8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported) March 2, 2006

Pennsylvania Real Estate Investment Trust

(Exact Name of Registrant as Specified in its Charter)

Pennsylvania	1-6300	23-6216339
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(IRS Employer Identification No.)

The Bellevue, 200 S. Broad Street, Philadelphia, Pennsylvania	19102
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (215) 875-0700

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On March 2, 2006, Pennsylvania Real Estate Investment Trust provided on its web site at www.preit.com its Quarterly Supplemental Disclosure dated December 31, 2005. A copy of the Quarterly Supplemental Disclosure is attached as an exhibit to this report.

The information furnished under this “Item 2.02. Results of Operations and Financial Condition” shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Quarterly Supplemental Disclosure dated December 31, 2005.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
Date: March 7, 2006	By:	/s/ Bruce Goldman
		Bruce Goldman
		Executive Vice President, General Counsel and Secretary

Exhibit Index

99.1 Quarterly Supplemental Disclosure dated December 31, 2005

- 2 -

EX-99.1

Exhibit 99.1

Pennsylvania Real Estate Investment Trust

QUARTERLY SUPPLEMENTAL DISCLOSURE

December 31, 2005

www.preit.com

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

Table of Contents

Company Information	1
Timeline/Recent Developments	2
Stock Information	3
Shareholder Information	4
Market Capitalization and Capital Resources	5
Balance Sheet—Proportionate Consolidation Method	6
Balance Sheet—Property Type	7
Income Statement—Proportionate Consolidation Method- Quarterly Comparison	8
Income Statement—Proportionate Consolidation Method- Annual Comparison	9
Income Statement—Same Store- Quarterly Comparison	10
Income Statement—Same Store- Annual Comparison	11
Income Statement—Retail Property Type- Quarterly Comparison	12
Income Statement—Retail Property Type- Annual Comparison	13
Earnings per Share	14
Funds From Operations and Funds Available for Distribution	15
Key Ratios	16
Property Debt Schedule	17
Debt Amortization Schedule	19
Debt Analysis	20
Debt Ratios	21
Portfolio Summary—Retail	22
Property Acquisitions/Dispositions- Annual Summary	27
Property Development Summary	28
Property Redevelopment Summary	29
Top Twenty Tenants Schedule	30
Lease Expiration Schedule	31
New Lease/Renewal Summary and Analysis	32
Capital Expenditures	33
Retail Overall- Summary and Occupancy	34
Enclosed Mall- Summary and Occupancy	35
Enclosed Mall- Rent Summary	36
Power Center- Summary and Occupancy	37
Strip Center- Summary and Occupancy	38
RECONCILIATION TO GAAP:
Balance Sheet-Reconciliation to GAAP	39
Income Statement-Reconciliation to GAAP- Quarterly	40
Income Statement-Reconciliation to GAAP- Annual	41
Definitions page	42

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 (December 31, 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 December 31, 2005, PREIT’s portfolio consists of 51 retail properties (approximately 34.5 million square feet) in 13 states. PREIT’s portfolio includes 39 shopping malls, 12 strip and power centers and one office property. PREIT is headquartered in Philadelphia, Pennsylvania.

Research Coverage

Company	Analyst	Phone Number
Green Street Advisors	Gregory R. Andrews Ben Yang	(949) 640-8780 (949) 640-8780
JP Morgan	Michael W. Mueller Anthony Paolone Joshua Bederman	(212) 622-6689 (212) 622-6682 (212) 622-6530
Stifel Nicolaus	David M. Fick Nathan Isbee	(410) 539-0000 (410) 454-4143
Lehman Brothers	David Harris Alexander D. Goldfarb	(212) 526-1790 (212) 526-5232

Quarterly Earnings Schedule

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

Quarter	2006 (1)
First Quarter	5/4/2006
Second Quarter	8/3/2006
Third Quarter	11/2/2006
Fourth Quarter	3/1/2007

⁽¹⁾ Tentative dates.

To participate in a quarterly conference call, please contact PREIT’s investor relations department at (215) 875-0735.

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 (December 31, 2005)

Timeline/Recent Developments

Dividends and Distributions:

February 23, 2006, the Board of Trustees of the Company declared a quarterly cash dividend of $0.57 per common share and a regular quarterly dividend of $1.375 per share on its 11.00% senior preferred shares. PREIT also will pay a previously announced Redemption of Rights of $0.001 per common share. All dividends are payable on March 15, 2006 to shareholders of record on March 1, 2006.

January 13, 2006 PREIT announced the tax status of its dividend distributions for 2005.

Acquisitions, dispositions, development and redevelopment activities:

February 9, 2006 PREIT announced that it had completed the acquisition of approximately 540-acres of land parcels known as Springhills in Gainesville, Florida for $21.5 million.

January 3, 2006 PREIT announced that it had acquired Woodland Mall in Grand Rapids, Michigan for $177.4 million.

December 9, 2005 PREIT announced that it had begun construction of a new retail center anchored by The Home Depot (NYSE:HD) and situated on 43 acres at Route 9 and Sunrise Boulevard in Lacey Township, New Jersey.

November 18, 2005, PREIT and Kravco Simon announced that they have completed the acquisition of Springfield Mall in Springfield, Pennsylvania for approximately $103.5 million. PREIT and Kravco Simon will each have a 50% ownership interest in the property.

Financing activities:

February 15, 2006 PREIT announced that it completed a $90 million financing of Valley Mall in Hagerstown, Maryland.

December 9, 2005 PREIT announced that it had completed the refinancing of Willow Grove Park in Willow Grove, Pennsylvania with a new $160 million first mortgage loan.

October 3, 2005, PREIT completed the refinancing of Cherry Hill Mall in Cherry Hill, NJ with a new $200 million first mortgage loan.

Other activities:

February 15, 2006 PREIT scheduled fourth quarter 2005 conference call on Thursday, March 2, 2006.

December 15, 2005, PREIT announced that its Board of Trustees appointed M. Walter D’Alessio as a new trustee of PREIT. Mr. D’Alessio will serve on the Board until PREIT’s next Annual Meeting of Shareholders, at which time he will appear on the ballot with the other Class B trustees for election to a three year term.

October 31, 2005 PREIT announced that its Board of Trustees had authorized a program to repurchase up to $100 million of the Company’s common shares. The program will be in effect until the end of 2007, subject to the Company’s authority to terminate the program earlier.

October 31, 2005 PREIT announced its results for the third quarter and nine months ended September 30, 2005, and its 2006 guidance.

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

PAGE 2

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 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).

	Year 2005			QUARTERS 2005												Year 2004			Quarter 2004 December			Year 2003
				December			September			June			March
Stock Information
High Price	$	50.20		$	42.60		$	50.20		$	48.10		$	43.21		$	43.70		$	43.70		$	36.30
Low Price	$	35.24		$	35.24		$	39.60		$	39.66		$	38.91		$	30.25		$	38.66		$	24.70
Close	$	37.36		$	37.36		$	42.18		$	47.50		$	40.32		$	42.80		$	42.80		$	36.30
Average Daily Trading Volume		209,537			345,222			165,764			119,916			146,698			161,659			123,000			109,892
Shares Outstanding and Market Value Information
Common Shares Outstanding		36,520,715			36,520,715			36,714,465			36,511,624			36,474,699			36,272,162			36,272,162			35,544,265
O.P. Units		4,155,921			4,155,921			4,499,800			4,686,418			4,686,418			4,413,559			4,413,559			3,691,516
Total Shares Outstanding		40,676,636			40,676,636			41,214,265			41,198,042			41,161,117			40,685,721			40,685,721			39,235,781
Weighted Average of Common Shares		36,089,870			36,210,394			36,148,847			36,024,984			35,972,274			35,609,350			35,818,787			20,389,577
Weighted Average of O.P. Units		4,580,421			4,460,657			4,592,689			4,686,418			4,583,338			4,183,059			4,425,874			2,303,449
Weighted Average Common Shares and O.P. Units		40,670,291			40,671,051			40,741,536			40,711,402			40,555,612			39,792,409			40,244,661			22,693,026
Preferred Shares, Nominal Value	$	123,750,000		$	123,750,000		$	123,750,000		$	123,750,000		$	123,750,000		$	123,750,000		$	123,750,000		$	123,750,000
Market Value of Shares (based on closing price)	$	1,643,429,121		$	1,643,429,121		$	1,862,167,698		$	2,080,656,995		$	1,783,366,237		$	1,865,098,859		$	1,865,098,859		$	1,548,008,850
Distribution Information for Common Shares
Dividend per share	$	2.250		$	0.570		$	0.570		$	0.570		$	0.540		$	2.160		$	0.540		$	2.070
Annualized Dividend Yield (1)		6.0	%		6.1	%		5.4	%		4.8	%		5.4	%		5.0	%		5.0	%		5.7	%
Capital Gain Pre-May 6	$	—		$	—		$	—		$	—		$	—		$	0.026		$	0.026		$	0.096
Capital Gain Post-May 5	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	0.213
Section 1250 Gain	$	—		$	—		$	—		$	—		$	—		$	0.026		$	0.026		$	0.480
Return of Capital/Non-Taxable	$	0.175		$	0.044		$	0.044		$	0.044		$	0.043		$	0.517		$	0.182		$	0.085
Qualified 5 Year Gain (incl. in cap. Gain)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Ordinary Income	$	2.075		$	0.526		$	0.526		$	0.526		$	0.497		$	1.617		$	0.332		$	1.196

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

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Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

Shareholder Information

	12/31/2005
Ten Largest Institutional Shareholders:
Common Shares Held (1)
Barclays Global Investors	3,556,200
J.P Morgan Investment Management Inc. (NY)	2,430,231
Vanguard Group, Inc.	1,827,363
ING Clarion Real Estate Securities	1,769,153
RREEF Real Estate Securities Advisers, L.P.	1,519,683
Fidelity Management & Research	1,421,200
LaSalle Investment Management Securities, L.P.	1,067,417
State Street Global Advisors	793,758
Neuberger Berman, LLC	675,675
Cohen & Steers Capital Management, Inc.	666,700
TOTAL of Ten Largest Institutional:	15,727,380
TOTAL of all Institutional Holders:	25,620,533
Ten Largest as % of Total Institutional:	61.4	%

⁽¹⁾ Based on 13F filings as of 12/31/05 or most recent filings.

	12/31/2005	12/31/2004	% of 12/31/2005 total
Breakdown of Share & Unit Ownership:
Shares Held
Institutional (1)	25,620,533	21,655,541	63.0	%
Retail (2)	9,480,453	14,796,395	23.3	%
Insiders (3)	5,575,650	4,233,785	13.7	%
TOTAL	40,676,636	40,685,721	100.0	%

⁽¹⁾ Based on 13F filings as of 12/31/05 or most recent filings.

⁽²⁾ Retail ownership equals total shares outstanding minus institutional and insider ownership as of 4/1/05. Refer to our proxy, to be filed no later than April 30, 2006.

⁽³⁾ Insider holdings as of 4/1/05. (Shares and O.P. Units only. Excludes 433,865 exercisable options and 460,014 shares of unvested restricted stock).

PAGE 4

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

MARKET CAPITALIZATION

	December 31, 2005			September 30, 2005			June 30, 2005			March 31, 2005			December 31, 2004			December 31, 2003
EQUITY CAPITALIZATION
Common Shares Outstanding		36,520,715			36,714,465			36,511,624			36,474,699			36,272,162			35,544,265
O.P. Units Outstanding		4,155,921			4,499,800			4,686,418			4,686,418			4,413,559			3,691,516
TOTAL Shares and O.P. Units		40,676,636			41,214,265			41,198,042			41,161,117			40,685,721			39,235,781
Market Price (at end of period)	$	37.36		$	42.18		$	47.50		$	40.32		$	42.80		$	36.30
Preferred Shares, Nominal Value	$	123,750,000		$	123,750,000		$	123,750,000		$	123,750,000		$	123,750,000		$	123,750,000
Equity Market Capitalization	$	1,643,429,121		$	1,862,167,698		$	2,080,656,995		$	1,783,366,237		$	1,865,098,859		$	1,548,008,850
DEBT CAPITALIZATION
Unsecured Debt Balance (1)	$	436,900,000		$	276,000,000		$	431,000,000		$	402,000,000		$	271,000,000		$	170,000,000
Secured Debt Balance		1,523,745,400			1,442,536,218			1,284,981,735			1,307,545,347			1,326,127,000			1,396,262,538
Debt Capitalization	$	1,960,645,400		$	1,718,536,218		$	1,715,981,735		$	1,709,545,347		$	1,597,127,000		$	1,566,262,538
TOTAL MARKET CAPITALIZATION	$	3,604,074,521		$	3,580,703,916		$	3,796,638,730		$	3,492,911,584		$	3,462,225,859		$	3,114,271,388
Preferred Shares/Total Market Capitalization		3.4	%		3.5	%		3.3	%		3.5	%		3.6	%		4.0	%
Shares and O.P. Units/Total Market Capitalization		42.2	%		48.5	%		51.5	%		47.5	%		50.3	%		45.7	%
Debt Capitalization/Total Market Capitalization		54.4	%		48.0	%		45.2	%		48.9	%		46.1	%		50.3	%
Equity Capitalization/Total Market Capitalization		45.6	%		52.0	%		54.8	%		51.1	%		53.9	%		49.7	%
Unsecured Debt Balance/Total Debt		22.3	%		16.1	%		25.1	%		23.5	%		17.0	%		10.9	%
CAPITAL RESOURCES
	December 31, 2005			September 30, 2005			June 30, 2005			March 31, 2005			December 31, 2004			December 31, 2003
Cash on Hand	$	25,828,011		$	32,012,926		$	30,308,297		$	34,378,813		$	45,949,300		$	46,883,041
Line of Credit Capacity (2)	$	500,000,000		$	500,000,000		$	500,000,000		$	500,000,000		$	500,000,000		$	500,000,000
Amount Used (includes letters of credit)		(352,985,396	)		(289,335,396	)		(448,985,396	)		(410,054,533	)		(279,054,533	)		(170,500,000	)
Available LOC (3)	$	147,014,604		$	210,664,604		$	51,014,604		$	89,945,467		$	220,945,467		$	329,500,000
Shelf Registration	$	1,000,000,000		$	1,000,000,000		$	1,000,000,000		$	1,000,000,000		$	1,000,000,000		$	1,000,000,000
Amount Used		(344,146,042	)		(344,146,042	)		(344,146,042	)		(344,146,042	)		(344,146,042	)		(344,146,042	)
Available Shelf	$	655,853,958		$	655,853,958		$	655,853,958		$	655,853,958		$	655,853,958		$	655,853,958
TOTAL CAPITAL RESOURCES	$	828,696,573		$	898,531,488		$	737,176,859		$	780,178,238		$	922,748,725		$	1,032,236,999

⁽¹⁾ The unsecured debt balance for the period ended December 31, 2005 includes $94,400,000 of corporate notes payable.

⁽²⁾ The unsecured credit facility established in November 2003 and amended in January 2005 gives PREIT the ability to increase the facility to $650 million under prescribed conditions.

⁽³⁾ The available line of credit is subject to covenants that may restrict amounts that can be borrowed.

PAGE 5

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

BALANCE SHEET⁽¹⁾

(Proportionate consolidation method)

	December 31, 2005												December 31, 2004
	Consolidated Entities			PREIT’s share of Unconsolidated Partnerships (1)			Corporate			TOTAL			Consolidated Entities			PREIT’s share of Unconsolidated Partnerships (1)			Corporate			TOTAL
ASSETS
Investments in real estate, at cost
Retail properties (2)	$	2,815,843,068		$	169,300,611		$	—		$	2,985,143,679		$	2,518,364,388		$	131,343,981		$	—		$	2,649,708,369
Office/industrial properties		1,504,307			—			—			1,504,307			2,504,211			—			—			2,504,211
Land held for development		5,615,744			—			—			5,615,744			9,862,704			—			—			9,862,704
Construction in progress		55,368,040			2,220,602			—			57,588,642			10,952,450			2,542,307			—			13,494,757
TOTAL INVESTMENTS IN REAL ESTATE		2,878,331,159			171,521,213			—			3,049,852,372			2,541,683,753			133,886,288			—			2,675,570,041
Accumulated depreciation		(220,788,156	)		(32,459,101	)		—			(253,247,257	)		(150,885,609	)		(34,023,363	)		—			(184,908,972	)
Net real estate		2,657,543,003			139,062,112			—			2,796,605,115			2,390,798,144			99,862,925			—			2,490,661,069
Other assets:
Cash and cash equivalents		15,902,499			4,186,114			5,739,398			25,828,011			25,096,539			5,609,103			15,243,658			45,949,300
Rents and other receivables		39,096,218			11,406,791			7,395,426			57,898,435			27,286,042			11,328,239			4,691,167			43,305,448
Other assets held for sale (2)		7,948,349			—			—			7,948,349			6,837,914			—			—			6,837,914
Intangible assets		161,765,833			—			11,828,562			173,594,395			159,804,366			—			12,045,312			171,849,678
Deferred costs, prepaid taxes & exp. & other assets		44,884,357			12,151,373			24,906,692			81,942,422			42,573,601			7,550,568			19,782,031			69,906,200
TOTAL OTHER ASSETS		269,597,256			27,744,278			49,870,078			347,211,612			261,598,462			24,487,910			51,762,168			337,848,540
TOTAL ASSETS		2,927,140,259			166,806,390			49,870,078			3,143,816,727			2,652,396,606			124,350,835			51,762,168			2,828,509,609
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable		1,349,179,500			134,500,192			—			1,483,679,692			1,162,479,171			107,513,205			—			1,269,992,376
Mortgage debt premium		40,065,708			—			—			40,065,708			56,134,624			—			—			56,134,624
Bank loans payable		—			—			342,500,000			342,500,000			—			—			271,000,000			271,000,000
Notes payable		—			—			94,400,000			94,400,000			—			—			—			—
Liabilities related to assets held for sale		1,118,865			—			—			1,118,865			1,156,442			—			—			1,156,442
Other liabilities		58,261,404			4,123,314			24,471,783			86,856,501			50,292,594			3,351,797			40,146,857			93,791,248
TOTAL LIABILITIES		1,448,625,477			138,623,506			461,371,783			2,048,620,766			1,270,062,831			110,865,002			311,146,857			1,692,074,690
Minority interest		3,016,253			—			115,303,996			118,320,249			3,584,992			—			128,383,925			131,968,917
Shareholders’ equity:
Shares of beneficial interest at $1 par		—			—			36,520,715			36,520,715			—			—			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		—			—			912,798,152			912,798,152			—			—			899,506,128			899,506,128
Restricted stock		—			—			(13,359,486	)		(13,359,486	)		—			—			(7,736,812	)		(7,736,812	)
Accumulated other comprehensive income (loss)		—			—			4,376,594			4,376,594			—			—			(1,821,457	)		(1,821,457	)
Retained earnings		—			—			36,514,987			36,514,987			—			—			78,221,233			78,221,233
TOTAL SHAREHOLDERS’ EQUITY		—			—			976,875,712			976,875,712			—			—			1,004,466,002			1,004,466,002
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,451,641,730		$	138,623,506		$	1,553,551,491		$	3,143,816,727		$	1,273,647,823		$	110,865,002		$	1,443,996,784		$	2,828,509,609

⁽¹⁾ Includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s equity in these properties.

⁽²⁾ Investment in real estate as of December 31, 2005 and December 31, 2004 includes $8,267,586 and $8,108,066, respectively, relating to the assets held for sale. Other assets held for sale represents intangible assets and current assets of these properties.

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 41.

