Quarterly Supplemental Disclosure

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

Exhibit 99.1

Pennsylvania Real Estate Investment Trust

LOGO

Supplemental Financial and Operating Information

Quarter Ended December 31, 2007

www.preit.com

NYSE: (PEI)

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

December 31, 2007

Table of Contents



*Introduction*

Company Information		1

Press Release Announcements		2

Market Capitalization and Capital Resources		3

*Operating Results*

Income Statement-Proportionate Consolidation Method - Three Months Ended December 31, 2007 and 2006		4

Income Statement-Proportionate Consolidation Method - Twelve Months Ended December 31, 2007 and 2006		5

Net Operating Income - Three Months Ended December 31, 2007 and 2006		6

Net Operating Income - Twelve Months Ended December 31, 2007 and 2006		7

Computation of Earnings per Share		8

Funds From Operations and Funds Available for Distribution		9

*Operating Statistics*

Leasing Activity Summary		10

Summarized Rent Per Square Foot and Occupancy Percentages		11

Mall Sales and Rents Per Square Foot		12

Mall Occupancy - Owned GLA		13

Power Center and Strip Center Rents Per Square Foot and Occupancy Percentages		14

Top Twenty Tenants		15

Lease Expirations		16

Gross Leasable Area Summary		17

Property Information		18

*Balance Sheet*

Balance Sheet - Proportionate Consolidation Method		21

Balance Sheet - Property Type		22

Investment in Real Estate		23

Property Redevelopment and Repositioning Summary		25

Development Property Summary		26

Capital Expenditures		27

Debt Analysis		28

Debt Schedule		29

Shareholder Information		30

Definitions		31

FORWARD-LOOKING STATEMENTS

This Quarterly Supplemental Financial and Operating Information contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect PREIT’s current views about future events and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. More specifically, PREIT’s business might be affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: general economic, financial and political conditions, including changes in interest rates or the possibility of war or terrorist attacks; changes in local market conditions or other competitive or retail industry factors in the regions where our properties are concentrated; PREIT’s ability to maintain and increase property occupancy and rental rates, and risks relating to development or redevelopment activities, including construction, obtaining entitlements and managing multiple projects simultaneously. In particular, the successful development or redevelopment of any property is subject to a number of risks, including, among others, that PREIT’s development or redevelopment plans might change, its development or redevelopment activities might be delayed and anticipated project costs might increase. Unanticipated expenses or delays would also adversely affect PREIT’s investment returns on a development or redevelopment project. Additionally, there can be no assurance that PREIT’s actual results will not differ significantly from the estimates set forth herein, or that PREIT’s returns on its developments, redevelopments or acquisitions will be consistent with the estimates outlined in the related press releases or other disclosures. Investors are also directed to consider the risks and uncertainties discussed in documents PREIT has filed with the Securities and Exchange Commission and, in particular, PREIT's Annual Report on Form 10-K for the year ended December 31, 2006. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

Pennsylvania Real Estate Investment Trust

Company Information

Background

Pennsylvania Real Estate Investment Trust (“PREIT” or “the Company”), 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. As of December 31, 2007, the Company’s retail portfolio, which was approximately 34.2 million square feet, consisted of 55 properties including 38 shopping malls, 13 power and strip centers, and four properties under development. The Company’s properties are located in 13 states in the eastern half of the United States, primarily in the Mid-Atlantic region.

If you would like to participate in our quarterly conference call or would like additional information about PREIT, please contact:

Nurit Yaron, Vice President - Investor Relations

200 South Broad Street

Philadelphia, PA 19102

Telephone: (215) 875-0735

Fax: (215) 546-2504

Email: yaronn@preit.com

Reporting Calendar

Results for 2008 will be announced as follows (tentative dates):


First Quarter 2008		May 6, 2008
Second Quarter 2008		July 29, 2008
Third Quarter 2008		October 28, 2008
Fourth Quarter 2008		February 24, 2009

Research Coverage


Company	Analyst	Phone Number
Citi Investment Research	Michael Bilerman	(212) 816-1383
	Ambika Goel	(212) 816-6981

Green Street Advisors	Jim Sullivan	(949) 640-8780
	Ben Yang	(949) 640-8780

JP Morgan	Michael W. Mueller	(212) 622-6689
	Sarah E. King	(212) 622-5670

Lehman Brothers	David Harris	(212) 526-1790

Merrill Lynch	Craig Schmidt	(212) 449-1944
	Steve Sakwa	(212) 449-0335
	David Wiggington	(212) 449-2729

Morgan Stanley	Matthew Ostrower	(212) 761-6284

Stifel Nicolaus	Nathan Isbee	(443) 224-1346
	David M. Fick	(443) 224-1308

UBS Securities	Jeffrey Spector	(212) 713-6144

Page 3

Pennsylvania Real Estate Investment Trust

Press Release Announcements

Dividends and Distributions:

February 22, 2007 PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.57 per common share.

January 14, 2008 PREIT announced the tax status of the distributions paid per share during 2007.

October 29, 2007 PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.57 per common share.

Acquisitions, dispositions, development and redevelopment activities:

November 13, 2007 PREIT announced the Grand Opening of New River Valley Center in Christiansburg, Virginia on November 15, 2007.

Financing activities:

January 29, 2008 PREIT announced it completed $55 million in supplemental financing on Cherry Hill Mall.

December 21, 2007 PREIT announced that its Board of Directors has auhorized a two year program to repurchase up to $100 million of the Company’s shares beginning January 1, 2008. Previously, in October 2005, the Company’s Board of Trustees had authorized a program to repurchase up to $100 million of the Company’s common shares. That program will expire by its terms on December 31, 2007.

Other activities:

January 29, 2008 PREIT scheduled its Fourth Quarter and Year End 2007 earnings call for Tuesday, February 26, 2008.

October 30, 2007 PREIT reported its Third Quarter 2007 financial results.

October 16, 2007 PREIT, Bank of America and Tasty Baking announced they are sponsoring the creation of a nine story mural to be known as the Jefferson Gateway Mural in Philadelphia, Pennsylvania.

October 11, 2007 PREIT scheduled its Third Quarter 2007 earnings call for Tuesday, October 30, 2007.

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

Page 4

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources


	Year Ended December 31,						Quarter Ended
	2007			2006			December 31, 2007			September 30, 2007			June 30, 2007			March 31, 2007
TRADING INFORMATION
High Price	$	50.39		$	44.53		$	41.69		$	45.38		$	50.39		$	45.66
Low Price	$	28.48		$	36.75		$	28.48		$	34.37		$	42.64		$	38.52
Average Daily Trading Volume		402,381			223,686			319,781			356,078			577,372			361,403
MARKET CAPITALIZATION (in thousands, except per share amounts)
EQUITY CAPITALIZATION
Common Shares Outstanding		38,953			36,947			38,953			38,664			38,714			37,107
O.P. Units Outstanding		2,395			4,297			2,395			2,682			2,714			4,294

Total Shares and O.P. Units		41,348			41,244			41,348			41,346			41,428			41,401

Market Price (closing price at end of period)	$	29.68		$	39.38		$	29.68		$	38.94		$	44.33		$	44.33
Equity Market Capitalization - Shares and O.P. Units	$	1,227,216		$	1,624,225		$	1,227,216		$	1,610,005		$	1,836,485		$	1,835,306
Preferred Shares, Nominal Value		—			123,750			—			—			123,750			123,750

Total Equity Market Capitalization		1,227,216			1,747,975			1,227,216			1,610,005			1,960,235			1,959,056

DEBT CAPITALIZATION
Unsecured Debt Balance^(1) (2)		617,500			333,148			617,500			533,648			323,648			426,148
Secured Debt Balance		1,831,211			1,789,511			1,831,211			1,837,860			1,843,748			1,723,080

Debt Capitalization		2,448,711			2,122,659			2,448,711			2,371,508			2,167,396			2,149,228

TOTAL MARKET CAPITALIZATION	$	3,675,927		$	3,870,634		$	3,675,927		$	3,981,513		$	4,127,631		$	4,108,284

Preferred Shares/Total Market Capitalization		0.0	%		3.2	%		0.0	%		0.0	%		3.0	%		3.0	%
Shares and O.P. Units/Total Market Capitalization		33.4	%		42.0	%		33.4	%		40.4	%		44.5	%		44.7	%
Debt Capitalization/Total Market Capitalization		66.6	%		54.8	%		66.6	%		59.6	%		52.5	%		52.3	%
Equity Capitalization/Total Market Capitalization		33.4	%		45.2	%		33.4	%		40.4	%		47.5	%		47.7	%
Unsecured Debt Balance/Total Debt		25.2	%		15.7	%		25.2	%		22.5	%		14.9	%		19.8	%
DISTRIBUTIONS PER COMMON SHARE
Ordinary Income	$	2.105		$	1.935		$	0.526		$	0.526		$	0.526		$	0.526
Section 1250 Gain		—			0.037			—			—			—			—
Return of Capital/Non-Taxable		0.175			0.308			0.044			0.044			0.044			0.044

Distributions per share	$	2.280		$	2.280		$	0.570		$	0.570		$	0.570		$	0.570

Annualized Dividend Yield ⁽³⁾		7.7	%		5.8	%		7.7	%		5.9	%		5.1	%		5.1	%
CAPITAL RESOURCES
Cash on Hand	$	33,227		$	18,727		$	33,227		$	23,861		$	12,578		$	20,038
Credit Facility		500,000			500,000			500,000			500,000			500,000			500,000
Amount Outstanding		(330,000	)		(332,000	)		(330,000	)		(245,000	)		(35,000	)		(425,000	)
Letters of Credit		(16,686	)		(24,803	)		(16,686	)		(16,686	)		(14,839	)		(8,739	)

Credit Facility Available ⁽⁴⁾		153,314			143,197			153,314			238,314			450,161			66,261

Shelf Registration		1,000,000			1,000,000			1,000,000			1,000,000			1,000,000			1,000,000
Amount Used		(344,146	)		(344,146	)		(344,146	)		(344,146	)		(344,146	)		(344,146	)

Available Shelf		655,854			655,854			655,854			655,854			655,854			655,854

TOTAL CAPITAL RESOURCES	$	842,395		$	817,778		$	842,395		$	918,029		$	1,118,593		$	742,153

⁽¹⁾	The unsecured debt balance includes $1,148 of corporate notes payable as of December 31, 2006, March 31, 2007, June 30, 2007 and September 30, 2007.

⁽²⁾	The unsecured debt balance includes $287,500 in exchangeable senior notes as of December 31, 2007.

⁽³⁾	Based on closing share price at the end of the period.

⁽⁴⁾	The available Credit Facility is subject to covenants that may restrict amounts that can be borrowed.

