451,464			(722,222	)		63,729,242

OTHER INCOME (EXPENSES):
Management Company Revenue		1,311,720			—			1,311,720			—			1,311,720
Interest Income		254,213			—			254,213			—			254,213
General & Administrative:
Corporate Payroll and Benefits		(6,602,799	)		—			(6,602,799	)		—			(6,602,799	)
Other G&A Expenses		(4,041,254	)		—			(4,041,254	)		—			(4,041,254	)

EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA)		60,410,988			(5,037,644	)		55,373,344			(722,222	)		54,651,122

Interest Expense		(22,432,895	)		2,036,909			(20,395,986	)		310,177			(20,085,809	)
Depreciation and Amortization		(28,516,281	)		1,032,945			(27,483,336	)		—			(27,483,336	)
Gains (adjustment to gains) on Sale of Interests in RE		635,966			—			635,966			—			635,966
Equity in income of partnerships		—			1,967,790			1,967,790			—			1,967,790
DISCONTINUED OPERATIONS:		—			—			—
Income from Disposed Real Estate		—			—			—			412,045			412,045
Minority Interest in properties		—			—			—			—			—
Minority Interest of O.P. Unitholders		(47,276	)		—			(47,276	)		—			(47,276	)
Gains (adjustments to gains) on Disposition of Discontinued Operations		—			—			—						—

TOTAL DISCONTINUED OPERATIONS		(47,276	)		—			(47,276	)		412,045			364,769

Minority Interest in Properties		(40,172	)		—			(40,172	)		—			(40,172	)
Minority Interest of OP Unit Holders		(1,113,584	)		—			(1,113,584	)		—			(1,113,584	)

NET INCOME		8,896,746			—			8,896,746			—			8,896,746

Gain on Sale of Real Estate		(635,966	)		—			(635,966	)		—			(635,966	)
Depreciation and Amor. of Real Estate		27,988,887			—			27,988,887			—			27,988,887
Dividends on preferred shares		(3,403,125	)		—			(3,403,125	)		—			(3,403,125	)
FFO Adjustments		1,160,860			—			1,160,860			—			1,160,860

FFO		34,007,402			—			34,007,402			—			34,007,402

Adj. Straight Lining of Base Rents		(996,242	)		—			(996,242	)		—			(996,242	)
Recurring Capital Expenditures		(2,533,963	)		—			(2,533,963	)		—			(2,533,963	)
Tenant Allowances		(4,666,764	)		—			(4,666,764	)		—			(4,666,764	)
Capitalized Leasing Costs		(935,971	)		—			(935,971	)		—			(935,971	)
Amortization of Debt Premium		(4,871,898	)		—			(4,871,898	)		—			(4,871,898	)
Amortization of Above-and Below Market Lease Intangibles		260,370			—			260,370			—			260,370

FAD	$	20,262,934		$	—		$	20,262,934		$	—		$	20,262,934

Total Dividends													$	23,485,921
Share Price (at close)													$	47.50
Weighted Average Number of Shares														36,024,984
WA number of Shares and OP Units														40,711,402

Net Income per Share (diluted)													$	0.14
FFO/Share and OP Units													$	0.84
FAD/Share and OP Units													$	0.50
Dividend/Share and OP Units													$	0.57


	Q2 04 (3 months ended 6/30/04)
	Combined TOTAL			Adjustments to Equity Method			Subtotal			Assets Held for Sale			Total
Real Estate Revenues:
Same Store	$	101,627,105		$	(7,008,014	)	$	94,619,091		$	—		$	94,619,091
New		843,858			—			843,858			—			843,858
Discontinued		6,215,090			(167,337	)		6,047,753			(7,230,122	)		(1,182,369	)

Total Real Estate Revenues		108,686,053			(7,175,351	)		101,510,702			(7,230,122	)		94,280,580

Operating Expenses:
Same Store		(36,869,872	)		2,140,412			(34,729,460	)		—			(34,729,460	)
New		(338,451	)		—			(338,451	)		—			(338,451	)
Discontinued		(3,364,867	)		73,027			(3,291,840	)		4,058,602			766,762

Total Property Operating Expenses		(40,573,190	)		2,213,439			(38,359,751	)		4,058,602			(34,301,149	)

NOI:
Same Store		64,757,233			(4,867,602	)		59,889,631			—			59,889,631
New		505,407			—			505,407			—			505,407
Discontinued		2,850,223			(94,310	)		2,755,913			(3,171,520	)		(415,607	)

NOI		68,112,863			(4,961,912	)		63,150,951			(3,171,520	)		59,979,431

OTHER INCOME (EXPENSES):
Management Company Revenue		1,736,239			—			1,736,239			—			1,736,239
Interest Income		432,403			—			432,403			—			432,403
General & Administrative:														—
Corporate Payroll and Benefits		(7,225,740	)		—			(7,225,740	)		—			(7,225,740	)
Other G&A Expenses		(4,315,831	)		—			(4,315,831	)		—			(4,315,831	)

EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA)		58,739,934			(4,961,912	)		53,778,022			(3,171,520	)		50,606,502

Interest Expense		(20,809,174	)		2,171,992			(18,637,182	)		880,033			(17,757,149	)
Depreciation and Amortization		(25,110,897	)		1,141,390			(23,969,507	)		12,540			(23,956,967	)
Gains (adjustment to gains) on Sale of Interests in RE		—			—			—			—			—
Equity in income of partnerships					1,648,530			1,648,530			—			1,648,530
DISCONTINUED OPERATIONS:								—
Income from Disposed Real Estate		—			—			—			2,278,947			2,278,947
Minority Interest in properties											(6,654	)		(6,654	)
Minority Interest of O.P. Unitholders		(228,602	)		—			(228,602	)		—			(228,602	)
Gains (adjustments to gains) on Disposition of Discontinued Operations		—						—			—			—