PAGE 6

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

BALANCE SHEET ⁽¹⁾

(Property Type)

	December 31, 2005															December 31, 2004
	Malls			Power and Strip Centers			Total Retail			Corporate and Other Properties			Total			Malls			Power and Strip Centers			Total Retail			Corporate and Other Properties			Total
ASSETS
Investments in real estate, at cost (2)	$	2,720,316,880		$	287,218,766		$	3,007,535,646		$	42,316,726		$	3,049,852,372		$	2,344,341,323		$	317,355,625		$	2,661,696,948		$	13,873,093		$	2,675,570,041
Accumulated depreciation		(201,175,738	)		(52,071,519	)		(253,247,257	)		—			(253,247,257	)		(135,017,071	)		(47,764,970	)		(182,782,041	)		(2,126,931	)		(184,908,972	)
Net Real Estate		2,519,141,142			235,147,247			2,754,288,389			42,316,726			2,796,605,115			2,209,324,252			269,590,655			2,478,914,907			11,746,162			2,490,661,069
Other assets:
Cash		16,288,437			3,673,619			19,962,056			5,865,955			25,828,011			26,115,513			4,590,129			30,705,642			15,243,658			45,949,300
Rents and other receivables		35,697,869			14,805,140			50,503,009			7,395,426			57,898,435			24,596,557			14,021,952			38,618,509			4,686,939			43,305,448
Other assets held for sale		7,860,728			87,162			7,947,890			459			7,948,349			6,837,914			—			6,837,914			—			6,837,914
Intangible assets		161,765,833			—			161,765,833			11,828,562			173,594,395			159,804,366			—			159,804,366			12,045,312			171,849,678
Other assets, net		38,908,502			12,002,753			50,911,255			31,031,167			81,942,422			27,779,353			9,791,194			37,570,547			32,335,653			69,906,200
Total other assets		260,521,369			30,568,674			291,090,043			56,121,569			347,211,612			245,133,703			28,403,275			273,536,978			64,311,562			337,848,540
TOTAL ASSETS		2,779,662,511			265,715,921			3,045,378,432			98,438,295			3,143,816,727			2,454,457,955			297,993,930			2,752,451,885			76,057,724			2,828,509,609
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable		1,393,726,570			89,953,122			1,483,679,692			—			1,483,679,692			1,165,736,877			104,255,499			1,269,992,376			—			1,269,992,376
Mortgage debt premium		39,093,748			971,960			40,065,708			—			40,065,708			54,794,532			1,340,092			56,134,624			—			56,134,624
Bank loans payable		—			—			—			342,500,000			342,500,000			—			—			—			271,000,000			271,000,000
Notes payable		—			—			—			94,400,000			94,400,000			—			—			—			—			—
Liabilities related to assets held for sale		1,093,991			3,545			1,097,536			21,329			1,118,865			1,156,442			—			1,156,442			—			1,156,442
Other liabilities		49,531,442			4,014,426			53,545,868			33,310,633			86,856,501			44,391,004			5,723,480			50,114,484			43,676,764			93,791,248
TOTAL LIABILITIES		1,483,445,751			94,943,053			1,578,388,804			470,231,962			2,048,620,766			1,266,078,855			111,319,071			1,377,397,926			314,676,764			1,692,074,690
Minority interest		3,016,253			—			3,016,253			115,303,996			118,320,249			3,584,992			—			3,584,992			128,383,925			131,968,917
Shareholders’ equity:
Shares of beneficial interest at $1 par		—			—			—			36,520,715			36,520,715			—			—			—			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		—			—			—			912,798,152			912,798,152			—			—			—			899,506,128			899,506,128
Restricted stock		—			—			—			(13,359,486	)		(13,359,486	)		—			—			—			(7,736,812	)		(7,736,812	)
Accumulated other comprehensive income (loss)		—			—			—			4,376,594			4,376,594			—			—			—			(1,821,457	)		(1,821,457	)
Retained earnings		—			—			—			36,514,987			36,514,987			—			—			—			78,221,233			78,221,233
TOTAL SHAREHOLDERS’ EQUITY		—			—			—			976,875,712			976,875,712			—			—			—			1,004,466,002			1,004,466,002
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,486,462,004		$	94,943,053		$	1,581,405,057		$	1,562,411,670		$	3,143,816,727		$	1,269,663,847		$	111,319,071		$	1,380,982,918		$	1,447,526,691		$	2,828,509,609

⁽¹⁾ Includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s equity in these properties.

⁽²⁾ Investment in real estate as of December 31, 2005 and December 31, 2004 includes $8,267,586 and $8,108,066, respectively, relating to the assets held for sale. Other assets held for sale represents intangible assets and other assets of these properties.

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 41.

PAGE 7

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

INCOME STATEMENT ⁽¹⁾

QUARTERLY COMPARISON

(Proportionate consolidation method)

	Three months ended December 31, 2005																			Three months ended December 31, 2004
	Consolidated properties					PREIT’s share of unconsolidated partnerships(1)					Corporate and other				Total			TOTAL % CHANGE		Consolidated properties					PREIT’s share of unconsolidated partnerships(1)					Corporate and other				Total
Real estate revenues:
Base rents	$	73,287,668				$	5,554,193				$	—			$	78,841,861		5.0	%	$	69,725,658				$	5,380,110				$	—			$	75,105,768
Straight line rent		1,083,118					84,464					—				1,167,582		-15.1	%		1,312,651					62,109					—				1,374,760
Percentage rents		4,458,125					150,590					—				4,608,715		-2.9	%		4,618,507					126,665					—				4,745,172
Expense reimbursements		32,110,187					1,975,439					—				34,085,626		14.9	%		27,934,268					1,723,062					—				29,657,330
Lease termination revenue		587,298					(35,846	)				—				551,452		-56.0	%		1,252,868					—					—				1,252,868
Other real estate revenues		7,544,990					304,459					—				7,849,449		8.2	%		6,999,260					258,452					—				7,257,712
TOTAL REAL ESTATE REVENUES		119,071,386		94	%		8,033,299		6	%		—		—		127,104,685		6.5	%		111,843,212		94	%		7,550,398		6	%		—		—		119,393,610
Property operating expenses:
CAM and real estate taxes		(30,463,304	)				(1,316,789	)				—				(31,780,093	)	14.0	%		(26,215,237	)				(1,657,812	)				—				(27,873,049	)
Utilities		(5,876,499	)				48,974					—				(5,827,525	)	29.8	%		(4,630,750	)				139,784					—				(4,490,966	)
Other property operating expenses		(9,628,745	)				(1,290,936	)				—				(10,919,681	)	16.2	%		(8,707,944	)				(692,592	)				—				(9,400,536	)
																																			—
TOTAL PROPERTY OPERATING EXPENSES		(45,968,548	)	95	%		(2,558,751	)	5	%		—		—		(48,527,299	)	16.2	%		(39,553,931	)	95	%		(2,210,620	)	5	%		—		—		(41,764,551	)
NET OPERATING INCOME		73,102,838		93	%		5,474,548		7	%		—		—		78,577,386		1.2	%		72,289,281		93	%		5,339,778		7	%		—		—		77,629,059
Management company revenue		—					—					1,912,627				1,912,627		-18.0	%		—					—					2,331,728				2,331,728
Interest and other income		—					—					310,511				310,511		92.5	%		—					—					161,323				161,323
Other:
General and administrative expenses		—					—					(8,890,316	)			(8,890,316	)	-13.2	%		—					—					(10,241,548	)			(10,241,548	)
Income taxes		(78,162	)				—					—				(78,162	)	N/A			—					—					—				—
Earnings before interest, taxes, depreciation and amortization (EBITDA)		73,024,676					5,474,548					(6,667,178	)			71,832,046		2.8	%		72,289,281					5,339,778					(7,748,497	)			69,880,562
Interest expense		(18,187,198	)				(2,130,646	)				(3,039,708	)			(23,357,552	)	12.0	%		(16,880,514	)				(2,083,405	)				(1,890,539	)			(20,854,458	)
Depreciation and amortization		(28,669,941	)				(1,295,366	)				(441,844	)			(30,407,151	)	11.0	%		(24,549,304	)				(2,558,956	)				(285,982	)			(27,394,242	)
OTHER EXPENSES		(46,857,139	)				(3,426,012	)				(3,481,552	)			(53,764,703	)	11.4	%		(41,429,818	)				(4,642,361	)				(2,176,521	)			(48,248,700	)
Gains on sales of interests in real estate		—					1,389,919					—				1,389,919		N/A			—					(45,001	)				—				(45,001	)
Income before minority interest		26,167,537					3,438,455					(10,148,730	)			19,457,262		-9.9	%		30,859,463					652,416					(9,925,018	)			21,586,861
Minority interest		(51,561	)				—					(2,050,708	)			(2,102,269	)	-17.0	%		(66,183	)				—					(2,466,827	)			(2,533,010	)
TOTAL CONTINUING OPERATIONS		26,115,976					3,438,455					(12,199,438	)			17,354,993		-8.9	%		30,793,280					652,416					(12,391,845	)			19,053,851
Discontinued Operations:
Minority interest		—					—					(338,406	)			(338,406	)	-405.8	%		1,283					—					109,365				110,648
Gains on sales of discontinued operations		2,422,136					—					—				2,422,136		N/A			—					—					—				—
TOTAL DISCONTINUED OPERATIONS		2,422,136					—					(338,406	)			2,083,730		1783.2	%		1,283					—					109,365				110,648
NET INCOME	$	28,538,112				$	3,438,455				$	(12,537,844	)		$	19,438,723		1.4	%	$	30,794,563				$	652,416				$	(12,282,480	)		$	19,164,499

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

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 41.

PAGE 8

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

INCOME STATEMENT ⁽¹⁾ 

ANNUAL COMPARISON

(Proportionate consolidation method)

	Twelve months ended December 31, 2005																			Twelve months ended December 31, 2004
	Consolidated properties					PREIT’s share of unconsolidated partnerships(1)					Corporate and other				Total			TOTAL % CHANGE		Consolidated properties					PREIT’s share of unconsolidated partnerships(1)					Corporate and other				Total
Real estate revenues:
Base rents	$	272,745,555				$	20,780,246				$	—			$	293,525,801		2.3	%	$	265,787,460				$	21,001,930				$	—			$	286,789,390
Straight line rent		4,266,077					108,101					—				4,374,178		-16.1	%		5,098,086					113,878					—				5,211,964
Percentage rents		10,432,204					246,607					—				10,678,811		2.0	%		10,152,341					314,402					—				10,466,743
Expense reimbursements		126,169,097					6,700,686					—				132,869,783		4.4	%		120,885,008					6,365,863					—				127,250,871
Lease termination revenue		2,785,075					512,483					—				3,297,558		-16.6	%		3,953,471					—					—				3,953,471
Other real estate revenues		16,939,892					705,146					—				17,645,038		4.8	%		16,147,305					697,021					—				16,844,326
TOTAL REAL ESTATE REVENUES		433,337,900		94	%		29,053,269		6	%		—		—		462,391,169		2.6	%		422,023,671		94	%		28,493,094		6	%		—		—		450,516,765
Property Operating Expenses:
CAM and real estate taxes		(116,144,146	)				(5,830,058	)				—				(121,974,204	)	5.8	%		(109,310,252	)				(5,991,981	)				—				(115,302,233	)
Utilities		(23,479,141	)				(268,631	)				—				(23,747,772	)	4.3	%		(22,310,283	)				(460,944	)				—				(22,771,227	)
Other property operating expenses		(26,524,799	)				(2,732,307	)				—				(29,257,106	)	0.0	%		(26,932,381	)				(2,336,235	)				—				(29,268,616	)
TOTAL PROPERTY OPERATING EXPENSES		(166,148,086	)	95	%		(8,830,996	)	5	%		—		—		(174,979,082	)	4.6	%		(158,552,916	)	95	%		(8,789,160	)	5	%		—		—		(167,342,076	)
NET OPERATING INCOME		267,189,814		93	%		20,222,273		7	%		—		—		287,412,087		1.5	%		263,470,755		93	%		19,703,934		7	%		—		—		283,174,689
Management company revenue		—					—					3,956,046				3,956,046		-25.0	%		—					—					5,276,556				5,276,556
Interest and other income		—					—					1,047,632				1,047,632		2.0	%		—					—					1,027,016				1,027,016
Other:
General and administrative		—					—					(36,723,338	)			(36,723,338	)	-14.7	%		—					—					(43,032,865	)			(43,032,865	)
Income taxes		(597,141	)				—					—				(597,141	)	N/A			—					—					—				—
Earnings before interest, taxes, depreciation and amortization (EBITDA)		266,592,673					20,222,273					(31,719,660	)			255,095,286		3.5	%		263,470,755					19,703,934					(36,729,293	)			246,445,396
Interest expense		(68,556,941	)				(8,165,858	)				(14,590,648	)			(91,313,447	)	9.3	%		(68,044,768	)				(8,316,640	)				(7,190,486	)			(83,551,894	)
Depreciation and amortization		(108,838,660	)				(4,581,995	)				(1,597,132	)			(115,017,787	)	11.6	%		(96,379,792	)				(5,780,885	)				(931,325	)			(103,092,002	)
OTHER EXPENSES		(177,395,601	)				(12,747,853	)				(16,187,780	)			(206,331,234	)	10.5	%		(164,424,560	)				(14,097,525	)				(8,121,811	)			(186,643,896	)
Gains on sales of interests in real estate		628,421					9,482,080					—				10,110,501		581.2	%		—					1,484,182					—				1,484,182
Income before minority interest		89,825,493					16,956,500					(47,907,440	)			58,874,553		-3.9	%		99,046,195					7,090,591					(44,851,104	)			61,285,682
Minority interest		(178,581	)				—					(6,205,301	)			(6,383,882	)	1.7	%		(611,173	)				—					(5,665,147	)			(6,276,320	)
TOTAL CONTINUING OPERATIONS		89,646,912					16,956,500					(54,112,741	)			52,490,671		-4.6	%		98,435,022					7,090,591					(50,516,251	)			55,009,362
Discontinued Operations:
Minority interest		(33	)				—					(1,020,013	)			(1,020,046	)	51.8	%		(18,426	)				—					(653,327	)			(671,753	)
Gains/(adjustment to gains) on sales of discontinued operations		6,158,550					—					—				6,158,550		N/A			—					—					(550,000	)			(550,000	)
TOTAL DISCONTINUED OPERATIONS		6,158,517					—					(1,020,013	)			5,138,504		N/A			(18,426	)				—					(1,203,327	)			(1,221,753	)
NET INCOME	$	95,805,429				$	16,956,500				$	(55,132,754	)		$	57,629,175		7.1	%	$	98,416,596				$	7,090,591				$	(51,719,578	)		$	53,787,609

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

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 41.

PAGE 9

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

SAME STORE QUARTERLY COMPARISON⁽¹⁾

	Three months ended December 31, 2005																							Three months ended December 31, 2004
	TOTAL			SAME					NEW					DIVEST				OTHER				% Change Same Store		TOTAL			SAME					NEW					DIVEST					OTHER
Real estate revenues:
Base rents	$	78,841,861		$	72,085,790				$	6,461,682				$	248,400			$	45,989			-1.3	%	$	75,105,768		$	73,007,673				$	1,037,776				$	965,924				$	94,395
Straight line rent		1,167,582			979,846					184,535					3,201				—			-27.6	%		1,374,760			1,352,466					26,306					(4,012	)				—
Percentage rents		4,608,715			4,304,413					305,027					(725	)			—			-11.2	%		4,745,172			4,848,991					2,141					(105,960	)				—
Expense reimbursements		34,085,626			31,434,235					2,525,900					125,491				—			7.4	%		29,657,330			29,254,840					392,851					1,346					8,293
Lease termination revenue		551,452			478,952					72,500					—				—			-61.8	%		1,252,868			1,252,868					(11,956	)				11,956					—
Other real estate revenues		7,849,449			7,096,231					749,821					3,397				—			-0.6	%		7,257,712			7,136,041					65,332					56,339					—
TOTAL REAL ESTATE REVENUES		127,104,685			116,379,467		92	%		10,299,465		8	%		379,764		—		45,989		—	-0.4	%		119,393,610			116,852,879		98	%		1,512,450		1	%		925,593		—			102,688		—
Property operating expenses:
CAM and real estate taxes		(31,780,093	)		(28,540,225	)				(3,110,615	)				(126,871	)			(2,382	)		5.9	%		(27,873,049	)		(26,959,631	)				(461,190	)				(439,435	)				(12,793	)
Utilities		(5,827,525	)		(5,723,126	)				(100,915	)				(3,484	)			—			26.9	%		(4,490,966	)		(4,510,779	)				(6,538	)				26,351					—
Other property operating expenses		(10,919,681	)		(9,653,537	)				(1,240,854	)				(18,560	)			(6,730	)		4.6	%		(9,400,536	)		(9,224,873	)				(150,533	)				(23,408	)				(1,722	)
TOTAL PROPERTY OPERATING EXPENSES		(48,527,299	)		(43,916,888	)	90	%		(4,452,384	)	9	%		(148,915	)	—		(9,112	)	—	7.9	%		(41,764,551	)		(40,695,283	)	97	%		(618,261	)	1	%		(436,492	)	1	%		(14,515	)	—
NET OPERATING INCOME		78,577,386			72,462,579		92	%		5,847,081		7	%		230,849		—		36,877		—	-4.9	%		77,629,059			76,157,596		98	%		894,189		1	%		489,101		—			88,173		—
Management company revenue		1,912,627			—					—					—				1,912,627			N/A			2,331,728			—					—					—					2,331,728
Interest and other income		310,511			—					—					—				310,511			N/A			161,323			—					—					—					161,323
General and administrative expenses		(8,890,316	)		—					—					—				(8,890,316	)		N/A			(10,241,548	)		—					—					—					(10,241,548	)
Income taxes		(78,162	)		(78,162	)				—					—				—			N/A			—			—					—					—					—
Interest expense		(23,357,552	)		(19,338,042	)				(979,802	)				—				(3,039,708	)		2.8	%		(20,854,458	)		(18,818,833	)				—					(145,086	)				(1,890,539	)
Depreciation and amortization		(30,407,151	)		(27,055,849	)				(2,845,599	)				(63,859	)			(441,844	)		2.2	%		(27,394,242	)		(26,485,866	)				(411,297	)				(198,557	)				(298,522	)
OTHER		(60,510,043	)		(46,472,053	)				(3,825,401	)				(63,859	)			(10,148,730	)		2.6	%		(55,997,197	)		(45,304,699	)				(411,297	)				(343,643	)				(9,937,558	)
Gains on sales of interests in real estate		3,812,055			—					—					2,348,101				1,463,954			N/A			(45,001	)		—					—					(45,001	)				—
Income before minority interest		21,879,398			25,990,526					2,021,680					2,515,091				(8,647,899	)		-15.8	%		21,586,861			30,852,897					482,892					100,457					(9,849,385	)
Minority interest		(2,440,675	)		(51,561	)				—					—				(2,389,114	)		-22.1	%		(2,422,362	)		(66,183	)				—					1,283					(2,357,462	)
NET INCOME	$	19,438,723		$	25,938,965				$	2,021,680				$	2,515,091			$	(11,037,013	)		-15.7	%	$	19,164,499		$	30,786,714				$	482,892				$	101,740				$	(12,206,847	)

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

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 41.

PAGE 10

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

SAME STORE ANNUAL COMPARISON⁽¹⁾

	Twelve months ended December 31, 2005																								Twelve months ended December 31, 2004
	TOTAL			SAME					NEW					DIVEST					OTHER				% Change Same Store		TOTAL			SAME					NEW					DIVEST					OTHER
Real estate revenue:
Base rents	$	293,525,801		$	264,555,103				$	26,302,467				$	2,280,870				$	387,361			-0.7	%	$	286,789,390		$	266,338,372				$	4,416,972				$	15,684,183				$	349,863
Straight line rent		4,374,178			3,497,726					893,055					(16,603	)				—			-28.9	%		5,211,964			4,922,122					181,947					107,895					—
Percentage rents		10,678,811			9,854,540					792,547					31,724					—			-0.6	%		10,466,743			9,914,364					249,531					302,848					—
Expense reimbursements		132,869,783			121,493,936					10,640,250					707,781					27,816			1.3	%		127,250,871			119,989,836					1,367,018					5,849,404					44,613
Lease termination revenue		3,297,558			2,280,072					84,500					932,986					—			-42.3	%		3,953,471			3,953,471					—					—					—
Other real estate revenues		17,645,038			15,885,525					1,732,529					26,984					—			-0.3	%		16,844,326			15,926,791					194,519					723,016					—
TOTAL REAL ESTATE REVENUES		462,391,169			417,566,902		90	%		40,445,348		9	%		3,963,742		1	%		415,177		—	-0.8	%		450,516,765			421,044,956		93	%		6,409,987		1	%		22,667,346		5	%		394,476		—
Property operating expenses:
CAM and real estate taxes		(121,974,204	)		(109,144,353	)				(11,767,181	)				(1,022,711	)				(39,959	)		3.9	%		(115,302,233	)		(105,086,527	)				(1,490,844	)				(8,680,049	)				(44,813	)
Utilities		(23,747,772	)		(22,611,394	)				(1,105,828	)				(30,550	)				—			8.9	%		(22,771,227	)		(20,759,785	)				(550,201	)				(1,461,241	)				—
Other property operating expenses		(29,257,106	)		(24,738,841	)				(4,362,463	)				(141,724	)				(14,078	)		-7.8	%		(29,268,616	)		(26,840,246	)				(573,912	)				(1,846,657	)				(7,801	)
TOTAL PROPERTY OPERATING EXPENSES		(174,979,082	)		(156,494,588	)	89	%		(17,235,472	)	10	%		(1,194,985	)	1	%		(54,037	)	—	2.5	%		(167,342,076	)		(152,686,558	)	91	%		(2,614,957	)	2	%		(11,987,947	)	7	%		(52,614	)	—
NET OPERATING INCOME		287,412,087			261,072,314		91	%		23,209,876		8	%		2,768,757		1	%		361,140		—	-2.7	%		283,174,689			268,358,398		95	%		3,795,030		1	%		10,679,399		4	%		341,862		—
Management company revenue		3,956,046			—					—					—					3,956,046			N/A			5,276,556			—					—					—					5,276,556
Interest and other income		1,047,632			—					—					—					1,047,632			N/A			1,027,016			—					—					—					1,027,016
General and administrative expenses		(36,723,338	)		—					—					—					(36,723,338	)		N/A			(43,032,865	)		—					—					—					(43,032,865	)
Income taxes		(597,141	)		(451,608	)				(145,533	)				—					—			N/A			—			—					—					—					—
Interest expense		(91,313,447	)		(73,548,489	)				(2,809,331	)				(364,979	)				(14,590,648	)		-0.8	%		(83,551,894	)		(74,158,721	)				—					(2,202,687	)				(7,190,486	)
Depreciation and amortization		(115,017,787	)		(102,012,684	)				(10,779,030	)				(616,401	)				(1,609,672	)		2.1	%		(103,092,002	)		(99,893,860	)				(1,268,022	)				(948,635	)				(981,485	)
OTHER		(238,648,035	)		(176,012,781	)				(13,733,894	)				(981,380	)				(47,919,980	)		1.1	%		(223,373,189	)		(174,052,581	)				(1,268,022	)				(3,151,322	)				(44,901,264	)
Gains on sales of interests in real estate		16,269,051			628,422					—					7,440,261					8,200,368			N/A			934,182			—					—					1,484,182					(550,000	)
Income before minority interest		65,033,103			85,687,955					9,475,982					9,227,638					(39,358,472	)		-9.1	%		60,735,682			94,305,817					2,527,008					9,012,259					(45,109,402	)
Minority interest		(7,403,928	)		(178,581	)				—					(33	)				(7,225,314	)		-70.8	%		(6,948,073	)		(611,174	)				—					(18,425	)				(6,318,474	)
NET INCOME	$	57,629,175		$	85,509,374				$	9,475,982				$	9,227,605				$	(46,583,786	)		-8.7	%	$	53,787,609		$	93,694,643				$	2,527,008				$	8,993,834				$	(51,427,876	)

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

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 41.