Page 5

Pennsylvania Real Estate Investment Trust

Income Statement - Three Months Ended December 31, 2007 and 2006

Proportionate Consolidation Method ⁽¹⁾

(in thousands)


	Three months ended December 31, 2007												Three months ended December 31, 2006
	GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total			GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total
Real estate revenue:
Base rent	$	79,810		$	6,585		$	—		$	86,395		$	78,377		$	6,246		$	866		$	85,489
Expense reimbursements		35,331			2,593			—			37,924			32,302			2,338			433			35,073
Percentage rent		4,145			142			—			4,287			4,747			169			2			4,918
Lease termination revenue		181			19			—			200			205			—			—			205
Other real estate revenue		7,833			448			—			8,281			8,312			455			248			9,015

TOTAL REAL ESTATE REVENUE		127,300			9,787			—			137,087			123,943			9,208			1,549			134,700

Property operating expenses:
CAM and real estate taxes		(34,223	)		(1,998	)		—			(36,221	)		(31,074	)		(1,744	)		(547	)		(33,365	)
Utilities		(5,943	)		(360	)		—			(6,303	)		(5,555	)		(235	)		(218	)		(6,008	)
Other property operating expenses		(8,819	)		(1,027	)		(12	)		(9,858	)		(9,469	)		(806	)		(138	)		(10,413	)

TOTAL PROPERTY OPERATING EXPENSES		(48,985	)		(3,385	)		(12	)		(52,382	)		(46,098	)		(2,785	)		(903	)		(49,786	)

NET OPERATING INCOME		78,315			6,402			(12	)		84,705			77,845			6,423			646			84,914

Management company revenue ⁽²⁾		2,592			—			—			2,592			589			—			—			589
Interest and other income		234			—			—			234			557			—			—			557
Other expenses:
General and administrative expenses		(11,632	)		—			—			(11,632	)		(8,711	)		—			—			(8,711	)
Income taxes and other		108			—			—			108			(15	)		—			—			(15	)
Interest expense ⁽³⁾		(26,522	)		(3,034	)		—			(29,556	)		(24,063	)		(3,141	)		(152	)		(27,356	)
Depreciation and amortization		(35,215	)		(2,003	)		—			(37,218	)		(31,883	)		(1,762	)		(309	)		(33,954	)

Subtotal		7,880			1,365			(12	)		9,233			14,319			1,520			185			16,024
Equity in income of partnerships		1,365			(1,365	)		—			—			1,520			(1,520	)		—			—
Gains on sales of non-operating real estate		—			—			—			—			5,114			—			—			5,114
Minority interest		(531	)		—			—			(531	)		(2,145	)		—			—			(2,145	)

TOTAL CONTINUING OPERATIONS		8,714			—			(12	)		8,702			18,808			—			185			18,993

Discontinued Operations:
Operating results from discontinued operations		(12	)		—			12			—			185			—			(185	)		—
Minority interest		1			—			—			1			(20	)		—			—			(20	)

TOTAL DISCONTINUED OPERATIONS		(11	)		—			12			1			165			—			(185	)		(20	)

NET INCOME		8,703			—			—			8,703			18,973			—			—			18,973

Dividends on preferred shares		—			—			—			—			(3,403	)		—			—			(3,403	)

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	8,703		$	—		$	—		$	8,703		$	15,570		$	—		$	—		$	15,570

⁽¹⁾	Total includes PREIT’s proportionate share of partnership operations “grossed up” to reflect the Company's share of the total revenue and expenses of the underlying properties.

⁽²⁾	For the three months ended December 31, 2007, management company revenue includes a $1.5 million payment received in connection with a participation agreement with a previously managed mall.

⁽³⁾	Capitalized interest expense of $4.4 million and $3.5 million is not included for the three months ended December 31, 2007 and December 31, 2006, respectively.

Page 6

Pennsylvania Real Estate Investment Trust

Income Statement - Twelve Months Ended December 31, 2007 and 2006

Proportionate Consolidation Method ⁽¹⁾

(in thousands)


	Twelve months ended December 31, 2007												Twelve months ended December 31, 2006
	GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total			GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total
Real estate revenue:
Base rent	$	293,110		$	24,427		$	530		$	318,067		$	289,286		$	23,880		$	3,646		$	316,812
Expense reimbursements		136,360			9,300			436			146,096			131,846			8,189			2,002			142,037
Percentage rent		9,067			219			—			9,286			9,942			289			8			10,239
Lease termination revenue		1,589			26			—			1,615			2,789			264			152			3,205
Other real estate revenue		19,470			1,087			107			20,664			21,015			1,072			526			22,613

TOTAL REAL ESTATE REVENUE		459,596			35,059			1,073			495,728			454,878			33,694			6,334			494,906

Property operating expenses:
CAM and real estate taxes		(129,338	)		(7,234	)		(473	)		(137,045	)		(123,503	)		(6,525	)		(2,051	)		(132,079	)
Utilities		(24,998	)		(1,057	)		(259	)		(26,314	)		(23,520	)		(893	)		(991	)		(25,404	)
Other property operating expenses		(26,083	)		(2,760	)		(120	)		(28,963	)		(28,684	)		(2,441	)		(554	)		(31,679	)

TOTAL PROPERTY OPERATING EXPENSES		(180,419	)		(11,051	)		(852	)		(192,322	)		(175,707	)		(9,859	)		(3,596	)		(189,162	)

NET OPERATING INCOME		279,177			24,008			221			303,406			279,171			23,835			2,738			305,744

Management company revenue⁽²⁾		4,419			—			—			4,419			2,422			—			—			2,422
Interest and other income		2,557			—			—			2,557			2,008			—			—			2,008
Other expenses:
General and administrative expenses		(42,946	)		—			—			(42,946	)		(38,528	)		—			—			(38,528	)
Executive separation		—			—			—			—			(3,985	)		—			—			(3,985	)
Income taxes and other		(413	)		—			—			(413	)		(398	)		—			—			(398	)
Interest expense ⁽³⁾		(98,860	)		(12,241	)		(136	)		(111,237	)		(96,382	)		(11,223	)		(1,068	)		(108,673	)
Depreciation and amortization		(132,184	)		(7,130	)		(215	)		(139,529	)		(123,302	)		(7,017	)		(3,871	)		(134,190	)

Subtotal		11,750			4,637			(130	)		16,257			21,006			5,595			(2,201	)		24,400
Equity in income of partnerships		4,637			(4,637	)		—			—			5,595			(5,595	)		—			—
Gains on sales of interests in real estate		579			—			—			579			—			—			—			—
Gains on sales of non-operating real estate		1,731			—			—			1,731			5,495			—			—			5,495
Minority interest		(1,414	)		—			—			(1,414	)		(3,367	)		—			—			(3,367	)

TOTAL CONTINUING OPERATIONS		17,283			—			(130	)		17,153			28,729			—			(2,201	)		26,528

Discontinued Operations:
Operating results from discontinued operations		(130	)		—			130			—			(2,201	)		—			2,201			—
Gain on sale of discontinued operations		6,699			—			—			6,699			1,414			—			—			1,414
Minority interest		(691	)		—			—			(691	)		79			—			—			79

TOTAL DISCONTINUED OPERATIONS		5,878			—			130			6,008			(708	)		—			2,201			1,493

NET INCOME		23,161			—			—			23,161			28,021			—			—			28,021

Dividends on preferred shares		(7,941	)		—			—			(7,941	)		(13,613	)		—			—			(13,613	)
Redemption of preferred shares		13,347			—			—			13,347			—			—			—			—

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	28,567		$	—		$	—		$	28,567		$	14,408		$	—		$	—		$	14,408

⁽¹⁾	Total includes PREIT’s proportionate share of partnership operations “grossed up” to reflect the Company’s share of the total revenue and expenses of the underlying properties.

⁽²⁾	For the twelve months ended December 31, 2007, management company revenue includes a $1.5 million payment received in connection with a participation agreement with a previously managed mall.

⁽³⁾	Capitalized interest expense of $16.3 million and $9.6 million is not included for the twelve months ended December 31, 2007 and December 31, 2006, respectively.

Page 7

Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Three Months Ended December 31, 2007 and 2006

(in thousands)


	Three months ended December 31, 2007												Three months ended December 31, 2006
SAME/NEW STORE RETAIL/OTHER	Same			New			Other			Total			Same			New			Other			Total
Real estate revenue:
Base rent	$	85,846		$	499		$	50		$	86,395		$	84,571		$	—		$	918		$	85,489
Expense reimbursements		37,891			33			—			37,924			34,640			—			433			35,073
Percentage rent		4,287			—			—			4,287			4,915			—			3			4,918
Lease termination revenue		200			—			—			200			205			—			—			205
Other real estate revenue		8,281			—			—			8,281			8,766			—			249			9,015

TOTAL REAL ESTATE REVENUE		136,505			532			50			137,087			133,097			—			1,603			134,700

Property operating expenses:
CAM and real estate taxes		(36,143	)		(45	)		(33	)		(36,221	)		(32,794	)		—			(571	)		(33,365	)
Utilities		(6,287	)		(16	)		—			(6,303	)		(5,790	)		—			(218	)		(6,008	)
Other property operating expenses		(9,813	)		(31	)		(14	)		(9,858	)		(10,275	)		—			(138	)		(10,413	)

TOTAL PROPERTY OPERATING EXPENSES		(52,243	)		(92	)		(47	)		(52,382	)		(48,859	)		—			(927	)		(49,786	)

NET OPERATING INCOME	$	84,262		$	440		$	3		$	84,705		$	84,238		$	—		$	676		$	84,914


	Three months ended December 31, 2007												Three months ended December 31, 2006
SAME STORE COMPARISON	Malls			Power and Strip Centers			Total						Malls			Power and Strip Centers			Total
Real estate revenue:
Base rent	$	78,322		$	7,524		$	85,846					$	77,133		$	7,438		$	84,571
Expense reimbursements		36,158			1,733			37,891						33,134			1,506			34,640
Percentage rent		4,235			52			4,287						4,843			72			4,915
Lease termination revenue		181			19			200						185			20			205
Other real estate revenue		8,224			57			8,281						8,699			67			8,766

TOTAL REAL ESTATE REVENUE		127,120			9,385			136,505						123,994			9,103			133,097

Property operating expenses:
CAM and real estate taxes		(34,328	)		(1,815	)		(36,143	)					(31,202	)		(1,592	)		(32,794	)
Utilities		(6,178	)		(109	)		(6,287	)					(5,744	)		(46	)		(5,790	)
Other property operating expenses		(9,414	)		(399	)		(9,813	)					(9,931	)		(344	)		(10,275	)

TOTAL PROPERTY OPERATING EXPENSES		(49,920	)		(2,323	)		(52,243	)					(46,877	)		(1,982	)		(48,859	)

NET OPERATING INCOME	$	77,200		$	7,062		$	84,262					$	77,117		$	7,121		$	84,238

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

Page 8

Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Twelve Months Ended December 31, 2007 and 2006

(in thousands)


	Twelve months ended December 31, 2007												Twelve months ended December 31, 2006
SAME/NEW STORE RETAIL/OTHER	Same			New			Other			Total			Same			New			Other			Total
Real estate revenue:
Base rent	$	316,831		$	499		$	737		$	318,067		$	312,976		$	—		$	3,836		$	316,812
Expense reimbursements		145,626			33			437			146,096			140,035			—			2,002			142,037
Percentage rent		9,286			—			—			9,286			10,231			—			8			10,239
Lease termination revenue		1,615			—			—			1,615			3,052			—			153			3,205
Other real estate revenue		20,557			—			107			20,664			22,088			—			525			22,613

TOTAL REAL ESTATE REVENUE		493,915			532			1,281			495,728			488,382			—			6,524			494,906

Property operating expenses:
CAM and real estate taxes		(136,464	)		(45	)		(536	)		(137,045	)		(129,991	)		—			(2,088	)		(132,079	)
Utilities		(26,039	)		(16	)		(259	)		(26,314	)		(24,413	)		—			(991	)		(25,404	)
Other property operating expenses		(28,805	)		(31	)		(127	)		(28,963	)		(31,122	)		—			(557	)		(31,679	)

TOTAL PROPERTY OPERATING EXPENSES		(191,308	)		(92	)		(922	)		(192,322	)		(185,526	)		—			(3,636	)		(189,162	)

NET OPERATING INCOME	$	302,607		$	440		$	359		$	303,406		$	302,856		$	—		$	2,888		$	305,744


	Twelve months ended December 31, 2007												Twelve months ended December 31, 2006
SAME STORE COMPARISON	Malls			Power and Strip Centers			Total						Malls			Power and Strip Centers			Total
Real estate revenue:
Base rent	$	286,912		$	29,919		$	316,831					$	283,232		$	29,744		$	312,976
Expense reimbursements		138,863			6,763			145,626						133,732			6,303			140,035
Percentage rent		9,153			133			9,286						10,069			162			10,231
Lease termination revenue		1,589			26			1,615						3,030			22			3,052
Other real estate revenue		20,335			222			20,557						21,858			230			22,088