TOTAL DISCONTINUED OPERATIONS		(228,602	)		—			(228,602	)		2,272,293			2,043,691

Minority Interest in Properties		(153,880	)		—			(153,880	)		6,654			(147,226	)
Minority Interest of OP Unit Holders		(1,045,637	)		—			(1,045,637	)		—			(1,045,637	)

NET INCOME		11,391,744			—			11,391,744			—			11,391,744

Gain on Sale of Real Estate		—			—			—			—			—
Depreciation and Amor. of Real Estate		24,744,123			—			24,744,123			—			24,744,123
Dividends on preferred shares		(3,403,125	)		—			(3,403,125	)		—			(3,403,125	)
FFO Adjustments		1,274,239			—			1,274,239			—			1,274,239

FFO		34,006,981			—			34,006,981			—			34,006,981

Adj. Straight Lining of Base Rents		(1,218,075	)		—			(1,218,075	)		—			(1,218,075	)
Recurring Capital Expenditures		(1,449,365	)		—			(1,449,365	)		—			(1,449,365	)
Tenant Allowances		(950,906	)		—			(950,906	)					(950,906	)
Capitalized Leasing Costs		(653,232	)		—			(653,232	)					(653,232	)
Amortization of Debt Premium		(4,848,163	)		—			(4,848,163	)					(4,848,163	)
Amortization of Above-and Below Market Lease Intangibles		202,727			—			202,727			—			202,727

FAD	$	25,089,967		$	—		$	25,089,967		$	—		$	25,089,967

Total Dividends													$	21,612,938
Share Price (at close)													$	34.25
Weighted Average Number of Shares														35,516,772
WA number of Shares and OP Units														39,545,664

Net Income per Share (diluted)													$	0.21
FFO/Share and OP Units													$	0.86
FAD/Share and OP Units													$	0.63
Dividend/Share and OP Units													$	0.54

Balance Sheet


	Combined Total			Adjustments to Equity Method			Subtotal			Assets Held for Sale			TOTAL
Investment in Real Estate, at cost	$	2,809,344,470		$	(134,686,285	)	$	2,674,658,185		$	(12,185,030	)	$	2,662,473,155
Accumulated Depreciation		(222,931,096	)		35,733,665			(187,197,431	)		2,139,471			(185,057,960	)
Investment in and Advances to Partnership		—			27,282,272			27,282,272			—			27,282,272
Other Assets		327,030,115			(22,655,851	)	$	304,374,264			10,045,559			314,419,823

Total Assets	$	2,913,443,489		$	(94,326,199	)	$	2,819,117,290		$	—		$	2,819,117,290

Mortgage Notes	$	1,284,981,735		$	(106,387,137	)	$	1,178,594,598		$	(17,113,872	)	$	1,161,480,726
Line of Credit		431,000,000			—			431,000,000			—			431,000,000
Other Liabilities		83,822,015			12,060,938			95,882,953			17,113,872			112,996,825

Total Liabilities	$	1,799,803,750		$	(94,326,199	)	$	1,705,477,551		$	—		$	1,705,477,551

Minority Interest	$	140,091,164		$	—		$	140,091,164		$	—		$	140,091,164
Total Shareholders Equity		973,548,575			—			973,548,575			—			973,548,575

Total Liabilities and Shareholder Equity	$	2,913,443,489		$	(94,326,199	)	$	2,819,117,290		$	—		$	2,819,117,290

Balance Sheet


	Combined Total			Adjustments to Equity Method			Subtotal			Assets Held for Sale			TOTAL
Investment in Real Estate, at cost	$	2,624,917,719		$	(137,845,332	)	$	2,487,072,387			(98,836,994	)	$	2,388,235,393
Accumulated Depreciation		(149,510,279	)		32,847,127			(116,663,152	)		2,101,851			(114,561,301	)
Investment in and Advances to Partnership		—			31,518,234			31,518,234			—			31,518,234
Other Assets		336,003,965			(24,501,979	)	$	311,501,986			96,735,143			408,237,129

Total Assets	$	2,811,411,405		$	(97,981,950	)	$	2,713,429,455			—		$	2,713,429,455

Mortgage Notes	$	1,376,148,003		$	(108,594,598	)	$	1,267,553,405		$	(63,662,623	)	$	1,203,890,782
Line of Credit		219,000,000			—			219,000,000		$	—			219,000,000
Other Liabilities		79,072,590			10,612,648			89,685,238			63,662,623			153,347,861

Total Liabilities	$	1,674,220,593		$	(97,981,950	)	$	1,576,238,643			—		$	1,576,238,643

Minority Interest	$	134,089,024		$	—		$	134,089,024		$	—		$	134,089,024
Total Shareholders Equity		1,003,101,788			—			1,003,101,788			—			1,003,101,788

Total Liabilities and Shareholder Equity	$	2,811,411,405		$	(97,981,950	)	$	2,713,429,455			—		$	2,713,429,455

PAGE 35

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2005)

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

The Company believes that net income is the most directly comparable GAAP measurement to FFO. The Company believes that FFO is helpful to management and investors as a measure of operating performance because it excludes various items included in net income that do not relate to or are not indicative of operating performance, such as various non-recurring items that are considered extraordinary under GAAP, gains on sales of 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 is also referred to as Cash Available for Distributions (CAD) or 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 believes that to further understand its liquidity, FAD should be compared with its cash flow from operating activities determined in accordance with GAAP, as presented in its consolidated financial statements. The computation of FAD may not be comparable to FAD reported by other REITs or real estate companies and FAD does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, or as an alternative to net cash flow from operating activities (determined in accordance with GAAP), as a measure of our liquidity.

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.

PAGE 36