PAGE 11

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

RETAIL PROPERTY TYPE QUARTERLY COMPARISON⁽¹⁾

	Three months ended December 31, 2005																			Three months ended December 31, 2004
	Total			Enclosed Mall					Power and Strip Center					% Change Total		% Change Enclosed Mall		% Change Power and Strip Center		Total			Enclosed Mall					Power and Strip Center
Real estate revenues:
Base rents	$	78,795,872		$	71,103,856				$	7,692,016				5.0	%	6.3	%	-5.1	%	$	75,011,373		$	66,906,925				$	8,104,448
Straight line rent		1,167,582			1,029,128					138,454				-15.1	%	-16.9	%	1.2	%		1,374,760			1,237,975					136,785
Percentage rents		4,608,715			4,477,076					131,639				-2.9	%	-3.7	%	40.5	%		4,745,172			4,651,465					93,707
Expense reimbursements		34,085,626			32,327,989					1,757,637				15.0	%	14.8	%	17.4	%		29,649,037			28,151,636					1,497,401
Lease termination revenue		551,452			550,139					1,313				-56.0	%	-56.1	%	N/A			1,252,868			1,252,868					—
Other real estate revenues		7,849,449			7,770,167					79,282				8.2	%	7.7	%	99.1	%		7,257,712			7,217,896					39,816
TOTAL REAL ESTATE REVENUES		127,058,696			117,258,355		92	%		9,800,341		8	%	6.5	%	7.2	%	-0.7	%		119,290,922			109,418,765		92	%		9,872,157		8	%
Property operating expenses:
CAM and real estate taxes		(31,777,711	)		(30,092,057	)				(1,685,654	)			14.1	%	15.5	%	-7.0	%		(27,860,256	)		(26,048,029	)				(1,812,227	)
Utilities		(5,827,525	)		(5,784,732	)				(42,793	)			29.8	%	30.1	%	-2.4	%		(4,490,966	)		(4,447,116	)				(43,850	)
Other property operating expenses		(10,912,951	)		(10,512,941	)				(400,010	)			16.1	%	17.6	%	-13.3	%		(9,398,814	)		(8,937,430	)				(461,384	)
TOTAL PROPERTY OPERATING EXPENSES		(48,518,187	)		(46,389,730	)	96	%		(2,128,457	)	4	%	16.2	%	17.6	%	-8.2	%		(41,750,036	)		(39,432,575	)	94	%		(2,317,461	)	6	%
NET OPERATING INCOME		78,540,509			70,868,625		90	%		7,671,884		10	%	1.3	%	1.3	%	1.6	%		77,540,886			69,986,190		90	%		7,554,696		10	%
Income taxes		(78,162	)		(64,320	)				(13,842	)			N/A		N/A		N/A			—			—					—
Interest expense		(20,317,844	)		(18,672,825	)				(1,645,019	)			7.1	%	9.5	%	-14.2	%		(18,963,919	)		(17,047,356	)				(1,916,563	)
Depreciation and amortization		(29,965,307	)		(27,417,706	)				(2,547,601	)			10.6	%	18.6	%	-36.1	%		(27,095,720	)		(23,111,854	)				(3,983,866	)
OTHER EXPENSES		(50,361,313	)		(46,154,851	)				(4,206,462	)			9.3	%	14.9	%	-28.7	%		(46,059,639	)		(40,159,210	)				(5,900,429	)
Gains on sales of interests in real estate		2,348,101			(74,035	)				2,422,136				N/A		N/A		N/A			(45,001	)		—					(45,001	)
Income before minority interest		30,527,297			24,639,739					5,887,558				-2.9	%	-17.4	%	265.9	%		31,436,246			29,826,980					1,609,266
Minority interest		(51,561	)		(51,561	)				—				-20.6	%	-20.6	%	N/A			(64,900	)		(64,900	)				—
NET INCOME	$	30,475,736		$	24,588,178				$	5,887,558				-2.9	%	-17.4	%	265.9	%	$	31,371,346		$	29,762,080				$	1,609,266
SAME STORE COMPARISON
	Three months ended December 31, 2005													% Change TOTAL (1)		% Change Enclosed Mall		% Change Power and Strip Center		Three months ended December 31, 2004
	Total			Enclosed Mall					Power and Strip Center											Total			Enclosed Mall					Power and Strip Center
Real estate revenues:
Base rents	$	72,085,790		$	64,642,174				$	7,443,616				-1.3	%	-1.2	%	-2.0	%	$	73,007,673		$	65,411,671				$	7,596,002
Straight line rents		979,846			844,593					135,253				-27.6	%	-30.0	%	-7.5	%		1,352,466			1,206,309					146,157
Percentage rents		4,304,413			4,172,774					131,639				-11.2	%	-12.2	%	40.5	%		4,848,991			4,755,284					93,707
Expense reimbursements		31,434,235			29,802,088					1,632,147				7.4	%	6.9	%	18.5	%		29,254,840			27,877,090					1,377,750
Lease termination revenue		478,952			477,639					1,313				-61.8	%	-61.9	%	N/A			1,252,868			1,252,868					—
Other real estate revenues		7,096,231			7,020,345					75,886				-0.6	%	-1.0	%	67.1	%		7,136,041			7,090,627					45,414
TOTAL REAL ESTATE REVENUES		116,379,467			106,959,613		92	%		9,419,854		8	%	-0.4	%	-0.6	%	1.7	%		116,852,879			107,593,849		92	%		9,259,030		8	%
Property operating expenses:
CAM and real estate taxes		(28,540,225	)		(26,981,442	)				(1,558,783	)			5.9	%	6.8	%	-8.0	%		(26,959,631	)		(25,265,823	)				(1,693,808	)
Utilities		(5,723,126	)		(5,683,817	)				(39,309	)			26.9	%	27.3	%	-14.6	%		(4,510,779	)		(4,464,760	)				(46,019	)
Other property operating expenses		(9,653,537	)		(9,272,087	)				(381,450	)			4.6	%	5.2	%	-6.3	%		(9,224,873	)		(8,817,821	)				(407,052	)
TOTAL PROPERTY OPERATING EXPENSES		(43,916,888	)		(41,937,346	)	95	%		(1,979,542	)	5	%	7.9	%	8.8	%	-7.8	%		(40,695,283	)		(38,548,404	)	95	%		(2,146,879	)	5	%
NET OPERATING INCOME		72,462,579			65,022,267		90	%		7,440,312		10	%	-4.9	%	-5.8	%	4.6	%		76,157,596			69,045,445		91	%		7,112,151		9	%
Income taxes		(78,162	)		(64,320	)				(13,842	)			N/A		N/A		N/A			—			—					—
Interest expense		(19,338,042	)		(17,693,023	)				(1,645,019	)			2.8	%	4.7	%	-14.2	%		(18,818,833	)		(16,902,270	)				(1,916,563	)
Depreciation and amortization		(27,055,849	)		(24,572,107	)				(2,483,742	)			2.2	%	8.7	%	-35.8	%		(26,485,866	)		(22,615,486	)				(3,870,380	)
OTHER EXPENSES		(46,472,053	)		(42,329,450	)				(4,142,603	)			2.6	%	7.1	%	-28.4	%		(45,304,699	)		(39,517,756	)				(5,786,943	)
Gains on sales of interests in real estate		—			—					—				N/A		N/A		N/A			—			—					—
Income before minority interest		25,990,526			22,692,817					3,297,709				-15.8	%	-23.1	%	148.8	%		30,852,897			29,527,689					1,325,208
Minority interest		(51,561	)		(51,561	)				—				-22.1	%	-22.1	%	N/A			(66,183	)		(66,183	)				—
NET INCOME	$	25,938,965		$	22,641,256				$	3,297,709				-15.7	%	-23.1	%	148.8	%	$	30,786,714		$	29,461,506				$	1,325,208

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

PAGE 12

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

RETAIL PROPERTY TYPE ANNUAL COMPARISON⁽¹⁾

	Twelve months ended December 31, 2005																			Twelve months ended December 31, 2004
	Total			Enclosed Mall					Power and Strip Center					% Change Total		% Change Enclosed Mall		% Change Power and Strip Center		Total			Enclosed Mall					Power and Strip Center
Real estate revenues:
Base rents	$	293,138,440		$	262,017,284				$	31,121,156				2.3	%	3.3	%	-5.3	%	$	286,439,527		$	253,572,088				$	32,867,439
Straight line rent		4,374,178			3,756,409					617,769				-16.1	%	-19.8	%	16.8	%		5,211,964			4,682,948					529,016
Percentage rents		10,678,811			10,433,691					245,120				2.0	%	2.0	%	3.2	%		10,466,743			10,229,269					237,474
Expense reimbursements		132,841,967			125,844,991					6,996,976				4.4	%	4.4	%	5.6	%		127,206,258			120,577,404					6,628,854
Lease termination revenue		3,297,558			1,810,497					1,487,061				-16.6	%	-26.2	%	-0.9	%		3,953,471			2,453,471					1,500,000
Other real estate revenues		17,645,038			17,399,240					245,798				4.8	%	4.2	%	71.3	%		16,844,326			16,700,831					143,495
TOTAL REAL ESTATE REVENUES		461,975,992			421,262,112		91	%		40,713,880		9	%	2.6	%	3.2	%	-2.8	%		450,122,289			408,216,011		91	%		41,906,278		9	%
Property operating expenses
CAM and real estate taxes		(121,934,245	)		(114,762,903	)				(7,171,342	)			5.8	%	6.2	%	-1.0	%		(115,257,420	)		(108,016,683	)				(7,240,737	)
Utilities		(23,747,772	)		(23,556,618	)				(191,154	)			4.3	%	4.4	%	-6.5	%		(22,771,227	)		(22,566,869	)				(204,358	)
Other property operating expenses		(29,243,028	)		(28,111,983	)				(1,131,045	)			-0.1	%	1.1	%	-22.3	%		(29,260,815	)		(27,804,516	)				(1,456,299	)
TOTAL PROPERTY OPERATING EXPENSES		(174,925,045	)		(166,431,504	)	95	%		(8,493,541	)	5	%	4.6	%	5.1	%	-4.6	%		(167,289,462	)		(158,388,068	)	95	%		(8,901,394	)	5	%
NET OPERATING INCOME		287,050,947			254,830,608		89	%		32,220,339		11	%	1.5	%	2.0	%	-2.4	%		282,832,827			249,827,943		88	%		33,004,884		12	%
Income taxes		(597,141	)		(424,838	)				(172,303	)			N/A		N/A		N/A			—			—					—
Interest expense		(76,722,799	)		(69,806,076	)				(6,916,723	)			0.5	%	0.7	%	-1.3	%		(76,361,408	)		(69,353,966	)				(7,007,442	)
Depreciation and amortization		(113,408,115	)		(103,197,278	)				(10,210,837	)			11.1	%	14.2	%	-12.9	%		(102,110,517	)		(90,387,062	)				(11,723,455	)
OTHER EXPENSES		(190,728,055	)		(173,428,192	)				(17,299,863	)			6.9	%	8.6	%	-7.6	%		(178,471,925	)		(159,741,028	)				(18,730,897	)
Gains on sales of interests in real estate		8,068,683			5,031,507					3,037,176				443.6	%	N/A		104.6	%		1,484,182			—					1,484,182
Income before minority interest		104,391,575			86,433,923					17,957,652				-1.4	%	-4.1	%	14.0	%		105,845,084			90,086,915					15,758,169
Minority interest		(178,614	)		(178,614	)				—				-71.6	%	-71.6	%	N/A			(629,599	)		(629,599	)				—
NET INCOME	$	104,212,961		$	86,255,309				$	17,957,652				-1.0	%	-3.6	%	14.0	%	$	105,215,485		$	89,457,316				$	15,758,169
	Twelve months ended December 31, 2005																			Twelve months ended December 31, 2004
SAME STORE COMPARISON	Total			Enclosed Mall					Power and Strip Center					% Change TOTAL (1)		% Change Enclosed Mall		% Change Power and Strip Center		Total			Enclosed Mall					Power and Strip Center
Real estate revenues:
Base rents	$	264,555,103		$	234,733,736				$	29,821,367				-0.7	%	-0.5	%	-2.1	%	$	266,338,372		$	235,863,650				$	30,474,722
Straight line rent		3,497,726			2,872,666					625,060				-28.9	%	-34.0	%	9.2	%		4,922,122			4,349,621					572,501
Percentage rents		9,854,540			9,609,420					245,120				-0.6	%	-0.7	%	3.2	%		9,914,364			9,676,890					237,474
Expense reimbursements		121,493,936			114,903,110					6,590,826				1.3	%	0.8	%	9.4	%		119,989,836			113,964,113					6,025,723
Lease termination revenue		2,280,072			1,725,997					554,075				-42.3	%	-29.7	%	-63.1	%		3,953,472			2,453,472					1,500,000
Other real estate revenues		15,885,525			15,643,124					242,401				-0.3	%	-0.9	%	62.6	%		15,926,791			15,777,696					149,095
TOTAL REAL ESTATE REVENUES		417,566,902			379,488,053		91	%		38,078,849		9	%	-0.8	%	-0.7	%	-2.3	%		421,044,957			382,085,442		91	%		38,959,515		9	%
Property operating expenses:
CAM and real estate taxes		(109,144,353	)		(102,498,231	)				(6,646,122	)			3.9	%	4.1	%	0.3	%		(105,086,527	)		(98,460,306	)				(6,626,221	)
Utilities		(22,611,394	)		(22,450,790	)				(160,604	)			8.9	%	9.1	%	-13.8	%		(20,759,785	)		(20,573,532	)				(186,253	)
Other property operating expenses		(24,738,841	)		(23,660,173	)				(1,078,668	)			-7.8	%	-7.2	%	-19.2	%		(26,840,246	)		(25,505,457	)				(1,334,789	)
TOTAL PROPERTY OPERATING EXPENSES		(156,494,588	)		(148,609,194	)	95	%		(7,885,394	)	5	%	2.5	%	2.8	%	-3.2	%		(152,686,558	)		(144,539,295	)	95	%		(8,147,263	)	5	%
NET OPERATING INCOME		261,072,314			230,878,859		88	%		30,193,455		12	%	-2.7	%	-2.8	%	-2.0	%		268,358,399			237,546,147		89	%		30,812,252		11	%
Income taxes		(451,608	)		(279,305	)				(172,303	)			N/A		N/A		N/A			—			—					—
Interest expense		(73,548,489	)		(66,631,766	)				(6,916,723	)			-0.8	%	-0.8	%	-1.3	%		(74,158,720	)		(67,151,278	)				(7,007,442	)
Depreciation and amortization		(102,012,684	)		(92,222,608	)				(9,790,076	)			2.1	%	3.9	%	-12.0	%		(99,893,860	)		(88,771,621	)				(11,122,239	)
OTHER EXPENSES		(176,012,781	)		(159,133,679	)				(16,879,102	)			1.1	%	2.1	%	-6.9	%		(174,052,580	)		(155,922,899	)				(18,129,681	)
Gains on sales of interests in real estate		628,422			60,536					567,886				N/A		N/A		N/A			—			—					—
Income before minority interest		85,687,955			71,805,716					13,882,239				-9.1	%	-12.0	%	9.5	%		94,305,819			81,623,248					12,682,571
Minority interest		(178,581	)		(178,581	)				—				-70.8	%	-70.8	%	N/A			(611,174	)		(611,174	)				—
NET INCOME	$	85,509,374		$	71,627,135				$	13,882,239				-8.7	%	-11.6	%	9.5	%	$	93,694,645		$	81,012,074				$	12,682,571

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

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Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

EARNINGS PER SHARE

	Three months ended December 31,						Twelve months ended December 31,
	2005			2004			2005			2004
Net income from continuing operations	$	16,685,598		$	18,546,251		$	49,493,538		$	46,502,691
Dividends on preferred shares		(3,403,125	)		(3,403,125	)		(13,612,500	)		(13,612,500	)
Net income from continuing operations available to common shareholders		13,282,473			15,143,126			35,881,038			32,890,191
Dividends on unvested restricted shares		(263,713	)		(185,186	)		(1,033,905	)		(732,894	)
Income from continuing operations used to calculate earnings per share - basic		13,018,760			14,957,940			34,847,133			32,157,297
Minority interest in properties-continuing operations		51,561			66,183			178,581			611,173
Income from continuing operations used to calculate earnings per share - diluted	$	13,070,321		$	15,024,123		$	35,025,714		$	32,768,470
Income from discontinued operations - basic	$	2,753,125		$	618,247		$	8,135,636		$	7,284,917
Minority interest in properties-discontinued operations		—			(1,283	)		33			18,426
Income from discontinued operations - diluted	$	2,753,125		$	616,964		$	8,135,669		$	7,303,343
Basic earnings per share:
Income from continuing operations	$	0.36		$	0.42		$	0.97		$	0.90
Income from discontinued operations		0.08			0.02			0.22			0.21
	$	0.44		$	0.44		$	1.19		$	1.11
Diluted earnings per share:
Income from continuing operations	$	0.36		$	0.41		$	0.95		$	0.90
Income from discontinued operations		0.07			0.02			0.22			0.20
	$	0.43		$	0.43		$	1.17		$	1.10
Weighted average of common shares outstanding		36,670,408			36,159,747			36,535,376			35,928,885
Weighted average of unvested restricted stock		(460,014	)		(340,960	)		(445,506	)		(319,535	)
Weighted average shares outstanding-basic		36,210,394			35,818,787			36,089,870			35,609,350
Weighted average effect of common share equivalents		614,543			718,157			672,506			659,461
Total weighted average shares outstanding-diluted		36,824,937			36,536,944			36,762,376			36,268,811