TOTAL REAL ESTATE REVENUE		456,852			37,063			493,915						451,921			36,461			488,382

Property operating expenses:
CAM and real estate taxes		(129,521	)		(6,943	)		(136,464	)					(123,660	)		(6,331	)		(129,991	)
Utilities		(25,794	)		(245	)		(26,039	)					(24,240	)		(173	)		(24,413	)
Other property operating expenses		(27,748	)		(1,057	)		(28,805	)					(30,290	)		(832	)		(31,122	)

TOTAL PROPERTY OPERATING EXPENSES		(183,063	)		(8,245	)		(191,308	)					(178,190	)		(7,336	)		(185,526	)

NET OPERATING INCOME	$	273,789		$	28,818		$	302,607					$	273,731		$	29,125		$	302,856

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

Page 9

Pennsylvania Real Estate Investment Trust

Computation of

Earnings Per Share

(in thousands, except per share amounts)


	Three months ended December 31,						Twelve months ended December 31,
	2007			2006 ⁽¹⁾			2007			2006 ⁽¹⁾
Income from continuing operations	$	8,714		$	18,808		$	17,283		$	28,729
Redemption of preferred shares		—			—			13,347			—
Dividends on preferred shares		—			(3,403	)		(7,941	)		(13,613	)

Income from continuing operations allocable to common shareholders		8,714			15,405			22,689			15,116
Dividends on unvested restricted shares		(272	)		(247	)		(1,088	)		(1,043	)

Income from continuing operations used to calculate earnings per share		8,442			15,158			21,601			14,073
Minority interest in properties-continuing operations		—			50			—			155

Income from continuing operations used to calculate earnings per share - diluted	$	8,442		$	15,208		$	21,601		$	14,228

Income (loss) from discontinued operations used to calculate earnings per share	$	(11	)	$	165		$	5,878		$	(708	)
*Basic earnings per share:*
Income from continuing operations	$	0.22		$	0.42		$	0.57		$	0.39
Income (loss) from discontinued operations		—			—			0.16			(0.02	)

Income per share - basic	$	0.22		$	0.42		$	0.73		$	0.37

*Diluted earnings per share:*
Income from continuing operations	$	0.22		$	0.42		$	0.57		$	0.39
Income (loss) from discontinued operations		—			—			0.16			(0.02	)

Income per share - diluted	$	0.22		$	0.42		$	0.73		$	0.37

Weighted average of common shares outstanding		38,942			36,888			38,046			36,707
Weighted average of unvested restricted shares		(477	)		(433	)		(469	)		(451	)

Weighted average shares outstanding - basic		38,465			36,455			37,577			36,256
Weighted average effect of common share equivalents		211			586			325			599

Total weighted average shares outstanding - diluted		38,676			37,041			37,902			36,855

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

Page 10

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)


	Three months ended December 31,						Twelve months ended December 31,
	2007			2006⁽¹⁾			2007			2006⁽¹⁾
FUNDS FROM OPERATIONS (FFO)
Net income	$	8,703		$	18,973		$	23,161		$	28,021
Redemption of preferred shares		—			—			13,347			—
Dividends on preferred shares		—			(3,403	)		(7,941	)		(13,613	)
Minority interest		530			2,165			2,105			3,288
Gains on sales of interests in real estate		—			—			(579	)		—
Gains on sales of interests in discontinued operations		—			—			(6,699	)		(1,414	)
Depreciation and amortization:⁽²⁾
Wholly owned and consolidated partnerships		34,650			31,342			129,924			121,090
Unconsolidated partnerships		2,003			1,762			7,130			7,017
Discontinued operations		—			309			215			3,871

FFO	$	45,886		$	51,148		$	160,663		$	148,260

FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	45,886		$	51,148		$	160,663		$	148,260
Adjustments:
Straight line rent		(944	)		(740	)		(2,484	)		(2,918	)
Recurring capital expenditures		(7,946	)		(6,763	)		(17,579	)		(15,172	)
Tenant allowances		(4,511	)		(5,622	)		(14,294	)		(18,521	)
Capitalized leasing costs		(1,327	)		(1,155	)		(4,830	)		(4,613	)
Amortization of debt premium		(3,110	)		(3,325	)		(12,843	)		(13,821	)
Amortization of above- and below- market lease intangibles		28			(95	)		(171	)		101
Redemption of preferred shares		—			—			(13,347	)		—

FAD	$	28,076		$	33,448		$	95,115		$	93,316

Weighted average of common shares outstanding		38,465			36,455			37,577			36,256
Weighted average of O.P. Units outstanding		2,409			3,960			3,308			4,083
Weighted average effect of common share equivalents		211			586			325			599

Total weighted average shares outstanding, including O.P. Units		41,085			41,001			41,210			40,938

Net income per diluted share	$	0.22		$	0.42		$	0.73		$	0.37
FFO per diluted share	$	1.12		$	1.25		$	3.90		$	3.62
FAD per diluted share	$	0.68		$	0.82		$	2.31		$	2.28
Dividend per Common Share	$	0.57		$	0.57		$	2.28		$	2.28
PAYOUT RATIOS
Payout Ratio of FFO								58.5	%		63.0	%
Payout Ratio of FAD								98.8	%		100.0	%

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

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

Page 11

Pennsylvania Real Estate Investment Trust

2007 Leasing Activity Summary


			Average Base Rent psf				Change in Base Rent psf				Annualized Tenant Improvements psf⁽¹⁾
	Number	GLA	Previous		New		Dollar		Percentage		Annualized Tenant Improvements psf⁽¹⁾
Previously Leased Space
1st Quarter	19	60,893	$	29.86	$	32.15	$	2.30	7.7	%	$	0.54
2nd Quarter	29	72,929		25.61		30.94		5.33	20.8	%		2.34
3rd Quarter	29	87,409		36.26		39.09		2.83	7.8	%		2.61
4th Quarter	20	61,028		27.22		30.01		2.79	10.2	%		5.27

Total/Average	97	282,259	$	30.17	$	33.52	$	3.35	11.7	%	$	2.67
Previously Vacant Space
1st Quarter	37	235,070	$	—	$	23.54	$	23.54	N/A		$	6.83
2nd Quarter	48	169,889		—		26.05		26.05	N/A			4.49
3rd Quarter	29	134,218		—		24.71		24.71	N/A			7.48
4th Quarter	24	140,503		—		25.67		25.67	N/A			2.96

Total/Average	138	679,680	$	—	$	24.84	$	24.84	N/A		$	5.57
Renewal ⁽²⁾
1st Quarter	93	386,965	$	18.42	$	21.02	$	2.60	14.1	%	$	0.11
2nd Quarter	107	223,891		26.93		29.45		2.52	9.4	%		0.02
3rd Quarter	79	230,501		20.11		20.52		0.40	2.0	%		0.12
4th Quarter	92	309,289		19.37		20.58		1.21	6.3	%		—

Total/Average	371	1,150,646	$	20.67	$	22.44	$	1.77	8.6	%	$	0.06
Anchor Renewal
1st Quarter	1	100,115	$	2.98	$	2.98	$	—	0.0	%	$	—
2nd Quarter	3	247,882		2.03		2.03		—	0.0	%		—
3rd Quarter	1	130,178		2.91		2.91		—	0.0	%		—
4th Quarter	2	185,418		2.66		2.66		—	0.0	%		—

Total/Average	7	663,593	$	2.52	$	2.52	$	—	0.0	%	$	—

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

⁽²⁾	This category includes expansions, downsizings and lease extensions.

Page 12

Pennsylvania Real Estate Investment Trust

Summarized Rent Per Square Foot and Occupancy Percentages


	December 31, 2007					December 31, 2006					Change
	Avg Base Rent		Occupancy			Avg Base Rent		Occupancy			Avg Base Rent	Occupancy
	Avg Base Rent		Total		Non-Anchor	Avg Base Rent		Total		Non-Anchor	Avg Base Rent	Total		Non-Anchor
Enclosed Malls weighted average ⁽¹⁾	$	30.53	90.4	%	88.1%	$	29.93	87.2	%	86.6%	2.0%	3.2	%	1.5%
Power and Strip Centers weighted average	$	16.19	96.3	%	94.1%	$	15.81	96.9	%	95.1%	2.4%	-0.6	%	-1.1%
Retail Portfolio weighted average	$	27.02	91.2	%	89.1%	$	26.75	88.4	%	87.9%	1.0%	2.8	%	1.1%
Consolidated Properties	$	28.10	90.6	%	88.2%	$	27.91	87.4	%	86.8%	0.7%	3.2	%	1.3%
Unconsolidated Properties	$	22.51	95.7	%	93.9%	$	21.85	96.3	%	94.7%	3.0%	-0.6	%	-0.8%
Same Properties	$	27.28	91.2	%	89.2%	$	26.75	88.4	%	87.9%	2.0%	2.8	%	1.2%
New	$	17.70	89.0	%	80.0%		N/A	N/A		N/A	N/A	N/A		N/A

⁽¹⁾	Average base rent for tenants that lease individual spaces of 10,000 square feet or less and pay fixed rent. Average base rent for tenants greater than 10,000 square feet was $13.51/sq ft as of December 31, 2007, and $12.93/sq ft as of December 31, 2006.