PAGE 14

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

FUNDS FROM OPERATIONS (FFO)⁽¹⁾

	Three months ended December 31,								Twelve months ended December 31,
	2005			2004			% Change		2005			2004			% Change
Net income	$	19,438,723		$	19,164,499		1.4	%	$	57,629,175		$	53,787,609		7.1	%
Dividends on preferred shares		(3,403,125	)		(3,403,125	)	0.0	%		(13,612,500	)		(13,612,500	)	0.0	%
Net income available to common shareholders	$	16,035,598		$	15,761,374		1.7	%	$	44,016,675		$	40,175,109		9.6	%
Minority interest in operating partnership-continuing operations		2,050,708			2,466,827		-16.9	%		6,205,301			5,665,147		9.5	%
Minority interest in operating partnership-discontinued operations		338,406			(109,365	)	-409.4	%		1,020,046			653,327		56.1	%
Gains on sales of interests in real estate		74,035			45,001		64.5	%		(5,586,011	)		(1,484,182	)	276.4	%
Gains and adjustments to gains on disposition of discontinued operations		(2,422,136	)		—		N/A			(6,158,551	)		550,000		N/A
Depreciation and amortization: (2)
Wholly owned and consolidated partnerships		28,468,894			24,292,367		17.2	%		107,873,898			95,359,067		13.1	%
Unconsolidated partnerships		1,295,366			2,558,956		-49.4	%		4,581,995			5,780,885		-20.7	%
Discontinued operations		63,859			126,026		-49.3	%		433,301			502,361		-13.7	%
FFO	$	45,904,730		$	45,141,186		1.7	%	$	152,386,654		$	147,201,714		3.5	%
Minority interest in properties		123,749			130,811		-5.4	%		450,075			473,629		-5.0	%
FFO for diluted calculation	$	46,028,479		$	45,271,997		1.7	%	$	152,836,729		$	147,675,343		3.5	%
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	45,904,730		$	45,141,186		1.7	%	$	152,386,654		$	147,201,714		3.5	%
Adjustments:
Straight line rents		(1,167,582	)		(1,374,760	)	-15.1	%		(4,374,178	)		(5,211,964	)	-16.1	%
Recurring capital expenditures		(6,047,000	)		(3,989,314	)	51.6	%		(15,357,000	)		(8,905,629	)	72.4	%
Tenant allowances		(6,364,000	)		(9,164,115	)	-30.6	%		(18,201,000	)		(11,660,288	)	56.1	%
Capitalized leasing costs		(1,011,044	)		(1,221,605	)	-17.2	%		(3,574,175	)		(2,912,712	)	22.7	%
Amortization of debt premium		(4,245,756	)		(4,811,196	)	-11.8	%		(18,773,323	)		(19,353,620	)	-3.0	%
Amortization of above- and below-market lease intangibles		877,375			115,173		661.8	%		1,384,615			707,192		95.8	%
FAD	$	27,946,723		$	24,695,369		13.2	%	$	93,491,593		$	99,864,693		-6.4	%
Minority interest in properties		123,749			130,811		-5.4	%		450,075			473,629		-5.0	%
FAD for diluted calculation	$	28,070,472		$	24,826,180		13.1	%	$	93,941,668		$	100,338,322		-6.4	%
Weighted average of common shares outstanding		36,210,394			35,818,787		1.1	%		36,089,870			35,609,350		1.3	%
Weighted average of O.P. Units outstanding		4,460,657			4,425,874		0.8	%		4,580,421			4,183,059		9.5	%
Weighted average shares and O.P. Units outstanding-basic		40,671,051			40,244,661		1.1	%		40,670,291			39,792,409		2.2	%
Weighted average effect of common share equivalents		614,543			718,157		-14.4	%		672,506			659,461		2.0	%
Total weighted average shares outstanding, including O.P. Units-diluted		41,285,594			40,962,818		0.8	%		41,342,797			40,451,870		2.2	%
Net income per share (diluted)	$	0.43		$	0.43		0.0	%	$	1.17		$	1.10		6.4	%
FFO per share (basic)	$	1.13		$	1.12		0.6	%	$	3.75		$	3.70		1.3	%
FFO per share (diluted)	$	1.11		$	1.11		0.9	%	$	3.70		$	3.65		1.3	%
FAD per Share (basic)	$	0.69		$	0.61		12.0	%	$	2.30		$	2.51		-8.4	%
FAD per Share (diluted)	$	0.68		$	0.61		12.2	%	$	2.27		$	2.48		-8.4	%
Dividend per Common Share	$	0.57		$	0.54		5.6	%	$	2.25		$	2.16		4.2	%
PAYOUT RATIOS
Payout Ratio of FFO		51.1	%		48.9	%	2.3	%		60.9	%		59.2	%	1.7	%
Payout Ratio of FAD		83.8	%		89.1	%	-5.3	%		99.0	%		87.1	%	11.9	%

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

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

PAGE 15

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

KEY RATIOS

	For the period ended December 31,
	2005		2004
Coverage Ratio (1)
Interest Coverage Ratio (EBITDA/Interest Expense)	2.79		2.95
Leverage Ratios (1)
Debt / Total Market Capitalization	54.4	%	46.1	%
Operating Ratios (1)
NOI/Real Estate Revenues	62.2	%	62.9	%
Return on Investment Ratios (1)
Total FFO/Equity Market Capitalization, net of preferred shares	10.0	%	8.5	%
NOI/Total Market Capitalization at Period End	8.0	%	8.2	%
NOI/Investment in Real Estate at Period End	9.4	%	10.6	%
Payout Ratios
FFO Payout Ratio (Dividend/FFO-diluted) per Share	60.9	%	59.2	%
FAD Payout Ratio (Dividend/FAD-diluted) per Share	99.0	%	87.1	%

⁽¹⁾ The calculation of these ratios includes consolidated properties, including properties held for sale, and PREIT’s proportionate share of partnership properties.

PAGE 16

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

DEBT SCHEDULE⁽⁶⁾

Property Name	PREIT’s Ownership Interest		PREIT’s Investment to Date (1)		PREIT’s Depreciated Costs		PREIT’s Share of O/S Debt and Debt Premuim	PREIT’s Share of Mortgage		PREIT’s Share of Mortgage Debt Premium		Stated Interest Rate		Marked to Market Interest Rate (GAAP)		Annual Mortgage Debt Service		Mortgage Balance at Maturity		Date of Maturity
Retail Properties
Beaver Valley Mall	100	%	$	56,002,744	$	50,158,742	46,377,550	$	46,377,550	$	—	7.36	%	7.36	%	$	3,972,402	$	42,265,601	2012
Capital City Mall	100	%		88,627,806		84,077,332	57,472,373		52,236,917		5,235,456	7.61	%	5.50	%		4,602,529		47,842,921	2012
Chambersburg Mall (2)(3)	89	%		35,238,383		33,144,288	19,470,978		18,360,167		1,110,811	7.43	%	4.99	%		1,762,666		17,199,298	2008
Cherry Hill Mall	100	%		209,683,087		196,206,011	199,554,710		199,554,710		—	5.42	%	5.42	%		13,509,720		177,689,279	2012
Christiana Power I	100	%		40,705,347		34,179,269	—		—		—	—		—			—		—
Court at Oxford Valley	50	%		27,702,193		22,152,460	20,598,300		20,598,300		—	8.02	%	8.02	%		2,319,426		15,666,965	2011
Creekview	100	%		19,094,685		15,322,314	—		—		—	—		—			—		—
Crest Plaza Shopping Center	100	%		16,260,819		13,784,841	—		—		—	—		—			—		—
Crossroads Mall	100	%		32,268,762		29,950,958	13,690,281		13,201,663		488,618	7.39	%	5.75	%		1,191,103		12,646,534	2008
Cumberland Mall	100	%		55,235,676		54,153,551	45,843,013		43,437,867		2,405,146	6.50	%	5.40	%		3,413,167		38,782,132	2012
							3,662,154		3,662,154		—	5.00	%	5.00	%		205,512		—	2017
Dartmouth Mall	100	%		60,547,728		46,828,324	67,436,109		67,436,109		—	4.95	%	4.95	%		4,483,668		57,594,279	2013
Echelon Mall	100	%		18,174,896		15,132,038	—		—		—	—		—
Exton Square Mall	100	%		144,828,038		135,128,584	102,010,985		97,233,723		4,777,262	6.95	%	5.00	%		8,102,242		93,034,213	2008
Francis Scott Key Mall (2)(3)	89	%		62,261,927		58,637,747	34,074,211		32,130,293		1,943,918	7.43	%	4.99	%		3,084,665		30,098,771	2008
Gadsden Mall	100	%		50,448,142		49,431,844	—		—		—	—		—			—		—
Jacksonville Mall (3)	100	%		67,271,553		63,162,390	26,285,819		24,786,226		1,499,593	7.43	%	4.99	%		2,379,598		23,219,052	2008
Lehigh Valley Mall	50	%		17,952,478		7,729,216	22,362,216		22,362,216		—	7.90	%	7.90	%		2,479,260		21,750,439	2006
Logan Valley Mall (3)	100	%		91,916,248		85,467,637	55,492,286		52,326,476		3,165,810	7.43	%	4.99	%		5,023,597		49,017,998	2008
Lycoming Mall (2)(3)	89	%		57,216,496		54,009,510	34,074,212		32,130,293		1,943,919	7.43	%	4.99	%		3,084,664		30,098,771	2008
Magnolia Mall	100	%		65,587,418		54,601,843	65,653,388		65,653,388		—	5.33	%	5.33	%		4,412,779		54,212,017	2015
Metroplex Shopping Center	50	%		42,023,644		34,454,151	31,454,736		31,454,736		—	7.25	%	7.25	%		2,680,953		28,784,676	2011
Moorestown Mall	100	%		76,653,978		68,587,706	61,896,715		61,896,715		—	4.95	%	4.95	%		4,115,367		52,863,321	2013
New River Valley Mall (2)(3)	89	%		31,506,372		29,672,776	16,550,331		15,606,142		944,189	7.43	%	4.99	%		1,498,266		14,619,403	2008
Nittany Mall (2)(3)	89	%		39,587,252		37,305,822	29,206,467		27,540,251		1,666,216	7.43	%	4.99	%		2,643,998		25,798,946	2008
North Hanover Mall (2)(3)	89	%		29,014,965		27,173,106	19,470,978		18,360,167		1,110,811	7.43	%	4.99	%		1,762,666		17,199,298	2008
Northeast Tower Center (3)	100	%		33,660,510		29,420,931	17,037,106		16,065,146		971,960	7.43	%	4.99	%		1,542,332		15,049,385	2008
Orlando Fashion Square	100	%		109,717,743		106,592,822	—		—		—	—		—			—		—	—
Palmer Park Mall	100	%		33,543,480		25,906,162	17,258,579		17,258,579		—	6.77	%	6.77	%		1,661,220		15,674,394	2009
Patrick Henry Mall (2)(3)	89	%		131,103,136		125,126,944	49,164,222		46,359,423		2,804,799	7.43	%	4.99	%		4,450,730		43,428,226	2008
Paxton Towne Centre	100	%		53,892,843		46,270,786	—		—		—	—		—			—		—	—
Phillipsburg Mall (2)(3)	89	%		49,161,808		46,247,327	29,206,467		27,540,251		1,666,216	7.43	%	4.99	%		2,643,998		25,798,946	2008
Plymouth Meeting Mall	100	%		81,746,296		75,499,963	—		—		—	—		—			—		—	—
Red Rose Commons	50	%		11,941,686		9,967,487	13,382,870		13,382,870		—	7.66	%	7.66	%		1,220,048		12,425,422	2009
Schuylkill Mall (4)	100	%		8,267,586		8,267,586	17,113,872		17,113,872		—	7.25	%	7.25	%		N/A		N/A	2008
Springfield Mall	50	%		47,743,175		47,617,616	38,250,000		38,250,000		—	5.49	%	5.49	%		2,272,050		38,250,000	2007
Springfield Park I&II	50	%		7,020,939		6,208,718	1,723,487		1,723,487		—	7.79	%	7.79	%		202,561		1,411,804	2010
South Blanding Village	100	%		9,504,950		5,911,336	—		—		—	—		—			—		—	—
South Mall (2)(3)	89	%		27,109,930		25,483,283	14,603,234		13,770,126		833,108	7.43	%	4.99	%		1,321,999		12,899,473	2008
The Commons at Magnolia	100	%		9,784,341		8,052,781	—		—		—	—		—			—		—	—
The Gallery at Market East I	100	%		48,383,058		44,963,090	—		—		—	—		—			—		—	—
The Gallery at Market East II	100	%		29,651,016		28,490,633	—		—		—	—		—			—		—	—
The Mall at Prince Georges	100	%		92,674,649		77,007,487	41,724,430		40,842,108		882,322	8.70	%	6.80	%		4,134,936		39,986,536	2007
Uniontown Mall (2)(3)	89	%		35,127,115		32,512,404	23,365,174		22,032,201		1,332,973	7.43	%	4.99	%		2,155,199		20,639,157	2008

PAGE 17

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

DEBT SCHEDULE⁽⁶⁾

Property Name	PREIT’s Ownership Interest		PREIT’s Investment to Date (1)		PREIT’s Depreciated Costs		PREIT’s Share of O/S Debt and Debt Premuim		PREIT’s Share of Mortgage		PREIT’s Share of Mortgage Debt Premium		Stated Interest Rate		Marked to Market Interest Rate (GAAP)		Annual Mortgage Debt Service		Mortgage Balance at Maturity		Date of Maturity
Valley Mall	100	%		86,301,310		80,371,100		—		—		—	—		—			—		—	—
Valley View Mall	100	%		61,166,891		57,767,519		36,850,810		36,400,255		450,555	6.15	%	5.75	%		2,773,295		34,280,656	2009
Viewmont Mall (2)(3)	89	%		77,311,261		73,241,930		29,206,467		27,540,251		1,666,216	7.43	%	4.99	%		2,643,998		25,798,946	2008
Washington Crown Center (2)	89	%		42,538,203		38,554,614		—		—		—	—		—			—		—	—
Whitehall Mall	50	%		15,626,809		9,422,175		6,728,583		6,728,583		—	6.77	%	6.77	%		641,436		6,128,937	2008
Willow Grove Park	100	%		176,107,325		159,421,779		160,000,000		160,000,000		—	5.65	%	5.65	%		11,082,927		133,248,622	2015
Wiregrass Mall	100	%		37,458,994		35,213,505		—		—		—	—		—			—		—	—
Woodland Mall (5)	100	%		160,044,109		160,019,953		—		—		—	—		—			—		—	—
Wyoming Valley Mall (3)	100	%		91,736,246		86,876,398		55,492,287		52,326,477		3,165,810	7.43	%	4.99	%		5,023,597		49,017,998	2008
Westgate Anchor Pad	100	%		3,399,600		3,399,600		—		—		—	—		—			—		—	—
Sub-Total Retail Properties			$	3,007,535,646	$	2,754,288,389	$	1,523,745,400	$	1,483,679,692	$	40,065,708	6.55	%	5.54	%	$	120,498,574	$	1,324,422,416
Office Properties
P&S Building	100	%		1,504,307		1,504,307		—		—		—	—		—			—		—	—
Sub-Total Office Properties			$	1,504,307	$	1,504,307	$	—	$	—	$	—	—		—		$	—	$	—
Land/Development Properties
Lacey	100	%	$	16,039,806		16,039,806							—		—			—		—	—
New Garden	100	%		8,683,073		8,683,073							—		—			—		—	—
New River Valley	100	%		4,500,197		4,500,197							—		—			—		—	—
Pavilion at Market East	50	%		1,510,289		1,510,289							—		—			—		—	—
The Plaza at Magnolia	100	%		4,463,310		4,463,310							—		—			—		—	—
Land held for development	100	%		5,615,744		5,615,744							—		—			—		—	—
Sub-Total Land/Development Properties			$	40,812,419	$	40,812,419	$	—	$	—	$	—	—		—		$	—	$	—
TOTAL for CONSOLIDATED PROPERTIES			$	2,878,331,159	$	2,657,543,003	$	1,389,245,208	$	1,349,179,500	$	40,065,708	6.51	%	5.54	%	$	108,682,840	$	1,200,004,173
TOTAL for PARTNERSHIPS			$	171,521,213	$	139,062,112	$	134,500,192	$	134,500,192	$	—	7.00	%	7.00	%	$	11,815,734	$	124,418,243
CORPORATE /LINE OF CREDIT							$	342,500,000	$	342,500,000	$	—
CORPORATE NOTES PAYABLE (5)							$	94,400,000	$	94,400,000	$	—	6.85	%	5.00	%					2006
TOTAL for CONSOLIDATED and PARTNERSHIPS			$	3,049,852,372	$	2,796,605,115	$	1,960,645,400	$	1,920,579,692	$	40,065,708	6.57	%	5.63	%	$	120,498,574	$	1,324,422,416

⁽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 December 2005, the Company funded $94,400,000 of the purchase price of Woodland Mall with two 90-day promissory notes to the seller with an average interest rate of 6.85% and secured by letters of credit. The Company intends to obtain long term financing on the Woodland Mall before the notes mature.

⁽⁶⁾ Includes 100% of consolidated properties and proportionate share of equity method investments.

PAGE 18

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

Schedule of Debt Premium Amortization⁽¹⁾

	Scheduled Amortization of Premium		Debt Premium Balance
Q4 05			$	40,065,708
Q1 06	$	3,364,412		36,701,296
Q2 06		3,364,389		33,336,907
Q3 06		3,348,669		29,988,238
Q4 06		3,324,908		26,663,330
Q1 07		3,300,910		23,362,420
Q2 07		3,299,681		20,062,739
Q3 07		3,135,723		16,927,016
Q4 07		3,110,838		13,816,178
Q1 08		3,093,316		10,722,862
Q2 08		3,083,019		7,639,843
Q3 08		3,017,091		4,622,752
Q4 08		596,438		4,026,314
Q1 09		320,666		3,705,648
Q2 09		334,270		3,371,378
Q3 09		332,872		3,038,506
Q4 09		295,072		2,743,434
Q1 10		286,447		2,456,987
Q2 10		299,845		2,157,142
Q3 10		298,489		1,858,653
Q4 10		289,844		1,568,809
Q1 11		281,258		1,287,551
Q2 11		294,287		993,264
Q3 11		292,828		700,436
Q4 11		284,220		416,216
Q1 12		215,864		200,352
Q2 12		88,293		112,059
Q3 12		87,817		24,242
Q4 12		24,242		—
	$	40,065,708

⁽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 19

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

DEBT ANALYSIS

Outstanding Debt ⁽¹⁾ 

	Fixed Rate		% of Total Indebtedness		Floating Rate		% of Total Indebtedness		Total
Consolidated
Mortgage Notes Payable	$	1,389,245,208	70.9	%	$	—	0.0	%	$	1,389,245,208	70.9	%
Corporate Notes Payable		94,400,000	4.8	%		—	0.0	%		94,400,000	4.8	%
Partnerships (at PREIT’s share)
Mortgage Notes Payable		96,250,192	4.9	%		38,250,000	2.0	%		134,500,192	6.9	%
Corporate
Revolving Line of Credit		—	0.0	%		342,500,000	17.5	%		342,500,000	17.5	%
TOTAL OUTSTANDING DEBT		1,579,895,400				380,750,000				1,960,645,400
SWAP		—				—				—
TOTAL DEBT AFTER HEDGE	$	1,579,895,400	80.6	%	$	380,750,000	19.4	%	$	1,960,645,400	100.0	%

⁽¹⁾ Includes mark to market of debt.

OUTSTANDING PRINCIPAL BALANCE

Weighted Average Interest Rates

	Principal Balance		Weighted Average Interest Rate
Fixed Rate Debt	$	1,539,829,692	6.60	%
Mortgage Debt Premium		40,065,708	N/A
Floating Rate Debt		380,750,000	4.90	%
TOTAL (1)	$	1,960,645,400	6.26	%

⁽¹⁾ Weighted average interest rate is based on principal balance excluding mortgage debt premium.

Interest Rate Hedging Instruments ⁽¹⁾ 

	Notional Amount		Blended Rate		Latest 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.

Mortgage Maturity Schedule ⁽¹⁾

Year	Mortgage Balance at Maturity		% of Debt Expiring		Cumulative % of Debt Expiring
2006	$	21,750,439	1.6	%	1.6	%
2007		78,236,536	5.9	%	7.5	%
2008		511,693,352	38.6	%	46.2	%
2009		62,380,472	4.7	%	50.9	%
2010		1,411,804	0.1	%	51.0	%
2011		44,451,641	3.4	%	54.4	%
2012		306,579,933	23.1	%	77.5	%
2013		110,457,600	8.3	%	85.8	%
Thereafter		187,460,639	14.2	%	100.0	%
	$	1,324,422,416	100.0	%

⁽¹⁾ The average period to mortgage maturity is 4.3 years. Excludes mark to market of debt.

Average Debt Balance

		Mortgage Debt (1)			Corporate Notes		Line of Credit & Bank Loans			REMIC (1)			TOTAL
Beginning Balance	9/30/2005	$	985,207,921		$	—	$	276,000,000		$	457,328,297		$	1,718,536,218
Paydown	10/17/2005							(5,000,000	)					(5,000,000	)
Acquisition-Springfield Mall	10/31/2005		38,250,000					6,000,000						44,250,000
Other Borrowings	11/10/2005							7,000,000						7,000,000
Other Borrowings	11/16/2005							5,000,000						5,000,000
Refinancing Willow Grove Park Mall	12/1/2005		52,500,000											52,500,000
Paydown	12/9/2005							(50,000,000	)					(50,000,000	)
Other Borrowings	12/15/2005							23,000,000						23,000,000
Acquisition-Woodland Mall	12/30/2005					94,400,000		80,500,000						174,900,000
Debt Amortization (2)	12/31/2005		(4,912,760	)							(4,628,058	)		(9,540,818	)
Ending Balance	12/31/2005	$	1,071,045,161		$	94,400,000	$	342,500,000		$	452,700,239		$	1,960,645,400
Weighted Average Balance		$	1,027,688,899		$	1,026,087	$	275,146,739		$	457,328,297		$	1,761,190,022

⁽¹⁾ Includes mark to market of debt.

⁽²⁾ Includes the amortization of debt premium.

PAGE 20

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

DEBT RATIOS⁽¹⁾

	12/31/2005			12/31/2004
Total Liabilities to Gross Asset Value
Ratio of Total Liabilities(2) to Gross Asset Value(3) less than or equal to 0.65 to 1.00.
Total Liabilities	$	2,014,001,787		$	1,639,890,798
Gross Asset Value	$	3,733,598,088		$	3,447,400,516
Ratio		53.94	%		47.57	%
EBITDA to Interest Expense
Ratio of EBITDA(4) to Interest Expense(5) greater than or equal to 1.90 to 1.00.
EBITDA	$	255,095,286		$	246,445,396
Interest Expense	$	112,081,865		$	104,323,539
Ratio		2.28			2.36
Adjusted EBITDA to Fixed Charges
Ratio of Adjusted EBITDA(6) to Fixed Charges(7) greater than or equal to 1.50 to 1.00.
Adjusted EBITDA	$	253,951,045		$	244,718,046
Fixed Charges	$	148,857,869		$	140,162,712
Ratio		1.71			1.75
Secured Indebtedness to Gross Asset Value
Ratio of Secured Indebtedness(8) to Gross Asset Value(3) less than or equal to 0.60 to 1.00.
Secured Indebtedness	$	1,483,679,690		$	1,269,992,376
Gross Asset Value	$	3,733,598,088		$	3,447,400,516
Ratio		39.74	%		36.84	%

⁽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 calculations above 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, forward commitments and unfunded obligations. Capitalized terms used in this footnote shall have the meanings ascribed to such terms in the Credit Agreement.

⁽⁴⁾ 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.

⁽⁵⁾ Interest Expense defined as: All paid, accrued or capitalized interest expense excluding capitalized interest funded from construction loans plus the greater of (a) ownership share or (b) recourse share of all paid, accrued or capitalized interest expense of unconsolidated affiliates.

⁽⁶⁾ Adjusted EBITDA defined as: EBITDA plus ground rent payments minus the Reserve for Replacements for all Properties.

⁽⁷⁾ 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.

⁽⁸⁾ 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 21

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

PORTFOLIO SUMMARY—RETAIL

(Ordered by State)

Retail Properties (1)	Property Subtype	Same Store/ New	Ownership Interest		Date Acquired	Year Built/ Last Renovated	Years Since Renovation	Owned GLA (anchors)	Owned GLA (non- anchors)	TOTAL Owned GLA	Space Not Owned (Name/GLA)		TOTAL Property GLA	Anchors/ Majors Tenants	Lease Expiration
Wiregrass Commons Dothan, AL	Enclosed Mall	Same Store	100	%	2003	1986/1999	6	—	229,713	229,713	Dillard’s JC Penney McRae’s Parisian	403,163	632,876	Dillard’s JC Penney McRae’s Parisian	N/A N/A N/A N/A
Gadsden Mall Gadsden, AL	Enclosed Mall	New	100	%	2005	1974/1990	15	274,060	203,489	477,549		—	477,549	Belk McRae’s Sears	2/19/11 7/31/14 3/5/09
Christiana Power Center I Newark, DE	Power Center	Same Store	100	%	1998	1998	7	190,814	111,595	302,409		—	302,409	Costco Dick’s Sporting Goods	1/31/19 11/30/13
South Blanding Village Jacksonville, FL	Strip Center	Same Store	100	%	1988/1990	1986	19	73,921	32,836	106,757		—	106,757	Staples Food Lion	9/30/08 7/31/08
Orlando Fashion Square Orlando, FL	Enclosed Mall	New	100	%	2004	1973/2003	2	491,999	436,319	928,318	Sears	155,576	1,083,894	Burdines- Macy’s Dillard’s JC Penney Sears	10/31/71 1/31/14 4/30/13 N/A
Francis Scott Key Mall (2) Frederick, MD	Enclosed Mall	Same Store Redev.	89	%	2003	1978/1991	14	291,620	275,356	566,976	Hecht’s	139,333	706,309	Hecht’s Sears JC Penney Value City	N/A 7/31/08 9/30/11 6/30/10
Valley Mall Hagerstown, MD	Enclosed Mall	Same Store	100	%	2003	1974/1999	6	294,348	364,962	659,310	Sears Hecht’s	243,400	902,710	Sears JC Penney Bon-Ton Hecht’s	N/A 10/3/09 1/31/14 N/A
The Mall at Prince Georges Hyattsville, MD	Enclosed Mall	Same Store	100	%	1998	1959/2004	1	479,619	355,941	835,560		—	835,560	JC Penney Hecht’s Target	7/31/11 10/31/08 1/31/10
Dartmouth Mall Dartmouth, MA	Enclosed Mall	Same Store	100	%	1997	1971/2000	5	208,460	322,500	530,960	Filene’s	140,000	670,960	JC Penney Sears Filene’s	7/31/09 4/12/16 N/A
Woodland Mall Grand Rapids, MI	Enclosed Mall	New	100	%	2005	1968/1998	7	—	397,897	397,897	JC Penney Sears Marshall Field’s Kohl’s	796,186	1,194,083	JC Penney Sears Marshall Field’s Kohl’s	N/A N/A N/A N/A
Cherry Hill Mall Cherry Hill, NJ	Enclosed Mall	Same Store Redev.	100	%	2003	1961/1990	15	—	522,392	522,392	JC Penney Macy’s Strawbridge’s	740,770	1,263,162	JC Penney Macy’s Strawbridge’s	N/A N/A N/A
Moorestown Mall Moorestown, NJ	Enclosed Mall	Same Store	100	%	2003	1963/2000	5	408,356	315,523	723,879	Lord & Taylor Strawbridge’s	321,200	1,045,079	Boscov’s Lord & Taylor Sears Strawbridge’s	10/31/10 N/A 10/5/22 N/A
Phillipsburg Mall(2) Phillipsburg, NJ	Enclosed Mall	Same Store	89	%	2003	1989/2003	2	326,170	245,985	572,155		—	572,155	Bon-Ton JC Penney Sears Kohl’s	1/31/10 3/31/10 4/30/09 1/31/25
Cumberland Mall Vineland, NJ	Enclosed Mall	Same Store Redev.	100	%	2005	1973/2003	2	283,365	365,076	648,441	BJ’s Boscov’s	273,230	921,671	Boscov’s Home Depot JC Penney Value City	N/A 10/31/19 11/30/08 7/31/08
Echelon Mall Voorhees, NJ	Enclosed Mall	Same Store	100	%	2003	1970/1998	7	297,323	433,202	730,525	Boscov’s Strawbridge’s	396,783	1,127,308	Boscov’s Strawbridge’s	N/A N/A
Jacksonville Mall Jacksonville, NC	Enclosed Mall	Same Store	100	%	2003	1981/1998	7	242,115	231,771	473,886		—	473,886	Belk JC Penney Sears	8/21/11 8/31/10 8/4/11

PAGE 22

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

PORTFOLIO SUMMARY—RETAIL

(Ordered by State)

Retail Properties (1)	Property Subtype	Same Store/ New	Ownership Interest		Date Acquired	Year Built/ Last Renovated	Years Since Renovation	Owned GLA (anchors)	Owned GLA (non- anchors)	TOTAL Owned GLA	Space Not Owned (Name/GLA)		TOTAL Property GLA	Anchors / Majors Tenants	Lease Expiration
Crest Plaza Shopping Center Allentown, PA	Strip Center	Same Store	100	%	1964	1959/2003	2	53,445	60,826	114,271	Target	143,130	257,401	Weis Market Target	1/31/07 N/A
Lehigh Valley Mall (4) Allentown, PA	Enclosed Mall	Same Store	50	%	1973	1977/1996	9	212,000	452,703	664,703	JC Penney Strawbridge’s Firestone	371,986	1,036,689	Macy’s JC Penney Strawbridge’s	7/31/12 N/A N/A
South Mall (2) Allentown, PA	Enclosed Mall	Same Store Redev.	89	%	2003	1975/1992	13	188,858	214,742	403,600		—	403,600	Bon-Ton Stein Mart Steve & Barry’s	1/28/11 10/31/06 1/31/11
Whitehall Mall (4) Allentown, PA	Power Center	Same Store	50	%	1964	1964/1998	7	294,635	259,383	554,018		—	554,018	Kohl’s Sears Bed, Bath & Beyond	3/9/07 9/18/11 1/31/10
Logan Valley Mall Altoona, PA	Enclosed Mall	Same Store	100	%	2003	1960/1997	8	454,387	327,241	781,628		—	781,628	JC Penney Kaufmann’s Sears	6/30/17 1/31/10 10/31/16
Capital City Mall Camp Hill, PA	Enclosed Mall	Same Store Redev.	100	%	2003	1974/2005	0	204,301	252,145	456,446	Hecht’s	120,000	576,446	JC Penney Hecht’s Sears	11/30/10 N/A 7/28/09
Chambersburg Mall (2)  Chambersburg, PA	Enclosed Mall	Same Store	89	%	2003	1982	23	241,690	212,252	453,942		—	453,942	Bon-Ton JC Penney Sears Value City	1/28/11 3/31/12 2/9/10 2/28/07
Palmer Park Mall Easton, PA	Enclosed Mall	Same Store	100	%	1972/2003	1972/1998	7	314,235	139,558	453,793		—	453,793	Bon-Ton Boscov’s	7/25/14 10/31/18
Exton Square Mall Exton, PA	Enclosed Mall	Same Store	100	%	2003	1973/2000	5	440,301	369,988	810,289	Strawbridge’s K-Mart	277,468	1,087,757	Boscov’s JC Penney K-Mart Sears Strawbridge’s	10/31/19 5/31/20 N/A 1/31/20 N/A
North Hanover Mall (2)  Hanover, PA	Enclosed Mall	Same Store	89	%	2003	1967/1999	6	288,177	164,903	453,080		—	453,080	Bon-Ton JC Penney Black Rose Antiques Sears	9/30/06 1/31/11 N/A 11/30/09
Paxton Towne Centre Harrisburg, PA	Power Center	Same Store	100	%	1999	2001	4	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
Red Rose Commons (4)  Lancaster, PA	Power Center	Same Store	50	%	1998	1998	7	—	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 (4)  Langhorne, PA	Power Center	Same Store	50	%	1997	1996	9	176,831	280,032	456,863	Home Depot BJ’s	247,623	704,486	Best Buy BJ’s Dick’s Sporting Goods Home Depot Linens N Things	12/31/11 N/A 4/15/11 N/A 2/14/17
Beaver Valley Mall Monaca, PA	Enclosed Mall	Same Store	100	%	2002	1970/1991	14	511,267	434,860	946,127	Kaufmann’s	204,770	1,150,897	Boscov’s JC Penney Sears Kaufmann’s	9/30/18 9/30/17 8/15/11 N/A
Lycoming Mall (2)  Pennsdale, PA	Enclosed Mall	Same Store Redev.	89	%	2003	1978/1990	15	321,441	341,571	663,012	Kaufmann’s	120,000	783,012	Bon-Ton JC Penney Kaufman’s Sears Value City	7/31/11 10/31/10 N/A 7/31/08 7/31/08

PAGE 23

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

PORTFOLIO SUMMARY—RETAIL

(Ordered by State)

Retail Properties (1)	Property Subtype	Same Store/ New	Ownership Interest		Date Acquired	Year Built/ Last Renovated	Years Since Renovation	Owned GLA (anchors)	Owned GLA (non- anchors)	TOTAL Owned GLA	Space Not Owned (Name/GLA)		TOTAL Property GLA	Anchors / Majors Tenants	Lease Expiration
Northeast Tower Center Philadelphia, PA	Power Center	Same Store	100	%	1998/1999	1997/1998	7	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 (3) Philadelphia, PA	Enclosed Mall	Same Store	100	%	2003	1977/1990	15		193,487	193,487		—	193,487	K-Mart Strawbridge’s	N/A N/A
The Gallery at Market East II (3) Philadelphia, PA	Enclosed Mall	Same Store	100	%	2004	1984	21	127,271	206,302	333,573		—	333,573	Burlington Coat Factory	2/28/2032
Plymouth Meeting Mall Plymouth Meeting, PA	Enclosed Mall	Same Store Redev.	100	%	2003	1966/1999	6	185,000	413,614	598,614	Strawbridge’s	214,635	813,249	AMC Theater Boscov’s Strawbridge’s	12/31/18 10/31/16 N/A
Metroplex Shopping Center (4) Plymouth Meeting, PA	Power Center	Same Store	50	%	1999	2001	4	67,185	410,276	477,461	Target Lowe’s	300,729	778,190	Target Lowe’s Giant	N/A N/A 2/28/21
Viewmont Mall (2) Scranton, PA	Enclosed Mall	Same Store	89	%	2003	1968/1996	9	386,262	236,975	623,237	Kaufmann’s	120,000	743,237	JC Penney Sears Kaufmann’s	10/31/10 12/31/10 N/A
Springfield Mall Springfield, PA	Enclosed Mall	New	50	%	2005	1974/1997	8	—	221,514	221,514	Macy’s Strawbridge’s	367,176	588,690	Macy’s Strawbridge’s	N/A N/A
Springfield Park I & II Springfield, PA	Strip Center	Same Store	50	%	1997/1998	1997/1998	7	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) State College, PA	Enclosed Mall	Same Store	89	%	2003	1968/1990	15	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) Uniontown, PA	Enclosed Mall	Same Store	89	%	2003	1972/1990	15	421,378	277,173	698,551		—	698,551	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 Warrington, PA	Power Center	Same Store	100	%	1999	2001	4	—	136,086	136,086	Target Lowe’s	288,916	425,002	Target Lowe’s Genuardi’s	N/A N/A 12/31/21
Washington Crown Center (2) Washington, PA	Enclosed Mall	Same Store	89	%	2003	1969/1999	6	245,401	288,173	533,574	Kaufmann’s	140,095	673,669	Sears Bon-Ton Gander Kaufmann’s	8/17/09 1/31/10 7/24/13 N/A
Wyoming Valley Mall Wilkes-Barre, PA	Enclosed Mall	Same Store	100	%	2003	1974/1995	10	592,110	321,771	913,881		—	913,881	Bon-Ton JC Penney Sears Kaufmann’s	1/31/07 1/31/07 8/1/11 1/31/07
Willow Grove Park Willow Grove, PA	Enclosed Mall	Same Store	100	%	2000/2003	1982/2001	4	225,000	336,629	561,629	Sears Bloomingdale’s Strawbridge	641,861	1,203,490	Sears Bloomingdale’s Strawbridge’s Macy’s	N/A N/A N/A 1/31/22
Magnolia Mall Florence, SC	Enclosed Mall	Same Store	100	%	1997	1979/1992	12	343,118	228,634	571,752		—	571,752	Belk Best Buy JC Penney Sears	1/31/11 1/31/13 3/31/07 10/16/09

PAGE 24

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

PORTFOLIO SUMMARY—RETAIL

(Ordered by State)

Retail Properties (1)	Property Subtype	Same Store/ New	Ownership Interest		Date Acquired	Year Built/ Last Renovated	Years Since Renovation	Owned GLA (anchors)	Owned GLA (non- anchors)	TOTAL Owned GLA	Space Not Owned (Name/GLA)		TOTAL Property GLA	Anchors / Majors Tenants	Lease Expiration
The Commons at Magnolia Florence, SC	Strip Center	Same Store	100	%	1999	1991/2002	3	51,574	52,915	104,489	Target	126,200	230,689	Goody’s Target	5/31/12 N/A
New River Valley Mall(2) Christiansburg, VA	Enclosed Mall	Same Store Redev.	89	%	2003	1988	17	240,306	187,777	428,083		—	428,083	Belk JC Penney Sears	4/19/08 3/31/08 8/2/08
Patrick Henry Mall(2) Newport News, VA	Enclosed Mall	Same Store Redev.	89	%	2003	1988/2005	0	229,369	297,893	527,262	Hecht’s	140,000	667,262	Dillard’s JC Penney Hecht’s	4/30/08 10/31/15 N/A
Valley View Mall La Crosse, WI	Enclosed Mall	Same Store Redev.	100	%	2003	1980/2001	4	96,357	235,400	331,757	Herberger’s Marshall Fields Sears	254,596	586,353	JC Penney Herberger’s Marshall Fields Sears	7/31/10 N/A N/A N/A
Crossroads Mall Beckley, WV	Enclosed Mall	Same Store	100	%	2003	1981	24	256,248	194,980	451,228		—	451,228	Sears JC Penney Belk	3/31/11 12/31/11 11/4/08
Properties Held For Sale
Schuylkill Mall Frackville, PA	Enclosed Mall	Same Store	100	%	2003	1980/1991	14	346,990	318,756	665,746	Bon-Ton	60,916	726,662	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	318,756	665,746	—	60,916	726,662
TOTAL CONTINUING PROPERTIES								11,606,333	13,592,404	25,198,737	—	8,577,454	33,776,191
TOTAL CONSOLIDATED								11,119,133	11,980,368	23,099,501		7,005,597	30,105,098
TOTAL UNCONSOLIDATED PARTNERSHIPS								834,190	1,930,792	2,764,982		1,632,773	4,397,755
TOTAL FOR ALL PROPERTIES								11,953,323	13,911,160	25,864,483		8,638,370	34,502,853
AVERAGE FOR ALL PROPERTIES							8.9

⁽¹⁾ Does not include 108,100 sf at Westgate Anchor pad in Bethlehem, PA 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⁾ The Gallery at Market East I & The Gallery at Market East II were counted as one property.

⁽⁴⁾ Property is managed by a third party.

PAGE 25

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

PORTFOLIO SUMMARY—RETAIL

Summary of Retail Properties

#/Owned GLA		#/Owned GLA		#/Owned GLA				#/Owned GLA
Enclosed Mall		PREIT Managed		Same Store				Consolidated
39	22,475,314	46	23,447,986	37	18,692,622			44	23,099,501
				10	5,146,583	(redev	)
Power/Strip Center		Third Party Managed		New				Unconsolidated Partnerships
12	3,389,169	5	2,416,497	4	2,025,278			7	2,764,982
51	25,864,483	51	25,864,483	51	25,864,483			51	25,864,483

Five largest assets (Owned GLA) as a % of Total	17.1	%
Largest asset (Owned GLA) as a % of Total	3.7	%

PAGE 26

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

ANNUAL ACTIVITY

Property Acquisitions/Dispositions Summary

Name of Project, Location		Square Feet/Acres(1)	Ownership Interest		Date or Expected Date Acquired, Completed, or Sold	Total Cost or Price		PREIT’s Cost or Price		Expected NOI Cap (2)	Major Tenants
Acquisitions:
Cumberland Mall, Vineland, New Jersey	Square Feet	919,241	100	%	1Q05	$	59,500,000	$	59,500,000	10.2%	Boscov’s, JC Penney, Value City
Gadsden Mall, Gadsden, Alabama	Square Feet	477,549	100	%	1Q05		58,800,000		58,800,000	8.5%	Sears, McRae’s, Belk
Springfield Mall, Springfield, Pennsylvania	Square Feet	588,690	50	%	4Q05		103,500,000		51,750,000	7.1%	Macy’s, Strawbridge’s
Woodland Mall, Grand Rapids, Michigan	Square Feet	1,194,083	100	%	4Q05		177,400,000		177,400,000	7.9%	Sears, JCPenney, Marshall Fields
TOTAL RETAIL ACQUISITIONS	Square Feet	3,179,563				$	399,200,000	$	347,450,000
Land Acquisitions:
Land at Lacey Township, Ocean County, New Jersey	Acres	45	100	%	2Q05, 3Q05	$	11,600,000	$	11,600,000	N/A	Home Depot
Land at New Garden, Chester County, Pennsylvania	Acres	33	100	%	2Q05, 4Q05		6,600,000		6,600,000	N/A
Land at Magnolia Mall, Florence, South Carolina(3)	Acres	73	100	%	2Q05		5,900,000		5,900,000	N/A
Land at New River Valley, Christiansburg, Virginia	Acres	15	100	%	3Q05		4,100,000		4,100,000	N/A
TOTAL LAND ACQUISITIONS	Acres	166					28,200,000		28,200,000
Pending Acquisitions:
Land at New Garden, Chester County, Pennsylvania	Acres	155	100	%	1Q06	$	23,500,000	$	23,500,000	N/A
Land in Gainesville, Florida	Acres	540	100	%	1Q06		21,500,000		21,500,000	N/A
TOTAL PENDING ACQUISITIONS	Acres	695				$	45,000,000	$	45,000,000
Dispositions
Parcel of Land - Wiregrass Commons, Dothan, Alabama	Acres	0.2	100	%	1Q05	$	60,536	$	60,536	N/A
Home Depot Parcel, Philadelphia, Pennsylvania	Acres	14	100	%	2Q05		12,500,000		12,500,000	N/A	Home Depot
Christiana Power Center - Phase II Property, Newark, Delaware	Acres	32	50	%	3Q05		17,000,000		9,500,000	N/A
Laurel Mall, Hazleton, Pennsylvania	Square Feet	453,793	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)	Square Feet	254,791	100	%	3Q05		4,300,000		4,300,000	N/A
Festival at Exton, Exton, Pennsylvania	Square Feet	145,043	100	%	4Q05		20,150,000		20,150,000	N/A	Sears Hardware
TOTAL DISPOSITIONS	Square Feet	853,627				$	87,510,536	$	59,910,536
	Acres	46.2
Pending Dispositions:
Schuylkill Mall, Frackville, Pennsylvania	Square Feet	726,662	100	%	2Q06		N/A		N/A	N/A	Bon-Ton, K-Mart, Sears
Land at Florence, South Carolina	Acres	11	100	%	1Q06		N/A		N/A	N/A
TOTAL PENDING DISPOSITIONS	Square Feet	726,662					N/A		N/A
	Acres	11.0

⁽¹⁾ Includes both owned and non-owned square footage.