Page 13

Pennsylvania Real Estate Investment Trust

Mall Sales and Rents Per Square Foot


			December 31, 2007						December 31, 2006						Change
	% of Current Quarter Mall NOI		Avg Base Rent⁽¹⁾		Avg Comp Sales⁽²⁾		Occup. Cost Ratio⁽²⁾		Avg Base Rent⁽¹⁾		Avg Comp Sales⁽²⁾		Occup. Cost Ratio⁽²⁾		Avg Base Rent⁽¹⁾		Avg Comp Sales⁽²⁾		Occup. Cost Ratio⁽²⁾
Sales per square foot over $400	40.4	%
Lehigh Valley Mall			$	38.98	$	481	11.3	%	$	37.69	$	492	17.6	%	3.4	%	-2.2	%	-6.3	%
Patrick Henry Mall				36.66		477	10.7	%		35.21		460	10.4	%	4.1	%	3.6	%	0.3	%
Cherry Hill Mall				41.66		476	13.9	%		41.18		477	13.5	%	1.2	%	-0.1	%	0.4	%
Woodland Mall				42.24		467	15.2	%		42.75		379	19.7	%	-1.2	%	23.3	%	-4.5	%
Jacksonville Mall				30.41		458	9.7	%		29.50		456	9.5	%	3.1	%	0.5	%	0.2	%
Willow Grove Park				41.80		437	13.9	%		40.49		446	13.9	%	3.2	%	-2.0	%	0.0	%
Moorestown Mall				35.84		427	14.3	%		36.76		422	13.4	%	-2.5	%	1.4	%	0.9	%
The Mall at Prince Georges				35.14		422	12.4	%		30.89		452	11.6	%	13.7	%	-6.5	%	0.8	%
The Gallery at Market East				35.58		402	12.7	%		35.70		413	12.0	%	-0.3	%	-2.6	%	0.7	%
Sales per square foot between $350 - $400	19.1	%
Dartmouth Mall				29.09		394	11.9	%		28.35		416	11.0	%	2.6	%	-5.5	%	0.9	%
Springfield Mall				32.02		388	13.2	%		31.57		395	12.9	%	1.4	%	-1.6	%	0.3	%
Exton Square Mall				35.94		382	14.4	%		36.12		390	14.4	%	-0.5	%	-2.0	%	0.0	%
Viewmont Mall				29.62		367	11.9	%		30.92		382	11.3	%	-4.2	%	-3.9	%	0.6	%
Capital City Mall				31.42		365	11.0	%		32.36		360	11.0	%	-2.9	%	1.4	%	0.0	%
Francis Scott Key Mall				25.78		364	10.0	%		26.28		330	9.9	%	-1.9	%	10.4	%	0.1	%
Valley View Mall				28.96		364	11.6	%		28.48		353	11.7	%	1.7	%	3.0	%	-0.1	%
Sales per square foot between $300 -$349	13.6	%
Valley Mall				24.72		348	10.9	%		24.42		364	10.0	%	1.2	%	-4.4	%	0.9	%
Wyoming Valley Mall				30.07		345	12.1	%		28.73		346	11.6	%	4.7	%	-0.4	%	0.5	%
Cumberland Mall				26.54		314	12.5	%		25.84		332	11.7	%	2.7	%	-5.2	%	0.8	%
Palmer Park Mall				24.18		312	10.8	%		22.78		309	11.1	%	6.2	%	1.1	%	-0.3	%
Logan Valley Mall				25.29		300	11.6	%		24.42		305	11.2	%	3.6	%	-1.5	%	0.4	%
Sales per square foot under $300	26.9	%
Magnolia Mall				25.61		299	12.5	%		25.21		311	12.7	%	1.6	%	-3.8	%	-0.2	%
Orlando Fashion Square				34.49		292	15.0	%		34.01		325	14.7	%	1.4	%	-10.2	%	0.3	%
Wiregrass Commons				25.17		290	11.1	%		24.73		305	10.2	%	1.8	%	-5.0	%	0.9	%
New River Valley Mall				24.99		290	9.8	%		23.24		292	10.2	%	7.5	%	-0.6	%	-0.4	%
Uniontown Mall				21.09		289	10.7	%		20.55		275	10.2	%	2.7	%	5.0	%	0.5	%
South Mall				23.20		287	11.2	%		22.66		309	10.0	%	2.4	%	-7.2	%	1.2	%
Nittany Mall				21.12		284	10.9	%		21.19		272	10.8	%	-0.3	%	4.3	%	0.1	%
North Hanover Mall				23.67		283	12.1	%		21.39		300	10.2	%	10.7	%	-5.9	%	1.9	%
Washington Crown Center				20.96		280	11.6	%		22.00		296	11.6	%	-4.7	%	-5.3	%	0.0	%
Gadsden Mall				23.16		279	10.5	%		23.31		277	11.7	%	-0.6	%	0.7	%	-1.2	%
Crossroads Mall				20.66		279	9.5	%		19.99		267	9.5	%	3.3	%	4.4	%	0.0	%
Phillipsburg Mall				25.33		269	13.4	%		25.29		281	12.4	%	0.1	%	-4.1	%	1.0	%
Plymouth Meeting Mall				30.76		264	14.2	%		28.86		274	13.8	%	6.6	%	-3.8	%	0.4	%
Lycoming Mall				20.63		262	11.5	%		20.12		254	11.2	%	2.5	%	3.1	%	0.3	%
Beaver Valley Mall				23.53		262	14.6	%		23.53		263	13.3	%	0.0	%	-0.4	%	1.3	%
Chambersburg Mall				19.80		215	12.1	%		20.09		243	10.6	%	-1.4	%	-11.8	%	1.5	%
Voorhees Town Center				28.02		184	14.8	%		29.35		199	16.2	%	-4.5	%	-7.4	%	-1.4	%

Enclosed Malls weighted average			$	30.53	$	358	12.4	%	$	29.93	$	357	12.6	%	2.0	%	0.3	%	-0.2	%

Consolidated Properties			$	30.02	$	349	12.4	%	$	29.50	$	349	12.2	%	1.8	%	0.2	%	0.2	%
Unconsolidated Properties			$	36.49	$	450	11.9	%	$	35.37	$	456	16.1	%	3.2	%	-1.3	%	-4.2	%
Same Properties			$	30.53	$	358	12.4	%	$	29.93	$	357	12.6	%	2.0	%	0.3	%	-0.2	%

⁽¹⁾	Average base rent includes all non-anchor space owned by the Company and leased to tenants that lease individual spaces of 10,000 square feet or less and pay fixed rent.

⁽²⁾	Based on reported sales by all comparable non-anchor tenants that lease individual spaces of 10,000 square feet or less and have occupied the space for at least 24 months.

Page 14

Pennsylvania Real Estate Investment Trust

Mall Occupancy - Owned GLA ⁽¹⁾


	December 31, 2007			December 31, 2006			Change
	Total		Non-Anchor	Total		Non-Anchor	Total		Non-Anchor
Beaver Valley Mall	93.6	%	86.3%	91.6	%	81.6%	2.0	%	4.7%
Capital City Mall	99.7	%	99.4%	95.3	%	92.0%	4.4	%	7.4%
Chambersburg Mall	88.9	%	76.3%	91.5	%	81.7%	-2.6	%	-5.4%
Cherry Hill Mall ⁽²⁾	91.6	%	91.6%	63.0	%	94.8%	28.6	%	-3.2%
Crossroads Mall	92.5	%	82.7%	94.5	%	87.2%	-2.0	%	-4.5%
Cumberland Mall	97.8	%	96.1%	97.6	%	95.8%	0.2	%	0.3%
Dartmouth Mall	95.8	%	93.1%	96.3	%	93.9%	-0.5	%	-0.8%
Exton Square Mall	93.3	%	85.4%	93.6	%	86.0%	-0.3	%	-0.6%
Francis Scott Key Mall	95.8	%	91.4%	97.2	%	93.9%	-1.4	%	-2.5%
Gadsden Mall	91.7	%	80.5%	92.5	%	82.4%	-0.8	%	-1.9%
The Gallery at Market East ⁽³⁾	43.2	%	85.4%	41.8	%	81.8%	1.4	%	3.6%
Jacksonville Mall	94.6	%	89.1%	95.8	%	91.4%	-1.2	%	-2.3%
Lehigh Valley Mall	97.5	%	96.6%	99.1	%	98.7%	-1.6	%	-2.1%
Logan Valley Mall	97.7	%	94.5%	96.9	%	92.6%	0.8	%	1.9%
Lycoming Mall	95.6	%	91.9%	96.6	%	93.6%	-1.0	%	-1.7%
Magnolia Mall	97.5	%	94.5%	93.4	%	83.5%	4.1	%	11.0%
Moorestown Mall	89.6	%	75.9%	86.5	%	69.1%	3.1	%	6.8%
New River Valley Mall	96.8	%	94.6%	97.9	%	96.3%	-1.1	%	-1.7%
Nittany Mall	93.9	%	87.6%	94.2	%	88.3%	-0.3	%	-0.7%
North Hanover Mall	92.1	%	81.6%	75.1	%	72.7%	17.0	%	8.9%
Orlando Fashion Square	91.8	%	82.6%	92.0	%	83.0%	-0.2	%	-0.4%
Palmer Park Mall	97.3	%	91.3%	99.2	%	97.5%	-1.9	%	-6.2%
Patrick Henry Mall	98.8	%	97.7%	95.6	%	91.5%	3.2	%	6.2%
Phillipsburg Mall	91.7	%	80.9%	92.4	%	82.3%	-0.7	%	-1.4%
Plymouth Meeting Mall	80.8	%	72.0%	84.2	%	77.1%	-3.4	%	-5.1%
The Mall at Prince Georges	97.6	%	94.9%	97.3	%	94.2%	0.3	%	0.7%
South Mall	90.8	%	82.7%	93.2	%	87.3%	-2.6	%	-4.6%
Springfield Mall	86.9	%	86.9%	87.5	%	87.5%	-0.6	%	-0.6%
Uniontown Mall	94.2	%	85.3%	94.6	%	86.5%	-0.4	%	-1.2%
Valley Mall	97.8	%	96.1%	97.6	%	95.8%	0.2	%	0.3%
Valley View Mall	93.8	%	91.3%	93.9	%	91.5%	-0.1	%	-0.2%
Viewmont Mall	98.5	%	96.2%	99.2	%	98.0%	-0.7	%	-1.8%
Voorhees Town Center	62.2	%	61.4%	28.7	%	47.4%	33.5	%	14.0%
Washington Crown Center	92.0	%	85.2%	90.6	%	82.6%	1.4	%	2.6%
Willow Grove Park ^{(2) (3)}	70.6	%	96.0%	66.1	%	88.3%	4.5	%	7.7%
Wiregrass Mall	83.4	%	83.4%	86.0	%	86.0%	-2.6	%	-2.6%
Woodland Mall	89.4	%	87.6%	89.3	%	87.5%	0.1	%	0.1%
Wyoming Valley Mall	91.9	%	77.1%	92.7	%	79.1%	-0.8	%	-2.0%

Enclosed Malls weighted average	90.4	%	88.1%	87.2	%	86.6%	3.2	%	1.5%

Consolidated Properties	90.1	%	87.7%	86.8	%	86.1%	3.3	%	1.6%
Unconsolidated Properties	95.2	%	93.8%	96.2	%	95.0%	-1.0	%	-1.2%
Same Properties	90.4	%	88.1%	87.2	%	86.6%	3.2	%	1.5%

⁽¹⁾

Reflects the decommissioning of space related to redevelopment activity. Space is decommissioned once tenant relocations have been completed and demolition/reconfiguration of the former space has commenced. Space is recommissioned once the first tenant in the new/reconfigured wing or area is open and the remaining space is in leasable condition.

⁽²⁾

The total occupancy percentages in 2006 for Cherry Hill Mall and Willow Grove Park include the former Strawbridge’s stores that are currently vacant, pending redevelopment. These vacant department stores represent 33.5% and 29.0% of the owned mall GLA for Cherry Hill Mall and Willow Grove Park, respectively.

⁽³⁾

The total occupancy percentages in 2007 for The Gallery at Market East and Willow Grove Park include the former Strawbridge’s stores that are currently vacant, pending redevelopment. These vacant department stores represents 51.5% and 27.7% of the owned mall GLA for The Gallery at Market East and Willow Grove Park, respectively.

Page 15

Pennsylvania Real Estate Investment Trust

Power and Strip Center Rents Per Square Foot and Occupancy Percentages


	December 31, 2007					December 31, 2006					Change
	Avg Base Rent		Occupancy			Avg Base Rent		Occupancy			Avg Base Rent	Occupancy
	Avg Base Rent		Total		Non-Anchor	Avg Base Rent		Total		Non-Anchor	Avg Base Rent	Total		Non-Anchor
Power and Strip Centers
Christiana Center	$	20.83	100.0	%	100.0%	$	20.83	100.0	%	100.0%	0.0%	0.0	%	0.0%
Creekview		15.15	100.0	%	100.0%		14.64	100.0	%	100.0%	3.5%	0.0	%	0.0%
Crest Plaza		16.95	96.6	%	93.6%		16.91	96.6	%	93.6%	0.3%	0.0	%	0.0%
The Commons at Magnolia		13.77	98.8	%	97.7%		13.27	92.0	%	84.4%	3.8%	6.8	%	13.3%
Metroplex Shopping Center		19.10	100.0	%	100.0%		19.09	100.0	%	100.0%	0.0%	0.0	%	0.0%
New River Valley Center		17.53	80.7	%	80.7%		N/A	N/A		N/A	N/A	N/A		N/A
Northeast Tower Center		15.28	96.6	%	94.4%		14.73	95.9	%	93.2%	3.7%	0.7	%	1.2%
The Court at Oxford Valley		16.43	98.3	%	97.2%		16.16	100.0	%	100.0%	1.7%	-1.7	%	-2.8%
Paxton Towne Centre		15.57	97.9	%	96.8%		14.28	97.9	%	97.0%	9.1%	0.0	%	-0.2%
Red Rose Commons		13.86	99.2	%	99.2%		13.86	99.2	%	99.2%	0.0%	0.0	%	0.0%
Springfield Park		21.73	90.9	%	73.5%		21.68	90.9	%	73.5%	0.2%	0.0	%	0.0%
Sunrise Plaza		20.11	98.2	%	64.8%		N/A	N/A		N/A	N/A	N/A		N/A
Whitehall Mall		11.83	90.1	%	79.0%		11.77	90.1	%	79.0%	0.4%	0.0	%	0.0%