⁽²⁾ 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.

⁽³⁾ Previously ground leased land.

PAGE 27

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

Development Activity

NAME OF PROJECT LOCATION	TOTAL PROJECTED PROPERTY GLA (sq ft) (1)	PREIT’S SHARE		PREIT’s PROJECTED SHARE OF COST		PREIT’s SHARE OF INVESTMENT TO DATE		EXPECTED STABILIZED NOI CAP		CONSTRUCTION START DATE	DATE OF INITIAL OCCUPANCY	EXPECTED DATE OF COMPLETION	% OF SPENDING COMPLETED		% LEASED		% OCCUPIED		DESCRIPTION
Power Center
Lacey (2) Lacey Township, NJ	296,000	100	%	$	39,300,000	$	16,000,000	6.1	%	4Q05	1Q07	4Q07	41	%	46	%	0	%	A retail shopping center will be built, anchored by Home Depot. There will also be at least two outparcels.
New Garden New Garden Township, PA	TBD	100	%		TBD		8,700,000	TBD		TBD	TBD	TBD	N/	A	N/	A	0	%	TBD
The Plaza at Magnolia Florence, SC	240,000	100	%		11,500,000		4,500,000	11.0	%	1Q06	2Q06	3Q07	39	%	10	%	0	%	Across the street from Magnolia Mall, a 240,000 sf power center will be added with Home Depot as the anchor and four outparcel locations.
New River Valley Retail Center Christiansburg, VA	170,000	100	%		26,800,000		4,500,000	8.7	%	4Q06	3Q07	1Q08	17	%	0	%	0	%	A power center is planned adjacent to the existing New River Valley Mall.
Mixed Use
Gainesville Gainesville, FL	TBD	100	%		TBD		2,900,000	TBD		TBD	TBD	TBD	N/	A	N/	A	0	%	On 2/8/06, PREIT purchased a 540 acre parcel of land for $21.5 million. The Company’s plans include a mixed-use development program.
Land
Valley View Downs(3) South Beaver Township, PA	300,000	TBD			10,000,000		1,200,000	(3	)	TBD	TBD	TBD	12	%	N/	A	0	%	PREIT will manage the development of a harness racetrack and a casino accommodating up to 3,000 slot machines on an approximately 208 acre property.
Pavilion at Market East (4) Philadelphia, PA	TBD	50	%		TBD		1,500,000	TBD		TBD	TBD	TBD	N/	A	N/	A	0	%	TBD
Total Develop- ment Activity	1,006,000			$	87,600,000	$	39,300,000	7.7	%

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

⁽²⁾ Home Depot is expected to open in 1Q07 with the balance of the Shopping Center to open during the 4Q07.

⁽³⁾ Our acquisition of the Site and the construction of the racetrack require the issuance to Valley View Downs of the sole remaining unissued harness racetrack license (the “Racing License”) in Pennsylvania. The construction of the casino requires the issuance to Valley View Downs, under the Pennsylvania Race Horse Development and Gaming Act, of a license for Alternative Gaming. Valley View Downs had been one of two applicants for the Racing License. There have been a number of hearings on the applications before the Pennsylvania Harness Racing Commission, and on November 3, 2005, the Harness Racing Commission issued an order denying award of the license to both of the applicants. On December 8, 2005, Valley View Downs filed with the Commission a motion for reconsideration and request to re-open the record for the purpose of presenting additional information relating to concerns identified in the Order. In addition, Valley View Downs filed an appeal of the ruling in the Pennsylvania Commonwealth Court. Valley View Downs is awaiting action by the Court and Commission regarding these appeals. However, we are unable to predict whether or when Valley View Downs will be issued the Racing License.

⁽⁴⁾ The Partnership’s original development plans for the Pavilion at Market East are under review. The company retains a 50% interest in the partnership.

PAGE 28

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

Redevelopment Activity ⁽¹⁾

NAME OF PROJECT LOCATION	TOTAL PROJECTED PROPERTY GLA (sq ft) (1)	PREIT’S SHARE		PREIT’s PROJECTED SHARE OF COST		PREIT’s SHARE OF INVESTMENT TO DATE		EXPECTED STABILIZED NOI CAP		CONST START DATE	DATE OF INITIAL OCCUPANCY	EXPECTED DATE OF COMPLETION	% OF SPENDING COMPLETED		DESCRIPTION
Enclosed Mall
Capital City Mall Camp Hill, PA	640,000	100	%	$	11,600,000	$	7,200,000	10.8	%	1Q05	4Q05	2Q06	62	%	The existing food court will be redeveloped into new specialty retail space; a new eight-bay food court and two family-themed restaurants will be added.
Patrick Henry Mall Newport News, VA	710,000	100	%		26,900,000		20,300,000	10.0	%	1Q05	4Q05	3Q06	75	%	Dillard’s Men’s store was merged with Dillard’s; Dick’s Sporting Goods, Borders and new mall shops will occupy the old Dillard’s Men’s store.
Cumberland Mall Vineland, NJ	950,000	100	%		5,400,000		2,300,000	10.6	%	2Q05	1Q06	1Q06	43	%	A Best Buy will be added on land adjacent to the Cumberland Mall.
New River Valley Mall Christiansburg, VA	440,000	100	%		23,000,000		1,000,000	8.5	%	4Q05	1Q06	1Q07	4	%	Regal Cinemas will be relocated and expanded into a free-standing 14 screen theater. Also, Red Robin restaurant will be added at the mall.
Valley View Mall LaCrosse, WI	600,000	100	%		3,600,000		700,000	10.0	%	4Q05	3Q06	4Q06	19	%	Barnes & Noble will be added to the mall in a 31,000 sf in- line location.
South Mall Allentown, PA	420,000	100	%		6,900,000		100,000	8.1	%	1Q06	3Q06	4Q07	1	%	Ross Dress For Less will be added at the Stein Mart end of the center and Gold’s Gym will be expanded. A Starbucks drive-through concept will open on a pad location.
Francis Scott Key Mall Frederick, MD	720,000	100	%		3,500,000		100,000	8.5	%	1Q06	3Q06	4Q06	3	%	A 27,000 sf Barnes & Noble will be added.
Lycoming Mall Pennsdale, PA	810,000	100	%		11,800,000		900,000	11.0	%	1Q06	3Q06	4Q06	8	%	Dick’s Sporting Goods, Borders, and Old Navy will occupy in-line space; Applebees and Best Buy will open outparcel locations. A cosmetic renovation is also planned.
Plymouth Meeting Mall Plymouth Meeting, PA	1,100,000	100	%		53,400,000		18,900,000	9.5	%	4Q06	4Q07	4Q08	35	%	A 200,000 sf lifestyle addition will include a 70,000 sf Whole Foods market and 6 themed restaurants.
Cherry Hill Mall Cherry Hill, NJ	1,400,000	100	%		40,000,000		900,000	8.5	%	1Q03	1Q07	4Q07	2	%	PREIT will add Bistro Row and new leaseable area.
Mixed Use
Echelon Mall (Voorhees Town Center) (2) Voorhees, NJ	TBD	TBD			TBD		1,600,000	TBD		TBD	TBD	TBD	TBD		Redevelopment plans for the Echelon Mall include reducing the mall size to allow development of a mixed-use town center at the eastern half of the property, together with renaming the asset as Voorhees Town Center.
Total Redevelopment Activity	7,790,000			$	186,100,000	$	54,000,000	9.4	%

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

⁽²⁾ For more information see PREIT’s press release from 9/14/05.

PAGE 29

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

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

	Number of Stores			GLA of Stores			Annualized Base Rent		PREIT’s share of Annualized Base Rent (2)			Percent of PREIT’s Total Retail Base Rent
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
Gap, Inc.	57	5	62	713,166	35,137	748,303	$	14,655,910	$	13,706,910		4.35	%
Limited Brands, Inc.	87	19	106	541,199	90,262	631,461		13,458,535		12,585,730		3.99	%
Foot Locker, Inc.	81	4	85	424,712	8,532	433,244		8,747,193		8,302,703		2.63	%
JC Penney Company, Inc.	23	6	29	2,295,459	824,327	3,119,786		7,099,316		7,099,316		2.25	%
Sears Holding Corporation	28	4	32	3,000,483	725,201	3,725,684		6,209,010		6,065,264		1.92	%
Zales Corporation	92	0	92	76,152	—	76,152		6,048,343		5,786,519		1.84	%
Luxottica Group S.p.A.	89	2	91	155,664	932	156,596		5,412,590		5,035,793		1.60	%
Hallmark Cards, Inc.	58	2	60	208,655	8,482	217,137		4,839,942		4,645,858		1.47	%
American Eagle Outfitters, Inc.	32	2	34	173,192	8,813	182,005		4,651,146		4,440,259		1.41	%
Sterling Jewelers, Inc.	46	0	46	64,502	—	64,502		4,588,911		4,401,411		1.40	%
Borders Group Inc.	33	2	35	211,133	7,928	219,061		4,262,060		3,995,397		1.27	%
Transworld Entertainment Corp.	31	0	31	157,951	—	157,951		3,422,824		3,335,946		1.06	%
The Finish Line, Inc.	32	1	33	152,080	5,960	158,040		3,292,591		3,292,591		1.04	%
Regis Corporation	94	0	94	113,555	—	113,555		3,412,768		3,284,780		1.04	%
The Bon-Ton Dept. Stores, Inc.	15	1	16	1,077,982	60,916	1,138,898		2,973,869		2,973,869		0.94	%
Aeropostale, Inc.	34	0	34	115,732	—	115,732		2,940,563		2,790,090		0.89	%
Sun Capital Partners, Inc.	27	2	29	87,977	7,810	95,787		2,948,192		2,708,032		0.86	%
Pacific Sunwear of California	35	4	39	112,792	14,352	127,144		2,764,161		2,672,833		0.85	%
Charming Shoppes, Inc.	28	2	30	171,978	12,539	184,517		2,870,047		2,657,420		0.84	%
Shoe Show, Inc.	33	0	33	162,465	—	162,465		2,680,854		2,615,137		0.83	%
Total Top 20 Tenants	955	56	1,011	10,016,829	1,811,191	11,828,020	$	107,278,825	$	102,395,858		32.49	%
Total Retail Leased			3,607			24,017,422	$	328,129,515	$	315,183,488	(3)	100.00	%

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

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

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

PAGE 30

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

Retail Lease Expiration Schedule - Anchors⁽¹⁾

Year	Leases	Gross Leasable Area			Annualized Base Rent						Average Expiring Base Rent psf
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)
2005 and Prior (2)	1	154,852	1.32	%	$	188,400	$	188,400	0.53	%	$	1.22
2006	4	107,219	0.92	%		475,011		475,011	1.34	%		4.43
2007	9	822,331	7.02	%		2,055,073		2,045,173	5.77	%		2.50
2008	17	1,226,147	10.47	%		3,206,682		3,206,682	9.05	%		2.62
2009	12	929,598	7.94	%		2,713,570		2,321,570	6.55	%		2.92
2010	22	2,089,444	17.84	%		6,144,328		6,144,328	17.35	%		2.94
2011	22	1,847,700	15.77	%		6,242,565		5,119,750	14.45	%		3.38
2012	3	302,710	2.58	%		512,783		475,902	1.34	%		1.69
2013	6	453,533	3.87	%		2,728,654		2,728,654	7.70	%		6.02
2014	6	662,582	5.66	%		2,081,285		2,081,285	5.88	%		3.14
2015	1	85,212	0.73	%		468,666		468,666	1.32	%		5.50
Thereafter	23	3,033,063	25.89	%		11,495,182		10,164,586	28.70	%		3.79
Totals:	126	11,714,391	100	%	$	38,312,199	$	35,420,007	100	%	$	3.27
Retail Lease Expiration Schedule - Non-Anchors(1)
Year	Leases	Gross Leasable Area			Annualized Base Rent						Average Expiring Base Rent psf
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)
2005 and Prior (2)	236	595,689	4.84	%	$	13,745,835	$	13,214,865	4.89	%	$	23.08
2006	399	1,057,971	8.60	%		23,527,068		21,580,956	7.98	%		22.24
2007	481	1,346,217	10.94	%		29,726,123		28,257,617	10.45	%		22.08
2008	404	1,175,389	9.55	%		29,040,341		27,896,430	10.31	%		24.71
2009	410	1,136,760	9.24	%		29,682,740		28,683,004	10.60	%		26.11
2010	427	1,404,584	11.42	%		34,117,579		32,775,899	12.12	%		24.29
2011	265	1,238,935	10.07	%		28,966,807		25,264,258	9.34	%		23.38
2012	231	985,049	8.01	%		24,875,807		22,774,882	8.42	%		25.25
2013	180	615,727	5.00	%		16,292,228		15,045,681	5.56	%		26.46
2014	158	568,686	4.62	%		15,416,167		13,510,192	4.99	%		27.11
2015	168	747,196	6.07	%		18,997,490		16,722,379	6.18	%		25.43
Thereafter	122	1,430,828	11.63	%		26,628,525		24,786,130	9.16	%		18.61
Totals:	3,481	12,303,031	100	%	$	291,016,710	$	270,512,293	100	%	$	23.65

⁽¹⁾ Includes only Owned 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 partnership properties based on PREIT’s ownership percentage in the respective partnerships.

PAGE 31

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 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)
Previously Leased Space:
1st Quarter	17	78,456	$	26.14	$	28.40	$	2.26	$	5.02
2nd Quarter	24	82,653		26.05		29.58		3.53		3.32
3rd Quarter (2)	71	124,764		31.73		36.89		5.16		2.17
4th Quarter	27	81,680		20.19		24.40		4.21		2.07
Total or Average	139	367,553	$	26.70	$	30.66	$	3.96	$	3.01
Previously Vacant Space:
1st Quarter	19	42,134	$	—	$	29.51	$	29.51	$	3.42
2nd Quarter	25	138,153		—		16.62		16.62		2.56
3rd Quarter (2)	51	204,737		—		19.26		19.26		0.79
4th Quarter	34	155,048		—		20.37		20.37		2.87
Total or Average	129	540,072	$	—	$	19.70	$	19.70	$	2.05
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
3rd Quarter (6)	93	521,100		10.55		11.05		0.50		0.02
4th Quarter (7)	104	467,354		15.72		16.00		0.28		0.01
Total or Average	375	2,726,068	$	9.77	$	10.07	$	0.29	$	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⁾ Previously leased space includes 32 leases for ATMs. Excluding these leases, previously leased space would have been 39 leases with 124,476 square feet for an average new base rent per square foot of $26.00, an increase of $4.37 per square foot. Previously vacant space includes 12 leases for ATMs. Excluding these leases, previously vacant space would have been 39 leases with 204,629 square feet for an average new base rent psf of $17.43.

⁽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.

⁽⁶⁾ Includes three anchor leases for 308,613 square feet for an average base rent of $3.07 per square foot. Also includes 90 renewal leases for 212,487 square feet with an average new base rent psf of $22.64, representing an increase of $1.24 in base rent psf.

⁽⁷⁾ Includes two anchor leases for 161,445 square feet for an average base rent of $3.32 per square foot. Also includes 102 renewal leases for 305,909 square feet with an average new base rent psf of $22.70, representing an increase of $0.43 in base rent psf.

PAGE 32

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

Capital Expenditures

	Three months ended December 31, 2005						Twelve months ended December 31, 2005
Retail	Consolidated		Unconsolidated Partnerships		Total		Consolidated		Unconsolidated Partnerships		Total
New development projects	$	3,911,000	$	—	$	3,911,000	$	29,714,000	$	—	$	29,714,000
Redevelopment projects with incremental GLA and/or Anchor Replacement		15,841,000		—		15,841,000		38,403,000		650,000		39,053,000
Renovation with no incremental GLA		110,000		—		110,000		1,988,000		83,000		2,071,000
Tenant allowances		6,355,000		9,000		6,364,000		17,401,000		800,000		18,201,000
Operational capital expenditures at properties:
CAM expenditures		4,526,000		—		4,526,000		9,968,000		—		9,968,000
Non-CAM expenditures		758,000		653,000		1,411,000		2,477,000		841,000		3,318,000
Subtotal operational capital expenditures at properties	$	5,284,000	$	653,000	$	5,937,000	$	12,445,000	$	841,000	$	13,286,000
Total	$	31,501,000	$	662,000	$	32,163,000	$	99,951,000	$	2,374,000	$	102,325,000

PAGE 33

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

Retail Portfolio

(Includes Non-Anchor Owned Space)

	December 31, 2005						% Change						December 31, 2004
	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	$	25.01	$	0.82	$	9.57	6.2	%	-0.3	%	7.3	%	$	23.54	$	0.82	$	8.92
Power Centers weighted average	$	16.28	$	0.06	$	3.14	5.4	%	25.7	%	6.0	%	$	15.44	$	0.05	$	2.97
Strip Centers weighted average	$	15.64	$	—	$	2.30	9.2	%	N/A		-7.7	%	$	14.32	$	—	$	2.49
Retail Portfolio weighted average	$	23.55	$	0.69	$	8.49	6.6	%	1.2	%	8.1	%	$	22.09	$	0.68	$	7.86
Consolidated Properties	$	24.01	$	0.78	$	8.94	6.4	%	2.1	%	6.8	%	$	22.56	$	0.76	$	8.37
Partnership Properties	$	21.01	$	0.20	$	6.04	9.2	%	-0.3	%	25.3	%	$	19.25	$	0.20	$	4.82
PRI-managed	$	24.18	$	0.77	$	9.02	7.2	%	1.6	%	8.0	%	$	22.55	$	0.76	$	8.35
Non PRI-managed	$	19.45	$	0.16	$	5.08	0.9	%	-23.7	%	5.4	%	$	19.28	$	0.21	$	4.82
Same Properties/Existing	$	23.04	$	0.71	$	7.96	4.3	%	4.8	%	1.3	%	$	22.09	$	0.68	$	7.86
New	$	28.79	$	0.44	$	13.99	N/A		N/A		N/A			N/A		N/A		N/A

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

(Includes Only Owned Space)

	December 31, 2005				Occupancy Change in % Occupancy				December 31, 2004
	Total w/Anchor % Leased		In-Line only (Non-Anchor) % Leased		Total w/Anchor % Leased		In-Line only (Non-Anchor) % Leased		Total w/Anchor % Leased		In-Line only (Non-Anchor) % Leased
Enclosed Malls weighted average	91.3	%	87.0	%	-0.2	%	-0.3	%	91.5	%	87.3	%
Power Centers weighted average	97.8	%	96.7	%	1.0	%	1.7	%	96.8	%	95.0	%
Strip Centers weighted average	96.1	%	90.7	%	-0.1	%	-0.3	%	96.2	%	91.0	%
Retail Portfolio weighted average	92.2	%	88.4	%	0.0	%	-0.1	%	92.2	%	88.6	%
Consolidated Properties	91.5	%	87.0	%	-0.2	%	-0.6	%	91.7	%	87.6	%
Partnership Properties	98.1	%	97.2	%	1.5	%	2.2	%	96.6	%	95.0	%
PRI-managed	91.5	%	87.1	%	-0.2	%	-0.4	%	91.7	%	87.5	%
Non PRI-managed	98.8	%	98.3	%	1.9	%	2.7	%	96.9	%	95.6	%
Same Properties	92.0	%	88.1	%	-0.2	%	-0.5	%	92.2	%	88.6	%
New	94.5	%	92.0	%	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 34

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

Enclosed Malls

(Includes Only Owned Space)