Weighted Average	$	16.19	96.3	%	94.1%	$	15.81	96.9	%	95.1%	2.4%	-0.6	%	-1.0%

Consolidated Properties	$	16.28	96.6	%	94.2%	$	15.47	97.6	%	96.0%	5.2%	-1.0	%	-1.8%
Unconsolidated Properties	$	16.12	95.9	%	93.9%	$	16.05	96.4	%	94.6%	0.5%	-0.5	%	-0.7%
Same Properties	$	16.14	96.9	%	95.2%	$	15.81	96.9	%	95.1%	2.0%	0.0	%	0.0%
New Properties	$	17.70	89.0	%	80.0%		N/A	N/A		N/A	N/A	N/A		N/A

Page 16

Pennsylvania Real Estate Investment Trust

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

(dollars in thousands)


	Paying Minimum Rent		Paying Percentage of Sales in lieu of Minimum Rent⁽²⁾		Total		Minimum Rent
Tenant ⁽¹⁾	Number of Stores	GLA	Number of Stores	GLA	Total Number of Stores	Total GLA	Annualized Minimum Rent		PREIT’s share of Annualized Minimum Rent ⁽³⁾		Percent of PREIT’s Total Retail Minimum Rent
Gap, Inc.	52	664,470	4	33,106	56	697,576	$	13,666	$	12,750	4.05	%
Foot Locker, Inc.	78	406,566	5	16,060	83	422,626		8,847		8,347	2.65	%
JC Penney Company, Inc.	23	2,281,660	6	824,327	29	3,105,987		6,999		6,999	2.23	%
Limited Brands, Inc.	58	273,483	14	43,935	72	317,418		7,146		6,713	2.13	%
Zale Corporation	84	66,880	1	289	85	67,169		5,965		5,641	1.79	%
Sears Holding Corporation	24	2,796,396	6	881,839	30	3,678,235		5,445		5,302	1.69	%
American Eagle Outfitters, Inc.	35	192,940	1	5,013	36	197,953		5,406		5,195	1.65	%
Sterling Jewelers, Inc.	45	67,332	0	—	45	67,332		4,870		4,683	1.49	%
Dick’s Sporting Goods	9	435,893	0	—	9	435,893		5,505		4,628	1.47	%
Luxottica Group S.p.A.	54	129,300	1	548	55	129,848		4,305		3,972	1.26	%
Transworld Entertainment Corp.	39	166,052	4	16,208	43	182,260		4,165		3,933	1.25	%
The Finish Line, Inc.	36	169,561	1	4,336	37	173,897		3,765		3,714	1.18	%
Regis Corporation	101	123,848	0	—	101	123,848		3,776		3,632	1.15	%
Borders Group, Inc.	27	203,411	3	15,476	30	218,887		3,790		3,523	1.12	%
Golden Gate Private Equity ⁽⁴⁾	14	128,746	4	30,311	18	159,057		3,512		3,274	1.04	%
Abercrombie & Fitch Co.	18	124,062	0	—	18	124,062		3,628		3,260	1.04	%
Pacific Sunwear of California	36	128,121	2	7,246	38	135,367		3,359		3,208	1.02	%
Hallmark Cards, Inc.	38	151,966	4	18,198	42	170,164		3,300		3,193	1.02	%
Genesco, Inc.	60	74,793	0	—	60	74,793		3,159		3,094	0.98	%
RadioShack	47	96,673	0	—	47	96,673		2,872		2,828	0.90	%

Total Top 20 Tenants	878	8,682,153	56	1,896,892	934	10,579,045	$	103,480	$	97,889	31.12	%

Total Retail Leases					3,606				$	314,526	100.00	%

⁽¹⁾	Tenant includes all brands and concepts of the tenant.

⁽²⁾	Income from lease(s) in which tenant pays percentage of sales in lieu of minimum rent or common area costs are not included in annualized minimum rent.

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

⁽⁴⁾	Includes 18 Express stores.

Page 17

Pennsylvania Real Estate Investment Trust

Lease Expirations

(dollars in thousands except psf amounts)

Non-Anchors ⁽¹⁾


		Gross Leasable Area			Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring	Expiring GLA	Percent of Total		Min Rent in Expiring Year		PREIT’s Share of Min Rent in Expiring Year ⁽²⁾		Percent of PREIT’s Total		Average Expiring Minimum Rent psf
2007 and Prior	197	415,433	3.3	%		10,185		9,720	3.5	%		24.52
2008	420	1,041,713	8.4	%		27,120		25,771	9.3	%		26.03
2009	482	1,328,048	10.7	%		32,582		31,570	11.3	%		24.53
2010	466	1,571,541	12.6	%		36,571		34,995	12.6	%		23.27
2011	387	1,545,200	12.4	%		36,818		33,072	11.9	%		23.83
2012	293	1,115,003	9.0	%		29,853		27,597	9.9	%		26.77
2013	195	713,549	5.7	%		16,516		15,300	5.5	%		23.15
2014	154	571,324	4.6	%		15,366		13,604	4.9	%		26.90
2015	179	788,742	6.3	%		20,283		17,933	6.4	%		25.72
Thereafter	543	3,355,085	27.0	%		74,485		68,949	24.8	%		22.20

Total/Average	3,490	12,445,638	100.0	%	$	299,779	$	278,510	100.0	%	$	24.09


Anchors ⁽¹⁾

		Gross Leasable Area			Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring ⁽³⁾	Expiring GLA	Percent of Total		Min Rent in Expiring Year		PREIT’s Share of Min Rent in Expiring Year ⁽²⁾		Percent of PREIT's Total		Average Expiring Minimum Rent psf
Holdover	2	153,630	1.3	%	$	404	$	404	1.1	%	$	2.63
2008	5	325,685	2.9	%		933		933	2.6	%		2.87
2009	9	915,799	8.0	%		2,614		2,222	6.2	%		2.85
2010	20	1,886,419	16.6	%		5,410		5,410	15.0	%		2.87
2011	23	1,893,066	16.6	%		6,546		5,423	15.1	%		3.46
2012	9	889,626	7.8	%		2,165		2,129	5.9	%		2.43
2013	12	1,010,702	8.9	%		4,309		4,309	12.0	%		4.26
2014	6	662,582	5.8	%		2,081		2,081	5.8	%		3.14
2015	1	85,212	0.7	%		469		469	1.3	%		5.50
Thereafter	29	3,560,444	31.3	%		13,977		12,636	35.1	%		3.93

Total/Average	116	11,383,165	100.0	%	$	38,908	$	36,015	100.0	%	$	3.42

⁽¹⁾	Only includes owned space.

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

⁽³⁾	Accounts for all contiguous anchor space as one lease.

Page 18

Pennsylvania Real Estate Investment Trust

Retail Gross Leasable Area Summary as of December 31, 2007


	Owned GLA
	Anchors	Non-anchors	Total	GLA Not Owned	Total GLA
Malls ⁽¹⁾
Beaver Valley Mall	511,267	446,011	957,278	204,770	1,162,048
Capital City Mall	204,301	285,758	490,059	120,000	610,059
Chambersburg Mall	241,690	212,666	454,356	—	454,356
Cherry Hill Mall	—	585,734	585,734	478,885	1,064,619
Crossroads Mall	256,248	195,528	451,776	—	451,776
Cumberland Mall	283,365	385,583	668,948	273,230	942,178
Dartmouth Mall	208,460	322,620	531,080	140,000	671,080
Exton Square Mall	440,301	369,959	810,260	277,468	1,087,728
Francis Scott Key Mall	291,620	280,904	572,524	139,333	711,857
Gadsden Mall	274,060	203,117	477,177	—	477,177
The Gallery at Market East ⁽²⁾	683,471	397,478	1,080,949	—	1,080,949
Jacksonville Mall	242,115	233,691	475,806	—	475,806
Lehigh Valley Mall	212,000	561,627	773,627	371,986	1,145,613
Logan Valley Mall	454,387	324,493	778,880	—	778,880
Lycoming Mall	321,441	380,926	702,367	120,000	822,367
Magnolia Mall	343,118	277,942	621,060	—	621,060
Moorestown Mall	408,356	311,202	719,558	321,200	1,040,758
New River Valley Mall	175,306	263,192	438,498	—	438,498
Nittany Mall	221,462	215,654	437,116	95,000	532,116
North Hanover Mall	206,792	154,415	361,207	—	361,207
Orlando Fashion Square	491,999	433,941	925,940	155,576	1,081,516
Palmer Park Mall	314,235	143,459	457,694	—	457,694
Patrick Henry Mall	279,619	294,988	574,607	140,000	714,607
Phillipsburg Mall	326,170	252,377	578,547	—	578,547
Plymouth Meeting Mall	188,429	410,407	598,836	214,635	813,471
The Mall at Prince Georges	479,619	434,198	913,817	—	913,817
South Mall	188,858	216,347	405,205	—	405,205
Springfield Mall	—	221,653	221,653	367,176	588,829
Uniontown Mall	421,378	276,786	698,164	—	698,164
Valley Mall	280,549	373,515	654,064	243,400	897,464
Valley View Mall	96,357	247,191	343,548	254,596	598,144
Viewmont Mall	386,262	243,665	629,927	120,000	749,927
Voorhees Town Center	4,404	229,034	233,438	396,783	630,221
Washington Crown Center	245,401	290,475	535,876	140,095	675,971
Willow Grove Park ⁽³⁾	443,430	345,978	789,408	413,121	1,202,529
Wiregrass Commons	—	229,798	229,798	403,163	632,961
Woodland Mall	71,000	413,121	484,121	725,186	1,209,307
Wyoming Valley Mall	592,110	321,706	913,816	—	913,816

Total Malls (38 properties)	10,789,580	11,787,139	22,576,719	6,115,603	28,692,322

Power and Strip Centers
Christiana Center	190,814	111,595	302,409	—	302,409
Creekview	—	136,086	136,086	288,916	425,002
Crest Plaza	53,445	60,826	114,271	143,130	257,401
The Commons at Magnolia	50,571	52,723	103,294	126,200	229,494
Metroplex Shopping Center	67,185	410,276	477,461	300,729	778,190
New River Valley Center	—	156,073	156,073	—	156,073
Northeast Tower Center	119,388	182,536	301,924	175,311	477,235
The Court at Oxford Valley	176,831	280,072	456,903	247,623	704,526
Paxton Towne Centre	151,627	277,836	429,463	273,058	702,521
Red Rose Commons	—	263,452	263,452	199,590	463,042
Springfield Park	83,539	43,432	126,971	145,669	272,640
Sunrise Plaza	132,874	7,100	139,974	—	139,974
Whitehall Mall	294,635	262,422	557,057	—	557,057

Total Power and Strip Centers (13 properties)	1,320,909	2,244,429	3,565,338	1,900,226	5,465,564

CONSOLIDATED PROPERTIES	11,276,299	11,988,634	23,264,933	6,383,056	29,647,989
UNCONSOLIDATED PROPERTIES	834,190	2,042,934	2,877,124	1,632,773	4,509,897
TOTAL PROPERTIES	12,110,489	14,031,568	26,142,057	8,015,829	34,157,886

⁽¹⁾	Does not include 108,100 sf anchor pad leased to Bon-Ton at the Westgate Shopping Center in Bethlehem, PA, with an expiration date of 11/23/2010.

⁽²⁾	Includes 556,200 square feet of anchor space subject to redevelopment plans.

⁽³⁾	Includes 218,430 square feet of anchor space under redevelopment.

Page 19

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2007


Properties ⁽¹⁾	Ownership Interest	Date Acquired	Year Built/Last Renovated	Years Since Renovation	Anchors / Major Tenants	Lease Expiration
MALLS
Beaver Valley Mall Monaca, PA	100%	2002	1970/1991	16	Boscov’s JC Penney Macy’s Sears	9/30/18 9/30/17 (2) 8/15/11
Capital City Mall Camp Hill, PA	100%	2003	1974/2005	2	JC Penney Macy’s Sears	11/30/10 (2) 7/28/09
Chambersburg Mall Chambersburg, PA	100%	2003	1982	25	Bon-Ton JC Penney Sears Value City	1/28/11 3/31/12 2/9/10 8/31/07
Cherry Hill Mall Cherry Hill, NJ	100%	2003	1961/1990	17	JC Penney Macy’s	(2) (2)
Crossroads Mall ⁽³⁾ Beckley, WV	100%	2003	1981	26	Belk JC Penney Sears	11/4/08 12/31/11 3/31/11
Cumberland Mall Vineland, NJ	100%	2005	1973/2003	4	Boscov’s BJ's Home Depot JC Penney Value City	(2) (2) 10/31/19 11/30/08 7/31/13
Dartmouth Mall Dartmouth, MA	100%	1997	1971/2000	7	JC Penney Macy’s Sears	7/31/09 (2) 4/12/16
Exton Square Mall ⁽³⁾ Exton, PA	100%	2003	1973/2000	7	Boscov’s JC Penney K-Mart Macy’s Sears	10/31/19 5/31/20 (2) (2) 1/31/20
Francis Scott Key Mall Frederick, MD	100%	2003	1978/1991	16	JC Penney Macy’s Sears Value City	9/30/11 (2) 7/31/13 6/30/10
Gadsden Mall Gadsden, AL	100%	2005	1974/1990	17	Belk Sears	7/31/14 3/5/09
The Gallery at Market East ⁽³⁾ Philadelphia, PA	100%	2003	1977/1990	17	Burlington Coat Factory	2/28/32
Jacksonville Mall Jacksonville, NC	100%	2003	1981/1998	9	Belk JC Penney Sears	8/21/11 8/31/10 8/4/11
Lehigh Valley Mall ⁽⁴⁾ Allentown, PA	50%	1973	1977/2007	0	Boscov’s JC Penney Macy’s	(2) (2) 7/31/12
Logan Valley Mall Altoona, PA	100%	2003	1960/1997	10	JC Penney Macy’s Sears	1/31/17 1/31/10 10/31/16
Lycoming Mall Pennsdale, PA	100%	2003	1978/1990	17	Bon-Ton JC Penney Macy’s Sears Value City	7/31/11 10/31/10 (2) 7/31/13 7/31/08
Magnolia Mall Florence, SC	100%	1997	1979/1992	15	Belk JC Penney Sears	1/31/11 3/31/12 10/16/09
Moorestown Mall Moorestown, NJ	100%	2003	1963/2000	7	Boscov’s Lord & Taylor Macy’s Sears	10/31/10 (2) (2) 10/5/22
New River Valley Mall Christiansburg, VA	100%	2003	1988/2007	0	Belk JC Penney Sears	4/19/11 3/31/13 8/2/13
Nittany Mall State College, PA	100%	2003	1968/1990	17	Bon-Ton JC Penney Macy’s Sears	1/31/08 7/31/10 (2) 8/31/10
North Hanover Mall Hanover, PA	100%	2003	1967/1999	8	Dick’s Sporting Goods JC Penney Sears	1/31/18 1/31/11 11/30/09

Page 20

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2007 (continued)


Properties ⁽¹⁾	Ownership Interest	Date Acquired	Year Built/Last Renovated	Years Since Renovation	Anchors /Major Tenants	Lease Expiration
Orlando Fashion Square ⁽³⁾ Orlando, FL	100%	2004	1973/2003	4	Dillard’s JC Penney Macy’s Sears	1/31/14 4/30/13 10/31/71 (2)
Palmer Park Mall Easton, PA	100%	1972/2003	1972/1998	9	Bon-Ton Boscov’s	7/25/14 10/31/18
Patrick Henry Mall Newport News, VA	100%	2003	1988/2005	2	Dick’s Sporting Goods Dillard’s JC Penney Macy’s	1/31/22 9/22/13 1/31/15 (2)
Phillipsburg Mall Phillipsburg, NJ	100%	2003	1989/2003	4	Bon-Ton JC Penney Kohl’s Sears	1/31/10 3/31/10 1/31/25 4/30/09
Plymouth Meeting Mall ⁽³⁾ Plymouth Meeting, PA	100%	2003	1966/1999	8	AMC Theater Boscov’s Macy’s	12/31/18 10/31/16 (2)
The Mall at Prince Georges Hyattsville, MD	100%	1998	1959/2004	3	JC Penney Macy’s Target	7/31/11 10/31/18 1/31/10
South Mall Allentown, PA	100%	2003	1975/1992	15	Bon-Ton Stein Mart Steve & Barry’s	1/28/11 10/31/11 1/31/11
Springfield Mall Springfield, PA	50%	2005	1974/1997	10	Macy's	(2)
Uniontown Mall ⁽³⁾ Uniontown, PA	100%	2003	1972/1990	17	Bon-Ton JC Penney Roomful Express Furn. Sears Teletech Customer Care Value City	1/31/11 10/31/10 3/26/10 2/25/13 6/30/08 7/31/07
Valley Mall Hagerstown, MD	100%	2003	1974/1999	8	Bon-Ton JC Penney Macy’s Sears	1/31/14 10/3/09 (2) (2)
Valley View Mall La Crosse, WI	100%	2003	1980/2001	6	Herberger’s JC Penney Macy’s Sears	(2) 7/31/10 (2) (2)
Viewmont Mall Scranton, PA	100%	2003	1968/2006	1	JC Penney Macy’s Sears	10/31/10 (2) 12/31/10
Voorhees Town Center ⁽³⁾ Voorhees, NJ	100%	2003	1970/2007	0	Boscov’s Macy’s	(2) (2)
Washington Crown Center Washington, PA	100%	2003	1969/1999	8	Bon-Ton Gander Mountain Sports Macy’s Sears	1/31/10 7/24/13 (2) 8/17/09
Willow Grove Park Willow Grove, PA	100%	2000/2003	1982/2001	6	Bloomingdale’s Macy’s Sears	(2) 1/31/22 (2)
Wiregrass Commons ⁽³⁾ Dothan, AL	100%	2003	1986/1999	8	Dillard’s JC Penney McRae’s Parisian	(2) (2) (2) (2)
Woodland Mall Grand Rapids, MI	100%	2005	1968/1998	9	JC Penney Kohl’s Macy’s Sears	(2) 1/31/19 (2) (2)
Wyoming Valley Mall Wilkes-Barre, PA	100%	2003	1974/2006	1	Bon-Ton JC Penney Macy’s Sears	1/31/12 4/30/12 1/31/12 8/1/11

Page 21

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2007 (continued)


Properties ⁽¹⁾	Ownership Interest	Date Acquired	Year Built/Last Renovated	Years Since Renovation	Anchors / Major Tenants	Lease Expiration
POWER CENTERS
Christiana Center Newark, DE	100%	1998	1998	9	Costco Dick’s Sporting Goods	9/30/18 11/30/13
Creekview Warrington, PA	100%	1999	2001	6	Genuardi’s Lowe’s Target	12/31/21 (2) (2)
Metroplex Shopping Center ⁽⁴⁾ Plymouth Meeting, PA	50%	1999	2001	6	Giant Food Store Lowe’s Target	2/28/21 (2) (2)
New River Valley Center Christiansburg, VA	100%	2005	2007	0	Bed, Bath & Beyond Best Buy Staples	1/31/18 1/31/17 11/30/17
Northeast Tower Center Philadelphia, PA	100%	1998	1997	10	Home Depot Raymour & Flanigan Wal-Mart	(2) (2) 1/31/14
The Court at Oxford Valley ⁽⁴⁾ Langhorne, PA	50%	1997	1996	11	Best Buy BJ’s Dick’s Sporting Goods Home Depot Linens ‘n Things	12/31/11 (2) 4/30/11 (2) 2/28/17
Paxton Towne Centre Harrisburg, PA	100%	1999	2001	6	Costco Kohl’s Target Weis Markets	(2) 1/25/21 (2) 11/30/20
Red Rose Commons ⁽⁴⁾ Lancaster, PA	50%	1998	1998	9	Home Depot Weis Markets	(2) (2)
Sunrise Plaza Lacey Township, NJ	100%	2005	2007	0	Home Depot	1/31/38
Whitehall Mall ⁽⁴⁾ Allentown, PA	50%	1964	1964/1998	9	Bed, Bath & Beyond Kohl’s Sears	1/31/10 3/9/17 9/18/11
STRIP CENTERS
Crest Plaza Allentown, PA	100%	1964	1959/2003	4	Target Weis Market	(2) 10/31/14
The Commons at Magnolia Florence, SC	100%	1999	1991/2002	5	Bed, Bath & Beyond Goody’s Target	1/31/13 5/31/12 (2)
Springfield Park Springfield, PA	50%	1997/1998	1997/1998	9	Bed, Bath & Beyond LA Fitness Target	1/31/09 3/31/17 (2)

⁽¹⁾	Does not include 108,100 sf anchor pad leased to Bon-Ton at the Westgate Shopping Center in Bethlehem, PA, with an expiration date of 11/23/2010.

⁽²⁾	Space is not owned by PREIT.

⁽³⁾	Properties are subject to a ground lease.

⁽⁴⁾	Property is managed by a third party.

Page 22

Pennsylvania Real Estate Investment Trust

Balance Sheet

Proportionate Consolidation Method⁽¹⁾

(in thousands, except per share amounts)


	December 31, 2007											December 31, 2006
	GAAP			Share of Unconsolidated Partnerships			Assets Held for Sale		Total			GAAP			Share of Unconsolidated Partnerships			Assets Held for Sale			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,074,562		$	203,671		$	—	$	3,278,233		$	2,909,862		$	183,552		$	—		$	3,093,414
Construction in progress		287,116			1,834			—		288,950			216,892			3,670			—			220,562
Land held for development		5,616			172			—		5,788			5,616			166			—			5,782
Other properties		—			—			—		—			—			—			1,339			1,339

TOTAL INVESTMENTS IN REAL ESTATE		3,367,294			205,677			—		3,572,971			3,132,370			187,388			1,339			3,321,097
Accumulated depreciation		(401,502	)		(45,458	)				(446,960	)		(306,893	)		(39,188	)		—			(346,081	)

Net investments in real estate		2,965,792			160,219			—		3,126,011			2,825,477			148,200			1,339			2,975,016

Investments in partnerships, at equity		36,424			(36,424	)				—			38,621			(38,621	)		—			—
Other assets:
Cash and cash equivalents		27,925			5,302			—		33,227			15,808			2,919			—			18,727
Rents and other receivables ⁽²⁾		49,094			9,755			—		58,849			46,065			9,861			—			55,926
Assets held for sale		—			—			—		—			1,401			—			(1,339	)		62
Intangible assets, net		104,136			873			—		105,009			139,117			1,191			—			140,308
Deferred costs and other assets, net		80,703			8,452			—		89,155			79,120			8,733			—			87,853

TOTAL OTHER ASSETS		298,282			(12,042	)		—		286,240			320,132			(15,917	)		(1,339	)		302,876
TOTAL ASSETS	$	3,264,074		$	148,177		$	—	$	3,412,251		$	3,145,609		$	132,283		$	—		$	3,277,892