	December 31, 2005				Change in % Occupancy				December 31, 2004
	Total w/Anchor % Leased		In-Line only (Non-Anchor) % Leased		Total w/Anchor % Leased		In-Line only (Non-Anchor) % Leased		Total w/Anchor % Leased		In-Line only (Non-Anchor) % Leased
Beaver Valley Mall	91.6	%	81.6	%	2.6	%	5.1	%	89.0	%	76.5	%
Capital City	96.4	%	93.5	%	-2.2	%	-4.0	%	98.6	%	97.5	%
Chambersburg Mall	93.2	%	85.4	%	0.9	%	1.9	%	92.3	%	83.5	%
Cherry Hill Mall	95.6	%	95.6	%	3.1	%	3.1	%	92.5	%	92.5	%
Crossroads Mall	96.8	%	92.6	%	1.7	%	4.1	%	95.1	%	88.5	%
Cumberland Mall	97.7	%	95.9	%	N/A		N/A		N/A		N/A
Dartmouth Mall	96.4	%	94.1	%	0.0	%	0.0	%	96.4	%	94.1	%
Echelon Mall	32.2	%	53.3	%	-4.9	%	-10.4	%	37.1	%	63.7	%
Exton Square Mall	93.1	%	84.8	%	-1.0	%	-2.2	%	94.1	%	87.0	%
Francis Scott Key Mall	94.1	%	87.9	%	-1.8	%	-3.7	%	95.9	%	91.6	%
Gadsden Mall	95.0	%	88.2	%	N/A		N/A		N/A		N/A
Jacksonville Mall	97.3	%	94.5	%	-0.5	%	-1.1	%	97.8	%	95.6	%
Lehigh Valley Mall	97.2	%	95.8	%	5.7	%	8.1	%	91.5	%	87.7	%
Logan Valley Mall	97.8	%	94.6	%	-0.1	%	-0.4	%	97.9	%	95.0	%
Lycoming Mall	88.7	%	78.1	%	-0.9	%	-1.7	%	89.6	%	79.8	%
Magnolia Mall	95.4	%	88.5	%	1.5	%	4.0	%	93.9	%	84.5	%
Moorestown Mall	94.2	%	86.7	%	0.1	%	0.0	%	94.1	%	86.7	%
New River Valley Mall	78.5	%	85.6	%	1.8	%	4.1	%	76.7	%	81.5	%
Nittany Mall	93.2	%	86.2	%	-0.3	%	-0.6	%	93.5	%	86.8	%
North Hanover Mall	93.4	%	81.9	%	0.0	%	0.1	%	93.4	%	81.8	%
Orlando Fashion Square	91.1	%	81.0	%	0.4	%	1.8	%	90.7	%	79.2	%
Palmer Park Mall	99.7	%	99.1	%	0.5	%	1.9	%	99.2	%	97.2	%
Patrick Henry Mall	90.4	%	83.0	%	-8.9	%	-15.4	%	99.3	%	98.4	%
Phillipsburg Mall	91.8	%	81.0	%	-0.8	%	-1.6	%	92.6	%	82.6	%
Plymouth Meeting	89.9	%	85.4	%	-2.8	%	-4.0	%	92.7	%	89.4	%
Schuylkill Mall	75.0	%	66.2	%	-1.5	%	-3.1	%	76.5	%	69.3	%
South Mall	92.2	%	85.3	%	-5.1	%	-9.6	%	97.3	%	94.9	%
Springfield Mall	95.9	%	95.9	%	N/A		N/A		N/A		N/A
The Gallery at Market East I	89.2	%	89.2	%	-1.4	%	-1.4	%	90.6	%	90.6	%
The Gallery at Market East II	86.8	%	78.6	%	5.3	%	8.4	%	81.5	%	70.2	%
The Mall at Prince Georges	97.2	%	93.4	%	0.1	%	0.2	%	97.1	%	93.2	%
Uniontown Mall	94.5	%	86.1	%	-1.5	%	-3.8	%	96.0	%	89.9	%
Valley Mall	98.8	%	97.9	%	-0.5	%	-0.9	%	99.3	%	98.8	%
Valley View Mall	92.3	%	89.2	%	-4.0	%	-5.5	%	96.3	%	94.7	%
Viewmont Mall	99.3	%	98.3	%	0.0	%	0.0	%	99.3	%	98.3	%
Washington Crown Center	91.8	%	84.9	%	-2.2	%	-4.0	%	94.0	%	88.9	%
Willow Grove Park	96.1	%	93.4	%	1.0	%	1.6	%	95.1	%	91.8	%
Wiregrass Mall	83.8	%	83.8	%	0.0	%	0.0	%	83.8	%	83.8	%
Woodland Mall	88.1	%	88.1	%	N/A		N/A		N/A		N/A
Wyoming Valley Mall	96.6	%	90.4	%	-1.3	%	-3.7	%	97.9	%	94.1	%
Enclosed Malls weighted average	91.3	%	87.0	%	-0.2	%	-0.3	%	91.5	%	87.3	%
Consolidated Properties	91.1	%	86.5	%	-0.4	%	-0.8	%	91.5	%	87.3	%
Partnership Properties	96.8	%	95.9	%	5.3	%	8.2	%	91.5	%	87.7	%
PRI-managed	91.2	%	86.7	%	-0.3	%	-0.6	%	91.5	%	87.3	%
Non PRI-managed	97.2	%	95.8	%	5.7	%	8.1	%	91.5	%	87.7	%
Same Properties	91.1	%	86.5	%	-0.4	%	-0.8	%	91.5	%	87.3	%
New	94.5	%	92.0	%	N/A		N/A		N/A		N/A
Continuing Operations	91.8	%	87.6	%	-0.2	%	-0.3	%	92.0	%	87.9	%
Discontinued Operations	75.0	%	66.2	%	-1.5	%	-3.1	%	76.5	%	69.3	%

PAGE 35

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

Enclosed Malls

(Includes Non-Anchor Owned Space)

	% of Current Quarter Mall NOI		December 31, 2005										% Change										December 31, 2004
			Avg Base Rent psf (1)		Avg % Rent psf (1)		Additional Charges psf		Avg Comp Sales psf		Occup. Cost Ratio		Avg Base Rent psf (1)		Avg % Rent psf		Additional Charges psf		Avg Comp Sales psf		Occup. Cost Ratio		Avg Base Rent psf (1)		Avg % Rent psf (1)		Additional Charges psf		Avg Comp Sales psf		Occup. Cost Ratio
Sales per square foot above $400
Lehigh Valley Mall			$	29.73	$	0.35	$	9.97	$	468	8.56	%	-5.5	%	-41.7	%	2.8	%	4.4	%	-0.8	%	$	31.47	$	0.60	$	9.69	$	448	9.32	%
Patrick Henry Mall				32.26		2.07		13.33		455	10.48	%	2.6	%	-13.0	%	21.0	%	3.2	%	0.3	%		31.43		2.38		11.02		441	10.17	%
Cherry Hill Mall				38.92		1.05		18.73		444	13.22	%	7.2	%	8.1	%	5.4	%	2.3	%	0.5	%		36.32		0.97		17.76		434	12.69	%
The Gallery at Market East II				29.69		1.34		5.98		440	8.41	%	-0.8	%	-21.1	%	62.8	%	4.5	%	0.0	%		29.92		1.71		3.68		421	8.39	%
Willow Grove Park				40.15		0.16		19.36		416	14.34	%	4.4	%	9.8	%	0.2	%	1.7	%	0.2	%		38.44		0.15		19.31		409	14.16	%
Weighted Average	22.1	%	$	34.85	$	0.88	$	14.50	$	444	11.31	%	1.9	%	-10.8	%	5.6	%	3.0	%	0.0	%	$	34.20	$	0.99	$	13.73	$	432	11.34	%
Sales per square foot between $350 - $400
The Mall at Prince Georges			$	27.31	$	1.84	$	13.77	$	392	10.95	%	9.9	%	14.8	%	4.7	%	5.1	%	0.3	%	$	24.86	$	1.60	$	13.15	$	373	10.62	%
Moorestown Mall				25.01		0.87		13.58		388	10.17	%	0.5	%	-12.8	%	-1.9	%	4.9	%	-0.6	%		24.89		1.00		13.84		370	10.74	%
Dartmouth Mall				21.09		1.31		7.42		386	7.73	%	1.8	%	-10.4	%	7.6	%	-5.2	%	0.6	%		20.72		1.47		6.90		407	7.15	%
Jacksonville Mall				24.25		1.88		5.84		385	8.31	%	10.1	%	28.1	%	7.7	%	6.4	%	0.3	%		22.02		1.47		5.43		362	7.99	%
Exton Square Mall				36.69		0.61		14.91		358	14.59	%	2.7	%	-11.2	%	2.8	%	-4.5	%	1.0	%		35.72		0.69		14.51		375	13.58	%
Weighted Average	19.3	%	$	24.54	$	1.37	$	11.59	$	389	9.64	%	-17.0	%	41.8	%	-15.1	%	4.7	%	-2.3	%	$	29.59	$	0.97	$	13.66	$	372	11.89	%
Sales per square foot between $300 - $350
Viewmont Mall			$	24.14	$	1.15	$	7.58	$	342	9.61	%	4.6	%	-33.6	%	2.7	%	0.6	%	0.1	%	$	23.08	$	1.73	$	7.38	$	340	9.47	%
The Gallery at Market East I				35.56		0.41		9.00		339	13.27	%	6.0	%	0.0	%	-6.0	%	-1.2	%	0.6	%		33.55		0.41		9.57		343	12.69	%
Capital City				26.00		1.11		7.29		336	10.24	%	15.8	%	19.9	%	9.3	%	-3.7	%	1.6	%		22.44		0.93		6.66		349	8.60	%
Valley Mall				18.74		1.38		5.07		331	7.61	%	1.3	%	32.8	%	3.5	%	1.8	%	0.1	%		18.50		1.04		4.89		325	7.52	%
Wyoming Valley Mall				23.19		0.62		7.64		330	9.53	%	-2.2	%	6.7	%	3.3	%	1.2	%	-0.2	%		23.70		0.58		7.39		326	9.72	%
Valley View Mall				23.72		0.87		11.39		321	11.21	%	4.0	%	34.2	%	-14.7	%	3.9	%	-0.7	%		22.81		0.65		13.34		309	11.91	%
Cumberland Mall				16.87		0.85		6.91		319	7.72	%	N/A		N/A		N/A		N/A		N/A			N/A		N/A		N/A		N/A	N/A
Palmer Park Mall				22.74		1.04		8.23		307	10.43	%	1.1	%	-19.2	%	-9.9	%	-9.7	%	0.7	%		22.49		1.29		9.14		340	9.68	%
Logan Valley Mall				22.19		1.61		10.30		304	11.22	%	7.0	%	1.8	%	34.4	%	-0.3	%	1.4	%		20.73		1.59		7.67		305	9.83	%
Orlando Fashion Square				27.32		0.12		10.36		303	12.47	%	-0.5	%	-23.6	%	-28.1	%	2.0	%	-1.7	%		27.45		0.16		14.40		297	14.14	%
Weighted Average	27.1	%	$	24.33	$	0.93	$	8.45	$	322	10.45	%	6.9	%	-10.2	%	7.5	%	-1.6	%	0.8	%	$	22.76	$	1.04	$	7.86	$	328	9.66	%
Sales per square foot under $300
Magnolia Mall			$	24.96	$	0.37	$	8.22	$	297	11.30	%	0.5	%	-3.9	%	-13.9	%	-3.3	%	0.0	%	$	24.83	$	0.39	$	9.54	$	307	11.32	%
Francis Scott Key Mall				22.66		0.60		7.09		291	10.43	%	8.1	%	24.3	%	4.2	%	4.3	%	0.3	%		20.96		0.49		6.80		279	10.12	%
Wiregrass Commons				22.34		1.08		6.99		286	10.64	%	4.9	%	28.0	%	1.5	%	6.3	%	-0.2	%		21.29		0.85		6.89		269	10.79	%
Phillipsburg Mall				24.32		0.72		9.11		283	12.07	%	9.6	%	-6.5	%	-1.9	%	-2.1	%	0.9	%		22.19		0.78		9.28		289	11.16	%
North Hanover Mall				20.43		3.34		6.56		277	10.95	%	7.4	%	214.4	%	9.1	%	5.7	%	1.0	%		19.02		1.06		6.01		262	9.96	%
New River Valley Mall				19.67		1.10		3.28		274	8.78	%	-0.9	%	66.1	%	-24.0	%	10.0	%	-1.2	%		19.85		0.66		4.32		249	9.97	%
South Mall				16.65		0.31		4.57		273	7.89	%	11.3	%	-10.0	%	27.7	%	1.1	%	0.9	%		14.96		0.35		3.58		270	7.00	%
Crossroads Mall				17.12		0.90		5.39		265	8.83	%	3.3	%	6.6	%	-5.3	%	3.1	%	-0.2	%		16.56		0.84		5.69		257	8.99	%
Nittany Mall				21.11		1.26		7.84		258	11.71	%	2.6	%	53.5	%	15.6	%	2.0	%	0.6	%		20.56		0.82		6.78		253	11.13	%
Washington Crown Center				17.31		0.36		4.42		257	8.60	%	5.2	%	133.8	%	-6.2	%	4.5	%	-0.1	%		16.46		0.16		4.71		246	8.67	%
Chambersburg Mall				19.57		0.22		5.18		245	10.19	%	2.4	%	46.9	%	9.1	%	-1.6	%	0.6	%		19.11		0.15		4.75		249	9.64	%
Gadsden Mall				20.23		0.15		8.08		243	11.72	%	N/A		N/A		N/A		N/A		N/A			N/A		N/A		N/A		N/A	N/A
Plymouth Meeting				21.72		0.00		7.64		243	12.08	%	13.0	%	-100.0	%	-3.4	%	-4.3	%	1.3	%		19.21		0.28		7.91		254	10.79	%
Uniontown Mall				16.13		0.84		5.74		243	9.34	%	8.6	%	-21.4	%	62.2	%	-1.6	%	1.5	%		14.85		1.07		3.54		247	7.88	%
Lycoming Mall				15.83		0.91		5.21		238	9.22	%	5.7	%	-3.3	%	1.9	%	-8.1	%	1.1	%		14.98		0.95		5.11		259	8.12	%
Beaver Valley Mall				16.57		0.50		6.07		234	9.89	%	1.4	%	-8.0	%	-5.9	%	-3.3	%	0.2	%		16.33		0.54		6.45		242	9.64	%
Echelon Mall				20.49		0.17		6.44		198	13.69	%	-9.5	%	849.3	%	-31.8	%	-8.8	%	-1.1	%		22.64		0.02		9.45		217	14.80	%
Schuylkill Mall				11.19		0.01		2.76		189	7.39	%	7.3	%	-94.1	%	-13.7	%	-10.8	%	0.9	%		10.43		0.23		3.20		212	6.54	%
Weighted Average	31.4	%	$	19.18	$	0.65	$	6.09	$	255	10.16	%	0.9	%	28.2	%	-10.8	%	-1.8	%	0.0	%	$	19.00	$	0.51	$	6.83	$	260	10.14	%
Does not include
Springfield Mall			$	33.21	$	0.57	$	13.79	$	361	13.18	%	N/A		N/A		N/A		N/A		N/A			N/A		N/A		N/A		N/A	N/A
Woodland Mall			$	42.42	$	0.10	$	24.22	$	360	18.54	%	N/A		N/A		N/A		N/A		N/A			N/A		N/A		N/A		N/A	N/A
Enclosed Malls weighted average			$	25.01	$	0.82	$	9.57	$	329	10.78	%	6.2	%	-0.3	%	7.3	%	0.8	%	0.6	%	$	23.54	$	0.82	$	8.92	$	326	10.21	%
Consolidated Properties			$	24.62	$	0.84	$	9.46	$	322	10.84	%	6.2	%	1.7	%	6.5	%	0.4	%	0.6	%	$	23.17	$	0.83	$	8.88	$	321	10.25	%
Partnership Properties			$	30.88	$	0.42	$	11.22	$	422	10.08	%	-1.9	%	-29.7	%	15.8	%	-5.9	%	0.8	%	$	31.47	$	0.60	$	9.69	$	448	9.32	%
PRI-managed			$	24.80	$	0.84	$	9.56	$	323	10.89	%	7.0	%	1.0	%	7.6	%	0.8	%	0.6	%	$	23.17	$	0.83	$	8.88	$	321	10.25	%
Non PRI-managed			$	29.73	$	0.35	$	9.97	$	468	8.56	%	-5.5	%	-41.7	%	2.8	%	4.4	%	-0.8	%	$	31.47	$	0.60	$	9.69	$	448	9.32	%
Same Properties			$	24.56	$	0.86	$	9.05	$	328	10.50	%	4.3	%	5.2	%	1.4	%	0.7	%	0.3	%	$	23.54	$	0.82	$	8.92	$	326	10.21	%
New			$	28.79	$	0.44	$	13.99	$	330	13.11	%	N/A		N/A		N/A		N/A		N/A			N/A		N/A		N/A		N/A	N/A
Continuing Operations			$	24.87	$	0.88	$	9.20	$	331	10.57	%	4.2	%	5.7	%	1.5	%	0.9	%	0.3	%	$	23.86	$	0.83	$	9.06	$	328	10.30	%
Discontinued Operations			$	11.19	$	0.01	$	2.76	$	189	7.39	%	7.3	%	-94.1	%	-13.7	%	-10.8	%	0.9	%	$	10.43	$	0.23	$	3.20	$	212	6.54	%

⁽¹⁾ Base rent is actual for the fourth quarter 2005. Additional charges and % rent are estimates for 2005.

⁽²⁾ Average comparable sales for December 31, 2004 are actual.

PAGE 36

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

Power Centers

(Includes Non-Anchor Owned Space)

	December 31, 2005						% Change						December 31, 2004
	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		Avg % Rent psf (1)		Additional Charges psf
Christiana Power Center	$	21.60	$	—	$	2.15	5.2	%	N/A		7.7	%	$	20.52	$	—	$	1.99
Creekview Shopping Center		15.67		—		3.24	9.1	%	N/A		23.9	%		14.37		—		2.62
Metroplex Shopping Center		19.75		—		3.65	10.4	%	N/A		1.9	%		17.88		—		3.58
Northeast Tower Center		15.16		—		3.10	4.3	%	N/A		-6.3	%		14.53		—		3.31
Paxton Towne Center		17.62		—		2.73	9.3	%	N/A		2.4	%		16.12		—		2.67
Red Rose Commons		14.69		0.04		2.85	6.0	%	-56.6	%	14.3	%		13.86		0.09		2.50
The Court at Oxford Valley		16.26		—		3.42	5.8	%	N/A		13.6	%		15.37		—		3.01
Whitehall Mall		9.72		0.38		3.15	-9.1	%	41.9	%	-1.2	%		10.69		0.27		3.18
Power Centers weighted average	$	16.28	$	0.06	$	3.14	5.4	%	25.7	%	6.0	%	$	15.44	$	0.05	$	2.97
Consolidated Properties	$	17.25	$	—	$	2.83	6.7	%	N/A		5.8	%	$	16.17	$	—	$	2.68
Partnership Properties	$	15.74	$	0.09	$	3.32	4.7	%	26.2	%	6.1	%	$	15.04	$	0.07	$	3.13
PRI-managed	$	17.25	$	—	$	2.83	6.7	%	N/A		5.8	%	$	16.17	$	—	$	2.68
Non PRI-managed	$	15.74	$	0.09	$	3.32	4.7	%	26.2	%	6.1	%	$	15.04	$	0.07	$	3.13
Same Properties	$	16.28	$	0.06	$	3.14	5.4	%	25.7	%	6.0	%	$	15.44	$	0.05	$	2.97

⁽¹⁾ Base rent is actual for the fourth quarter 2005. Additional charges and % rent are estimates for 2005.