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	1,643,122		$	188,089		$	—	$	1,831,211		$	1,572,908		$	189,940		$	—		$	1,762,848
Debt premium on mortgage notes payable		13,820			—			—		13,820			26,663			—			—			26,663
Exchangeable notes		287,500			—			—		287,500			—			—			—			—
Credit Facility		330,000			—			—		330,000			332,000			—			—			332,000
Notes payable		—			—			—		—			1,148			—			—			1,148
Distributions in excess of partnership investments		49,166			(49,166	)		—		—			63,439			(63,439	)		—			—
Liabilities related to assets held for sale		—			—			—		—			34			—			—			34
Other liabilities		127,591			9,254			—		136,845			105,754			5,782			—			111,536

TOTAL LIABILITIES		2,451,199			148,177			—		2,599,376			2,101,946			132,283			—			2,234,229

MINORITY INTEREST		55,256			—			—		55,256			114,363			—			—			114,363

Shareholders’ equity:
Shares of beneficial interest at $1 par		39,134			—			—		39,134			36,947			—			—			36,947
Preferred shares at $0.01 par		—			—			—		—			25			—			—			25
Capital contributed in excess of par		818,966			—			—		818,966			917,322			—			—			917,322
Accumulated other comprehensive income (loss)		(6,968	)		—			—		(6,968	)		7,893			—			—			7,893
Distributions in excess of net income		(93,513	)		—			—		(93,513	)		(32,887	)		—			—			(32,887	)

TOTAL SHAREHOLDERS’ EQUITY		757,619			—			—		757,619			929,300			—			—			929,300

TOTAL LIABILITIES’ MINORITY INTERESTS AND SHAREHOLDERS' EQUITY	$	3,264,074		$	148,177		$	—	$	3,412,251		$	3,145,609		$	132,283		$	—		$	3,277,892

⁽¹⁾

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

⁽²⁾	Total includes straight line rent of $25.1 million ($21.8 million wholly owned, $3.3 million partnership) and $22.6 million ($19.4 million wholly owned, $3.2 million partnership) for December 31, 2007 and December 31, 2006, respectively.

Page 23

Pennsylvania Real Estate Investment Trust

Balance Sheet

Property Type ⁽¹⁾

(in thousands, except per share amounts)


	December 31, 2007												December 31, 2006
	Malls			Power and Strip Centers			Corporate and Other Properties			Total			Malls			Power and Strip Centers			Corporate and Other Properties			Total
ASSETS
Investments in real estate:
Investments in real estate, at cost	$	2,943,305		$	318,541		$	22,175		$	3,284,021		$	2,808,939		$	278,202		$	13,394		$	3,100,535
Construction in progress		176,607			18,718			93,625			288,950			117,871			(8	)		102,699			220,562
Accumulated depreciation		(379,637	)		(66,210	)		(1,113	)		(446,960	)		(288,069	)		(57,323	)		(689	)		(346,081	)

Net investments in real estate		2,740,275			271,049			114,687			3,126,011			2,638,741			220,871			115,404			2,975,016

Other assets:
Cash		19,076			1,723			12,428			33,227			13,362			1,514			3,851			18,727
Rents and other receivables ⁽²⁾		42,095			12,370			4,384			58,849			38,379			13,074			4,473			55,926
Assets held for sale		—			—			—			—			—			52			10			62
Intangible assets, net		93,204			—			11,805			105,009			128,503			—			11,805			140,308
Deferred costs and other assets, net		49,889			9,847			29,419			89,155			46,424			10,129			31,300			87,853

Total other assets		204,264			23,940			58,036			286,240			226,668			24,769			51,439			302,876
TOTAL ASSETS	$	2,944,539		$	294,989		$	172,723		$	3,412,251		$	2,865,409		$	245,640		$	166,843		$	3,277,892

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	1,741,022		$	90,189		$	—		$	1,831,211		$	1,670,436		$	92,412		$	—		$	1,762,848
Debt premium on mortgage notes payable		13,561			259			—			13,820			26,052			611			—			26,663
Exchangeable notes		—			—			287,500			287,500			—			—			—			—
Credit Facility		—			—			330,000			330,000			—			—			332,000			332,000
Notes payable		—			—			—			—			1,148			—			—			1,148
Liabilities related to assets held for sale		—			—			—			—			—			15			19			34
Other liabilities		63,998			1,693			71,154			136,845			56,468			2,962			52,106			111,536

TOTAL LIABILITIES		1,818,581			92,141			688,654			2,599,376			1,754,104			96,000			384,125			2,234,229

MINORITY INTEREST		—			—			55,256			55,256			—			—			114,363			114,363

Shareholders’ equity:
Shares of beneficial interest at $1 par		—			—			39,134			39,134			—			—			36,947			36,947
Preferred shares at $0.01 par		—			—			—			—			—			—			25			25
Capital contributed in excess of par		—			—			818,966			818,966			—			—			917,322			917,322
Accumulated other comprehensive income (loss)		—			—			(6,968	)		(6,968	)		—			—			7,893			7,893
Distributions in excess of net income		—			—			(93,513	)		(93,513	)		—			—			(32,887	)		(32,887	)
Net investment		1,125,958			202,848			(1,328,806	)		—			1,111,305			149,640			(1,260,945	)		—

TOTAL SHAREHOLDERS’ EQUITY		1,125,958			202,848			(571,187	)		757,619			1,111,305			149,640			(331,645	)		929,300

TOTAL LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS’ EQUITY	$	2,944,539		$	294,989		$	172,723		$	3,412,251		$	2,865,409		$	245,640		$	166,843		$	3,277,892

⁽¹⁾

⁽²⁾	Total includes straight line rent of $25.1 million ($21.8 million wholly owned, $3.3 million partnership) and $22.6 million ($19.4 million wholly owned, $3.2 million partnership) for December 31, 2007 and December 31, 2006, respectively.

Page 24

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾

(in thousands)


	December 31, 2007								December 31, 2006
	Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Malls
Beaver Valley Mall	$	66,992	$	30	$	10,482	$	56,540	$	58,490	$	1,024	$	7,745	$	51,769
Capital City Mall		94,265		384		11,100		83,549		91,929		203		7,703		84,429
Chambersburg Mall		36,356		—		4,260		32,096		36,269		—		3,166		33,103
Cherry Hill Mall		233,449		33,621		25,144		241,926		210,153		21,319		19,115		212,357
Crossroads Mall		34,094		—		4,754		29,340		33,441		—		3,500		29,941
Cumberland Mall		58,385		—		3,871		54,514		56,338		1,072		2,409		55,001
Dartmouth Mall		61,088		—		19,178		41,910		60,692		70		16,487		44,275
Exton Square Mall		146,247		—		16,256		129,991		145,590		27		12,930		132,687
Francis Scott Key Mall		70,056		—		8,038		62,018		67,712		240		5,583		62,369
Gadsden Mall		52,262		1,522		3,667		50,117		51,636		—		2,349		49,287
The Gallery at Market East		80,273		30,210		9,002		101,481		78,426		26,243		6,768		97,901
Jacksonville Mall		68,594		3,255		8,193		63,656		68,123		77		6,128		62,072
Logan Valley Mall		93,781		—		12,802		80,979		93,042		—		9,560		83,482
Lycoming Mall		72,843		357		7,555		65,645		70,370		1,511		5,022		66,859
Magnolia Mall		82,063		3,036		15,338		69,761		67,429		4,684		12,705		59,408
Moorestown Mall		80,669		3,637		13,805		70,501		77,025		217		10,873		66,369
New River Valley Mall		56,562		123		5,499		51,186		40,918		9,064		2,979		47,003
Nittany Mall		41,964		—		5,073		36,891		41,708		—		3,735		37,973
North Hanover Mall		37,075		15,758		4,017		48,816		30,049		445		2,782		27,712
Orlando Fashion Square		113,134		154		9,412		103,876		112,113		204		6,232		106,085
Palmer Park Mall		34,484		—		9,606		24,878		33,847		—		8,616		25,231
Patrick Henry Mall		138,263		—		16,143		122,120		136,694		207		10,876		126,025
Phillipsburg Mall		52,304		21		5,822		46,503		50,900		430		4,296		47,034
Plymouth Meeting Mall		64,699		38,473		10,894		92,278		62,978		21,851		8,555		76,274
The Mall at Prince Georges		99,641		—		22,192		77,449		97,788		679		18,649		79,818
Schuylkill Mall		—		—		—		—		8,411		—		1,062		7,349
South Mall		28,905		—		3,268		25,637		28,589		15		2,418		26,186
Uniontown Mall		36,782		—		5,275		31,507		36,337		—		3,904		32,433
Valley Mall		89,003		995		11,786		78,212		86,977		268		8,792		78,453
Valley View Mall		66,570		—		7,073		59,497		65,884		28		5,177		60,735
Viewmont Mall		85,520		36		8,519		77,037		81,753		264		6,024		75,993
Voorhees Town Center		24,104		18,659		3,407		39,356		16,634		5,746		4,149		18,231
Washington Crown Center		40,183		—		7,536		32,647		41,581		—		5,843		35,738
Westgate Anchor Pad		3,450		—		—		3,450		3,450		—		—		3,450
Willow Grove Park		186,092		25,204		27,888		183,408		177,536		18,664		22,357		173,843
Wiregrass Commons		37,031		234		4,357		32,908		38,255		42		3,271		35,026
Woodland Mall		179,785		45		11,398		168,432		178,296		—		5,660		172,636
Wyoming Valley Mall		102,861		420		10,628		92,653		98,700		577		7,325		91,952

Total Consolidated Malls		2,849,829		176,174		363,238		2,662,765		2,736,063		115,171		274,745		2,576,489
Unconsolidated Malls
Lehigh Valley Mall		39,011		143		11,841		27,313		18,741		2,610		10,824		10,527
Springfield Mall		54,465		290		4,558		50,197		54,135		90		2,500		51,725

Total Unconsolidated Malls		93,476		433		16,399		77,510		72,876		2,700		13,324		62,252

TOTAL MALLS	$	2,943,305	$	176,607	$	379,637	$	2,740,275	$	2,808,939	$	117,871	$	288,069	$	2,638,741

⁽¹⁾

Page 25

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾(continued)

(in thousands)


	December 31, 2007								December 31, 2006
	Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Property and Land Held for Development		Construction in Progress			Accumulated Depreciation		Net Real Estate
Consolidated Power Centers/Strips
Christiana Center	$	40,935	$	—	$	8,796	$	32,139	$	40,935	$	—		$	7,656	$	33,279
Creekview		19,098		—		5,605		13,493		19,098		—			4,689		14,409
Crest Plaza		16,432		—		3,801		12,631		16,238		(9	)		3,139		13,090
The Commons at Magnolia		10,119		—		2,526		7,593		9,724		—			2,131		7,593
New River Valley Center		21,378		4,816		164		26,030		—		—			—		—
Northeast Tower Center		33,630		—		5,804		27,826		33,748		—			5,119		28,629
Paxton Towne Centre		54,056		9		11,062		43,003		54,056		1			9,414		44,643
Sunrise Plaza		18,519		13,893		199		32,213		—		—			—		—

Total Consolidated Power Centers/Strips		214,167		18,718		37,957		194,928		173,799		(8	)		32,148		141,643
Unconsolidated Power Centers/Strips
Metroplex Shopping Center		42,025		—		10,656		31,369		42,024		—			9,113		32,911
The Court at Oxford Valley		27,847		—		6,757		21,090		27,735		—			6,151		21,584
Red Rose Commons		11,753		—		2,613		9,140		11,934		—			2,290		9,644
Whitehall Mall		15,689		—		7,166		8,523		15,664		—			6,684		8,980
Springfield Park		7,060		—		1,061		5,999		7,046		—			937		6,109