	Occupancy
	December 31, 2005				Change in % Occupancy				December 31, 2004
	Total w/Anchor % Leased		In-Line only (Non- Anchor) % Leased		Total w/Anchor % Leased		In-Line only (Non- Anchor) % Leased		Total w/Anchor % Leased		In-Line only (Non- Anchor) % Leased
Christiana Power Center	100.0	%	100.0	%	0.0	%	0.0	%	100.0	%	100.0	%
Creekview Shopping Center	100.0	%	100.0	%	0.0	%	0.0	%	100.0	%	100.0	%
Metroplex Shopping Center	100.0	%	100.0	%	0.0	%	0.0	%	100.0	%	100.0	%
Northeast Tower Center	96.6	%	94.4	%	6.9	%	19.0	%	89.7	%	75.4	%
Paxton Towne Center	90.0	%	84.9	%	-2.0	%	-3.1	%	92.1	%	87.9	%
Red Rose Commons	99.2	%	99.2	%	0.0	%	0.0	%	99.2	%	99.2	%
The Court at Oxford Valley	100.0	%	100.0	%	0.0	%	0.0	%	100.0	%	100.0	%
Whitehall Mall	98.6	%	97.0	%	1.2	%	3.0	%	97.4	%	94.0	%
Power Centers weighted average	97.8	%	96.7	%	1.0	%	1.7	%	96.8	%	95.0	%
Consolidated Properties	95.4	%	92.5	%	1.5	%	3.6	%	93.9	%	88.9	%
Partnership Properties	99.4	%	99.2	%	0.4	%	0.5	%	99.1	%	98.6	%
PRI-managed	95.4	%	92.5	%	1.5	%	3.6	%	93.9	%	88.9	%
Non PRI-managed	99.4	%	99.2	%	0.4	%	0.5	%	99.1	%	98.6	%
Same Properties	97.8	%	96.7	%	1.0	%	1.7	%	96.8	%	95.0	%

PAGE 37

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

Strip Centers

(Includes Non-Anchor Owned Space)

	December 31, 2005						% Change				December 31, 2004
	Avg Base Rent psf (1)			Additional Charges psf			Avg Base Rent psf		Additional Charges psf		Avg Base Rent psf			Additional Charges psf
Crest Plaza Shopping Center	$	18.26		$	2.41		14.2	%	28.1	%	$	16.00		$	1.89
South Blanding Village		9.92			2.10		5.7	%	-9.6	%		9.38			2.32
Springfield Park I & II		19.87			3.27		12.2	%	-31.8	%		17.71			4.79
The Commons at Magnolia		13.69			1.76		3.9	%	-5.6	%		13.18			1.87
Strip Centers weighted average	$	15.64		$	2.30		9.2	%	-7.7	%	$	14.32		$	2.49
Consolidated Properties	$	14.82		$	2.11		9.3	%	7.1	%	$	13.56		$	1.97
Partnership Properties	$	19.87		$	3.27		12.2	%	-31.8	%	$	17.71		$	4.79
PRI-managed	$	15.64		$	2.30		9.2	%	-7.7	%	$	14.32		$	2.49
Non PRI-managed		N/A			N/A		N/A		N/A			N/A			N/A
Same Properties	$	15.64		$	2.30		9.2	%	-7.7	%	$	14.32		$	2.49
(1)      Base rent is actual for the fourth quarter 2005. Additional charges and % rent are estimates for 2005.
		Occupancy
	December 31, 2005						Change in % Occupancy				December 31, 2004
	Total w/ Anchor % Leased			In-Line only (Non- Anchor) % Leased			Total w/ Anchor % Leased		In-Line only (Non- Anchor) % Leased		Total w/ Anchor % Leased			In-Line only (Non- Anchor) % Leased
Crest Plaza Shopping Center		100.0	%		100.0	%	1.9	%	3.6	%		98.1	%		96.4	%
South Blanding Village		97.9	%		93.3	%	1.1	%	3.7	%		96.8	%		89.6	%
Springfield Park I & II		87.8	%		64.3	%	-3.1	%	-9.1	%		90.9	%		73.5	%
The Commons at Magnolia		100.0	%		100.0	%	0.0	%	0.0	%		100.0	%		100.0	%
Strip Centers weighted average		96.1	%		90.7	%	-0.1	%	-0.3	%		96.2	%		91.0	%
Consolidated Properties		99.3	%		98.5	%	1.0	%	2.3	%		98.3	%		96.2	%
Partnership Properties		87.8	%		64.3	%	-3.1	%	-9.1	%		90.9	%		73.5	%
PRI-managed		96.1	%		90.7	%	-0.1	%	-0.3	%		96.2	%		91.0	%
Same Properties		96.1	%		90.7	%	-0.1	%	-0.3	%		96.2	%		91.0	%

PAGE 38

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

BALANCE SHEET-RECONCILIATION TO GAAP

(Proportionate consolidation method to GAAP)

	December 31, 2005															December 31, 2004
	Proportionate Consolidated Total(1)			Adjustments to Equity Method			Subtotal			Assets Held for Sale			GAAP Total			Proportionate Consolidated Total(1)			Adjustments to Equity Method			Subtotal			Assets Held for Sale			GAAP Total
ASSETS
Investments in real estate, at cost
Retail properties	$	2,985,143,679		$	(169,300,611	)	$	2,815,843,068		$	(8,267,586	)	$	2,807,575,482		$	2,649,708,369		$	(131,343,981	)	$	2,518,364,388		$	(8,108,066	)	$	2,510,256,322
Office/industrial properties		1,504,307			—			1,504,307			(1,504,307	)		—			2,504,211			—			2,504,211			—			2,504,211
Land held for development		5,615,744			—			5,615,744			—			5,615,744			9,862,704			—			9,862,704			—			9,862,704
Construction in progress		57,588,642			(2,220,602	)		55,368,040			—			55,368,040			13,494,757			(2,542,307	)		10,952,450			—			10,952,450
TOTAL INVESTMENTS IN REAL ESTATE		3,049,852,372			(171,521,213	)		2,878,331,159			(9,771,893	)		2,868,559,266			2,675,570,041			(133,886,288	)		2,541,683,753			(8,108,066	)		2,533,575,687
Accumulated depreciation		(253,247,257	)		32,459,101			(220,788,156	)		—			(220,788,156	)		(184,908,972	)		34,023,363			(150,885,609	)		—			(150,885,609	)
Net real estate		2,796,605,115			(139,062,112	)		2,657,543,003			(9,771,893	)		2,647,771,110			2,490,661,069			(99,862,925	)		2,390,798,144			(8,108,066	)		2,382,690,078
Investments in and advances to partnerships		—			41,536,342			41,536,342			—			41,536,342			—			27,243,862			27,243,862			—			27,243,862
		2,796,605,115			(97,525,770	)		2,699,079,345			(9,771,893	)		2,689,307,452			2,490,661,069			(72,619,063	)		2,418,042,006			(8,108,066	)		2,409,933,940
Other assets:
Cash and cash equivalents		25,828,011			(4,186,114	)		21,641,897			—			21,641,897			45,949,300			(5,609,103	)		40,340,197			—			40,340,197
Rents and other receivables		57,898,435			(11,406,791	)		46,491,644			—			46,491,644			43,305,448			(11,328,239	)		31,977,209			—			31,977,209
Other assets held for sale		7,948,349			—			7,948,349			9,771,893			17,720,242			6,837,914			—			6,837,914			8,108,066			14,945,980
Intangible assets		173,594,395			—			173,594,395			—			173,594,395			171,849,678			—			171,849,678			—			171,849,678
Deferred costs, prepaid taxes & exp. & other assets		81,942,422			(12,151,373	)		69,791,049			—			69,791,049			69,906,200			(7,550,567	)		62,355,633			—			62,355,633
TOTAL OTHER ASSETS		347,211,612			(27,744,278	)		319,467,334			9,771,893			329,239,227			337,848,540			(24,487,909	)		313,360,631			8,108,066			321,468,697
TOTAL ASSETS		3,143,816,727			(125,270,048	)		3,018,546,679			—			3,018,546,679			2,828,509,609			(97,106,972	)		2,731,402,637			—			2,731,402,637
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable		1,483,679,692			(134,500,192	)		1,349,179,500			(17,113,872	)		1,332,065,628			1,269,992,376			(107,513,205	)		1,162,479,171			(17,399,761	)		1,145,079,410
Mortgage debt premium		40,065,708			—			40,065,708			—			40,065,708			56,134,624			—			56,134,624			—			56,134,624
Bank loans payable		342,500,000			—			342,500,000			—			342,500,000			271,000,000			—			271,000,000			—			271,000,000
Notes payable		94,400,000			—			94,400,000			—			94,400,000			—			—			—			—			—
Liabilities related to assets held for sale		1,118,865			—			1,118,865			17,113,872			18,232,737			1,156,442			—			1,156,442			17,399,761			18,556,203
Other liabilities		86,856,501			9,230,144			96,086,645			—			96,086,645			93,791,248			10,406,233			104,197,481			—			104,197,481
TOTAL LIABILITIES		2,048,620,766			(125,270,048	)		1,923,350,718			—			1,923,350,718			1,692,074,690			(97,106,972	)		1,594,967,718			—			1,594,967,718
Minority interest		118,320,249			—			118,320,249			—			118,320,249			131,968,917			—			131,968,917			—			131,968,917
Shareholders’ equity:
Shares of beneficial interest at $1 par		36,520,715			—			36,520,715			—			36,520,715			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		912,798,152			—			912,798,152			—			912,798,152			899,506,128			—			899,506,128			—			899,506,128
Restricted stock		(13,359,486	)		—			(13,359,486	)		—			(13,359,486	)		(7,736,812	)		—			(7,736,812	)		—			(7,736,812	)
Accumulated other comprehensive income (loss)		4,376,594			—			4,376,594			—			4,376,594			(1,821,457	)		—			(1,821,457	)		—			(1,821,457	)
Retained earnings		36,514,987			—			36,514,987			—			36,514,987			78,221,233			—			78,221,233			—			78,221,233
TOTAL SHAREHOLDERS’ EQUITY		976,875,712			—			976,875,712			—			976,875,712			1,004,466,002			—			1,004,466,002			—			1,004,466,002
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	3,143,816,727		$	(125,270,048	)	$	3,018,546,679		$	—		$	3,018,546,679		$	2,828,509,609		$	(97,106,972	)	$	2,731,402,637		$	—		$	2,731,402,637

⁽¹⁾ Includes PREIT’s proportionate share of partnership investments “grossed up” to reflect the Company’s share of the Total Assets and Liabilities of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments.

PAGE 39

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

INCOME STATEMENT-RECONCILIATION TO GAAP ⁽¹⁾

QUARTERLY COMPARISON

(Proportionate consolidation method to GAAP)

	Three months ended December 31, 2005																	Three months ended December 31, 2004
	Proportionate Consolidated Total			Adjustments to Equity Method			Subtotal			Assets Held for Sale			GAAP Total			TOTAL % CHANGE		Proportionate Consolidated Total			Adjustments to Equity Method			Subtotal			Assets Held for Sale			GAAP Total
Real estate revenues:
Base rents	$	78,841,861		$	(5,554,193	)	$	73,287,668		$	(1,214,117	)	$	72,073,551		5.7	%	$	75,105,768		$	(5,380,110	)	$	69,725,658		$	(1,530,582	)	$	68,195,076
Straight line rent		1,167,582			(84,464	)		1,083,118			(13,125	)		1,069,993		-18.6	%		1,374,760			(62,109	)		1,312,651			2,519			1,315,170
Percentage rents		4,608,715			(150,590	)		4,458,125			26,605			4,484,730		-4.5	%		4,745,172			(126,665	)		4,618,507			78,122			4,696,629
Expense reimbursements		34,085,626			(1,975,439	)		32,110,187			(726,389	)		31,383,798		13.7	%		29,657,330			(1,723,062	)		27,934,268			(342,782	)		27,591,486
Lease termination revenue		551,452			35,846			587,298			—			587,298		-53.1	%		1,252,868			—			1,252,868			—			1,252,868
Other real estate revenues		7,849,449			(304,459	)		7,544,990			(116,422	)		7,428,568		9.1	%		7,257,712			(258,452	)		6,999,260			(192,499	)		6,806,761
TOTAL REAL ESTATE REVENUES		127,104,685			(8,033,299	)		119,071,386			(2,043,448	)		117,027,938		6.5	%		119,393,610			(7,550,398	)		111,843,212			(1,985,222	)		109,857,990
Property Operating Expenses:
CAM and real estate taxes		(31,780,093	)		1,316,789			(30,463,304	)		619,922			(29,843,382	)	17.1	%		(27,873,049	)		1,657,812			(26,215,237	)		739,353			(25,475,884	)
Utilities		(5,827,525	)		(48,974	)		(5,876,499	)		252,961			(5,623,538	)	27.0	%		(4,490,966	)		(139,784	)		(4,630,750	)		203,645			(4,427,105	)
Other property operating expenses		(10,919,681	)		1,290,936			(9,628,745	)		127,136			(9,501,609	)	10.3	%		(9,400,536	)		692,592			(8,707,944	)		93,242			(8,614,702	)
TOTAL PROPERTY OPERATING EXPENSES		(48,527,299	)		2,558,751			(45,968,548	)		1,000,019			(44,968,529	)	16.7	%		(41,764,551	)		2,210,620			(39,553,931	)		1,036,240			(38,517,691	)
NET OPERATING INCOME		78,577,386			(5,474,548	)		73,102,838			(1,043,429	)		72,059,409		1.0	%		77,629,059			(5,339,778	)		72,289,281			(948,982	)		71,340,299
Management company revenue		1,912,627			—			1,912,627			—			1,912,627		-18.0	%		2,331,728			—			2,331,728			—			2,331,728
Interest and other income		310,511			—			310,511			—			310,511		92.5	%		161,323			—			161,323			—			161,323
Other:
General and administrative		(8,890,316	)		—			(8,890,316	)		—			(8,890,316	)	-13.2	%		(10,241,548	)		—			(10,241,548	)		—			(10,241,548	)
Income taxes		(78,162	)		—			(78,162	)		—			(78,162	)	N/A			—			—			—			—			—
Earnings before interest, taxes, depreciation and amortization (EBITDA)		71,832,046			(5,474,548	)		66,357,498			(1,043,429	)		65,314,069		2.7	%		69,880,562			(5,339,778	)		64,540,784			(948,982	)		63,591,802
Interest expense (2)		(23,357,552	)		2,130,646			(21,226,906	)		310,177			(20,916,729	)	13.3	%		(20,854,458	)		2,083,405			(18,771,053	)		315,357			(18,455,696	)
Depreciation and amortization		(30,407,151	)		1,295,366			(29,111,785	)		63,859			(29,047,926	)	17.6	%		(27,394,242	)		2,558,956			(24,835,286	)		126,026			(24,709,260	)
OTHER EXPENSES		(53,764,703	)		3,426,012			(50,338,691	)		374,036			(49,964,655	)	15.8	%		(48,248,700	)		4,642,361			(43,606,339	)		441,383			(43,164,956	)
Equity in the income of partnerships		—			2,048,536			2,048,536			—			2,048,536		193.7	%		—			697,417			697,417			—			697,417
Gains on sales of interests in real estate		1,389,919			—			1,389,919			—			1,389,919		-3188.6	%		(45,001	)		—			(45,001	)		—			(45,001	)
Income before minority interest		19,457,262			—			19,457,262			(669,393	)		18,787,869		-10.9	%		21,586,861			—			21,586,861			(507,599	)		21,079,262
Minority interest		(2,102,269	)		—			(2,102,269	)		—			(2,102,269	)	-17.0	%		(2,533,010	)		—			(2,533,010	)		—			(2,533,010	)
Income from operations		17,354,993			—			17,354,993			(669,393	)		16,685,600		-10.0	%		19,053,851			—			19,053,851			(507,599	)		18,546,252
Discontinued operations:
Income from discontinued operations		—			—			—			669,393			669,393		31.5	%		—			—			—			508,882			508,882
Minority interest		(338,406	)		—			(338,406	)		—			(338,406	)	-409.4	%		110,648			—			110,648			(1,283	)		109,365
Gains on sales of real estate		2,422,136			—			2,422,136			—			2,422,136		N/A			—			—			—			—			—
TOTAL DISCONTINUED OPERATIONS		2,083,730			—			2,083,730			669,393			2,753,123		345.3	%		110,648			—			110,648			507,599			618,247
NET INCOME	$	19,438,723		$	—		$	19,438,723		$	—		$	19,438,723		1.4	%	$	19,164,499		$	—		$	19,164,499		$	—		$	19,164,499

⁽¹⁾ Includes PREIT’s proportionate share of partnership investments “grossed up” to reflect the Trust’s share of the total revenues and expenses of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments.

⁽²⁾ Capitalized interest expense of $1,108,000 is not included in the quarter ended 12/31/05 and $379,000 is not included in the quarter ended 12/31/04.

PAGE 40

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005)

INCOME STATEMENT-RECONCILIATION TO GAAP ⁽¹⁾ 

ANNUAL COMPARISON

(Proportionate consolidation method to GAAP)

	Twelve months ended December 31, 2005																	Twelve months ended December 31, 2004
	Proportionate Consolidated Total			Adjustments to Equity Method			Subtotal			Assets Held for Sale			GAAP Total			TOTAL % CHANGE		Proportionate Consolidated Total			Adjustments to Equity Method			Subtotal			Assets Held for Sale			GAAP Total
Real estate revenues:
Base rents	$	293,525,801		$	(20,780,246	)	$	272,745,555		$	(5,007,022	)	$	267,738,533		7.8	%	$	286,789,390		$	(21,001,930	)	$	265,787,460		$	(17,309,529	)	$	248,477,931
Straight line rent		4,374,178			(108,101	)		4,266,077			(22,306	)		4,243,771		-13.9	%		5,211,964			(113,878	)		5,098,086			(167,192	)		4,930,894
Percentage rents		10,678,811			(246,607	)		10,432,204			(20,892	)		10,411,312		5.9	%		10,466,743			(314,402	)		10,152,341			(324,845	)		9,827,496
Expense reimbursements		132,869,783			(6,700,686	)		126,169,097			(2,330,856	)		123,838,241		9.0	%		127,250,871			(6,365,863	)		120,885,008			(7,315,293	)		113,569,715
Lease termination revenue		3,297,558			(512,483	)		2,785,075			(932,986	)		1,852,089		-52.9	%		3,953,471			—			3,953,471			(22,410	)		3,931,061
Other real estate revenues		17,645,038			(705,146	)		16,939,892			(368,487	)		16,571,405		10.3	%		16,844,326			(697,021	)		16,147,305			(1,121,938	)		15,025,367
TOTAL REAL ESTATE REVENUES		462,391,169			(29,053,269	)		433,337,900			(8,682,549	)		424,655,351		7.3	%		450,516,765			(28,493,094	)		422,023,671			(26,261,207	)		395,762,464
Property Operating Expenses:
CAM and real estate taxes		(121,974,204	)		5,830,058			(116,144,146	)		2,463,100			(113,681,046	)	14.2	%		(115,302,233	)		5,991,981			(109,310,252	)		9,803,065			(99,507,187	)
Utilities		(23,747,772	)		268,631			(23,479,141	)		1,060,015			(22,419,126	)	12.8	%		(22,771,227	)		460,944			(22,310,283	)		2,436,732			(19,873,551	)
Other property operating expenses		(29,257,106	)		2,732,307			(26,524,799	)		488,293			(26,036,506	)	4.8	%		(29,268,616	)		2,336,235			(26,932,381	)		2,090,923			(24,841,458	)
TOTAL PROPERTY OPERATING EXPENSES		(174,979,082	)		8,830,996			(166,148,086	)		4,011,408			(162,136,678	)	12.4	%		(167,342,076	)		8,789,160			(158,552,916	)		14,330,720			(144,222,196	)
NET OPERATING INCOME		287,412,087			(20,222,273	)		267,189,814			(4,671,141	)		262,518,673		4.4	%		283,174,689			(19,703,934	)		263,470,755			(11,930,487	)		251,540,268
Management company revenue		3,956,046			—			3,956,046			—			3,956,046		-25.0	%		5,276,556			—			5,276,556			—			5,276,556
Interest and other income		1,047,632			—			1,047,632			—			1,047,632		2.0	%		1,027,016			—			1,027,016			—			1,027,016
Other:
General and administrative		(36,723,338	)		—			(36,723,338	)		—			(36,723,338	)	-14.7	%		(43,032,865	)		—			(43,032,865	)		—			(43,032,865	)
Income taxes		(597,141	)		—			(597,141	)		—			(597,141	)	N/A			—			—			—			—			—
Earnings before interest, taxes, depreciation and amortization (EBITDA)		255,095,286			(20,222,273	)		234,873,013			(4,671,141	)		230,201,872		7.2	%		246,445,396			(19,703,934	)		226,741,462			(11,930,487	)		214,810,975
Interest expense (2)		(91,313,447	)		8,165,858			(83,147,589	)		1,240,708			(81,906,881	)	13.3	%		(83,551,894	)		8,316,640			(75,235,254	)		2,921,455			(72,313,799	)
Depreciation and amortization		(115,017,787	)		4,581,995			(110,435,792	)		433,301			(110,002,491	)	13.6	%		(103,092,002	)		5,780,885			(97,311,117	)		502,361			(96,808,756	)
OTHER EXPENSES		(206,331,234	)		12,747,853			(193,583,381	)		1,674,009			(191,909,372	)	13.5	%		(186,643,896	)		14,097,525			(172,546,371	)		3,423,816			(169,122,555	)
Equity in the income of partnerships		—			7,474,420			7,474,420			—			7,474,420		33.3	%		—			5,606,409			5,606,409			—			5,606,409
Gains on sales of interests in real estate		10,110,501			—			10,110,501			—			10,110,501		581.2	%		1,484,182			—			1,484,182			—			1,484,182
Income before minority interest		58,874,553			—			58,874,553			(2,997,132	)		55,877,421		5.9	%		61,285,682			—			61,285,682			(8,506,671	)		52,779,011
Minority interest		(6,383,882	)		—			(6,383,882	)		—			(6,383,882	)	1.7	%		(6,276,320	)		—			(6,276,320	)		—			(6,276,320	)
Income from operations		52,490,671			—			52,490,671			(2,997,132	)		49,493,539		6.4	%		55,009,362			—			55,009,362			(8,506,671	)		46,502,691
Discontinued Operations:
Income from Discontinued Operations		—			—			—			2,997,099			2,997,099		-64.8	%		—			—			—			8,506,671			8,506,671
Minority interest		(1,020,046	)		—			(1,020,046	)		33			(1,020,013	)	51.8	%		(671,753	)		—			(671,753	)		—			(671,753	)
Gains on Disposition of Discontinued Operations		6,158,550			—			6,158,550			—			6,158,550		N/A			(550,000	)		—			(550,000	)		—			(550,000	)
TOTAL DISCONTINUED OPERATIONS		5,138,504			—			5,138,504			2,997,132			8,135,636		11.7	%		(1,221,753	)		—			(1,221,753	)		8,506,671			7,284,918
NET INCOME	$	57,629,175		$	—		$	57,629,175		$	—		$	57,629,175		7.1	%	$	53,787,609		$	—		$	53,787,609		$	—		$	53,787,609

⁽¹⁾ Includes PREIT’s proportionate share of investments “grossed up” to reflect the Trust’s share of the total revenues and expenses of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments.

⁽²⁾ Capitalized interest expense of $2,798,000 is not included in the year ended 12/31/05 and $1,418,000 is not included in the year ended 12/31/04.

PAGE 41

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 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 operating 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.

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