Total Unconsolidated Power Centers/Strips		104,374		—		28,253		76,121		104,403		—			25,175		79,228

TOTAL POWERS AND STRIP CENTERS	$	318,541	$	18,718	$	66,210	$	271,049	$	278,202	$	(8	)	$	57,323	$	220,871

Development Properties
The Plaza at Magnolia	$	—	$	523	$	—	$	523	$	—	$	6,885		$	—	$	6,885
Monroe Marketplace		—		23,559		—		23,559		—		6,313			—		6,313
New Garden Town Center		—		38,764		—		38,764		—		34,793			—		34,793
Springhills		—		29,378		—		29,378		—		26,086			—		26,086
Total Development Properties		—		92,224		—		92,224		—		74,077			—		74,077

Unconsolidated Development Properties
Pavilion at Market East		5,821		1,401		806		6,416		6,273		970			689		6,554

Total Unconsolidated Development Properties		5,821		1,401		806		6,416		6,273		970			689		6,554
Other Properties
P&S Building		1,339		—		307		1,032		1,339		—			—		1,339
Plymouth Commons		9,227		—		—		9,227		—		—			—		—
Land held for development - consolidated		5,616		—		—		5,616		5,616		—			—		5,616
Land held for development - unconsolidated		172		—		—		172		166		—			—		166

Total Other Properties	$	16,354	$	—	$	307	$	16,047	$	7,121	$	—		$	—	$	7,121

TOTAL INVESTMENT IN REAL ESTATE	$	3,284,021	$	288,950	$	446,960	$	3,126,011	$	3,100,535	$	192,910		$	346,081	$	2,947,364

CONSOLIDATED PROPERTIES	$	3,080,178	$	287,116	$	401,502	$	2,965,792	$	2,916,817	$	189,240		$	306,893	$	2,799,164
UNCONSOLIDATED PROPERTIES		203,843		1,834		45,458		160,219		183,718		3,670			39,188		148,200

TOTAL INVESTMENT IN REAL ESTATE	$	3,284,021	$	288,950	$	446,960	$	3,126,011	$	3,100,535	$	192,910		$	346,081	$	2,947,364

⁽¹⁾

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Pennsylvania Real Estate Investment Trust

Property Redevelopment and Repositioning Summary as of December 31, 2007


NAME OF PROJECT LOCATION	PREIT’s PROJECTED SHARE OF COST (in millions)	PREIT’S INVESTMENT (in millions)	RETURN ON INCREMENTAL INVESTMENT		CONSTRUCTION START DATE	EXPECTED CONSTRUCTION COMPLETION
ENCLOSED MALL
Lehigh Valley Mall Allentown, PA	$22.2	$19.5	8.4	%	2006	2007
• Opening 140,000 sf Lifestyle component, including a 30,000 sf Barnes & Noble, shops and restaurants; • Demolished 10,000 sf outparcel as part of this project; • Approximately 110,000 sf opened in 2007 and the remaining 30,000 sf to open in 2008. Ann Taylor, Ann Taylor Loft, Apple, Barnes & Noble, Bonefish Grill, Bravo, Chico's, Coach, Coldstone Creamery, Coldwater Creek, J. Crew, Pottery Barn, Sephora, Soma, White House/Black Market, Williams-Sonoma and Yankee Candle opened in 2007. • Net increase in property GLA is approximately 130,000 sf.
Jacksonville Mall Jacksonville, NC	8.3	3.5	8.0	%	2007	2008
• Opening 28,000 sf Barnes & Noble (13,000 sf of new GLA). • Phase I of the project will be completed in May 2008 with the opening of Barnes & Noble.
Moorestown Mall Moorestown, NJ	13.7	5.9	8.2	%	2007	2008
• Opened 16,000 sf Lane Furniture in September 2007 (8,000 sf of new GLA); • Opening 15,000 sf Eastern Mountain Sports (4,000 sf of new GLA); • Opening 6,000 sf of outparcel restaurants; • Creating 3 spaces with exterior frontage in approximately 6,000 sf of unleasable space (new GLA); -Updating the entrances and facades; • Net increase in property GLA will be approximately 24,000 sf.
Willow Grove Park Willow Grove, PA	39.1	32.2	6.5	%	2007	2008
• Opening 194,000 sf Boscov’s and 22,000 sf of restaurants in the former 229,000 sf Strawbridge's. Included in the 22,000 sf of restaurants is a 10,000 sf The Cheesecake Factory that opened during September 2007; • Net reduction in property GLA will be approximately 13,000 sf.
North Hanover Mall Hanover, PA	35.1	22.4	7.8	%	2007	2009
• Opening 172,000 sf Boscov’s in the former 70,000 sf Bon-Ton anchor and absorbing 12,000 sf of existing in-line space (90,000 sf of new GLA); • Opened 50,000 sf Dick’s Sporting Goods in October 2007 in the former 63,000 sf Black Rose Antiques location (net decrease in GLA of 13,000 sf); • Relocated and downsized Black Rose Antiques to 15,000 sf of previously vacant space in adjacent strip center; • Net increase in property GLA will be approximately 77,000 sf.
Plymouth Meeting Mall Plymouth Meeting, PA	83.9	39.8	8.6	%	2007	2009
• Opening 65,000 sf Whole Foods Market; • Opening four restaurant outparcels (Benihana, California Pizza Kitchen, P.F. Chang's China Bistro and Redstone American Grill), totaling 34,000 sf; • Opening 39,000 sf of retail space; -Opening 4,000 sf Citibank outparcel; • Net increase in property GLA will be approximately 142,000 sf.
Cherry Hill Mall Cherry Hill, NJ	197.7	56.7	7.1	%	2007	2009
• Opening a two-level, 138,000 sf Nordstrom (anticipated spring of 2009); • Opening 88,000 sf of new in-line retail space in the former food court and Strawbridge’s area; • Opening 72,000 sf from a combination of a Bistro Row and parking deck restaurants; • Opened Crate & Barrel and The Container Store in November 2007 on two outparcels totaling 59,000 sf; • Net increase in total property GLA will be approximately 95,000 sf.
MIXED USE
Voorhees Town Center Voorhees, NJ	79.3	27.6	9.2	%	2007	2009
• Phase I - Reduced mall GLA by 470,000 sf to 654,000 sf and opening 26,000 sf of outparcel space; • Phase II - Opening a mixed use town center of approximately 200,000 sf; • Phase III - Opening 425 residential units which are expected to be constructed by our ground lessee and its affiliates; • Net reduction in property GLA will be approximately 244,000 sf.

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Pennsylvania Real Estate Investment Trust

Development Property Summary as of December 31, 2007


NAME OF PROJECT LOCATION	TOTAL PROJECTED PROPERTY GLA (sq ft) ⁽¹⁾	PREIT’s PROJECTED SHARE OF COST (in millions)	PREIT’s INVESTMENT (in millions)	EXPECTED STABILIZED NOI CAP	CONSTRUCTION START DATE	EXPECTED DATE OF COMPLETION	% LEASED	% OCCUPIED
OPERATING PROPERTIES WITH DEVELOPMENT ACTIVITY
POWER CENTERS
New River Valley Center ⁽²⁾ Christiansburg, VA	164,000	$29.2	$26.5	8.1%	2006	2008	100%	77%
The power center adjacent to the existing New River Valley Mall is near completion. Shoe Carnival, Best Buy, Bed Bath & Beyond, PetSmart, Old Navy, Staples, Panera Bread and Banfield, The Pet Hospital opened in 2007. Ross and Olive Garden are expected to open during the first quarter of 2008.
Sunrise Plaza ⁽²⁾ Forked River, NJ	276,000	39.1	32.5	6.2%	2006	2009	58%	48%
A retail shopping center anchored by a 133,000 square foot Home Depot that opened in October 2007. The balance of the center is comprised of in-line stores and outparcels, including a 20,000 square foot Staples.
DEVELOPMENT PROPERTIES
POWER CENTERS
Monroe Marketplace Selinsgrove, PA	662,000	80.9	23.6	8.1%	2007	2008	48%	0%
A 662,000 square foot power center will be developed, including Target, Giant Food Store, Dick’s Sporting Goods, Michael’s, and Staples.
MIXED USE
New Garden Town Center New Garden Township, PA	715,000	82.1	38.8	9.4%	2008	2009	0%	0%
The planned development includes retail and other uses.
Springhills Gainesville, FL	TBD	TBD	29.4	TBD	TBD	TBD	0%	0%
540 acres of land were acquired in 2006. Site development is subject of litigation commenced by the Company in June 2007 following action by the Alachua County Board of Supervisors refusing to authorize the Company's development plans.
OTHER
Pavilion at Market East Philadelphia, PA	TBD	TBD	1.4	TBD	TBD	TBD	N/A	0%
The Partnership’s development plans for the Pavilion at Market East are under review. The Company retains a 40% interest in the partnership.

⁽¹⁾	Includes tenants that purchased their respective land.

⁽²⁾	Sunrise Plaza and New River Valley Center are considered operating properties, and are not counted as development properties.

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Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)


	Three months ended December 31, 2007						Twelve months ended December 31, 2007
	Consolidated		Unconsolidated		Total		Consolidated		Unconsolidated		Total
Redevelopment projects with incremental	$	50,877	$	4,892	$	55,769	$	155,257	$	17,688	$	172,945
GLA and/or anchor replacement
New development projects		7,536		—		7,536		58,271		41		58,312
Renovation with no incremental GLA		—		—		—		3,465		—		3,465
Tenant allowances		4,511		—		4,511		14,249		45		14,294
Recurring capital expenditures:
CAM expenditures		6,256		337		6,593		12,848		537		13,385
Non-CAM expenditures		1,354		—		1,354		4,010		184		4,194

Total recurring capital expenditures		7,610		337		7,947		16,858		721		17,579

Total	$	70,534	$	5,229	$	75,763	$	248,100	$	18,495	$	266,595

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Pennsylvania Real Estate Investment Trust

Debt Analysis as of December 31, 2007

(in thousands)

Outstanding Debt ⁽¹⁾


	Fixed Rate			% of Total Indebtedness		Floating Rate			% of Total Indebtedness		Total			% of Total Indebtedness
Consolidated Mortgage Notes Payable	$	1,656,942		67.3	%	$	—		0.0	%	$	1,656,942		67.3	%
Unconsolidated Mortgage Notes Payable		70,558		2.9	%		117,531		4.8	%		188,089		7.6	%
Exchangeable Notes		287,500		11.7	%		—		0.0	%		287,500		11.7	%
Credit Facility		—		0.0	%		330,000		13.4	%		330,000		13.4	%

TOTAL OUTSTANDING DEBT	$	2,015,000		81.8	%	$	447,531		18.2	%	$	2,462,531		100.0	%

AVERAGE INTEREST RATE		5.94	%				6.16	%				5.98	%

⁽¹⁾Includes debt premium

Average Debt Balance


		Mortgage Debt ⁽¹⁾			REMIC ^(1) (2)			Total Mortgages			Credit Facility		Exchangeable Notes		Corporate Notes Payable			TOTAL
Beginning Balance	9/30/2007	$	1,435,153		$	419,637		$	1,854,790		$	245,000	$	287,500	$	1,148		$	2,388,438
Credit Facility Borrowing, net			—			—			—			85,000		—		—			85,000
Corporate Note Repayment			—			—			—			—		—		(1,148	)		(1,148	)
Debt Amortization ⁽³⁾			(4,886	)		(4,873	)		(9,759	)		—		—		—			(9,759	)

Ending Balance	12/31/2007	$	1,430,267		$	414,764		$	1,845,031		$	330,000	$	287,500	$	—		$	2,462,531

Weighted Average Balance		$	1,433,537		$	418,015		$	1,851,552		$	271,457	$	287,500	$	1,148		$	2,411,657

⁽¹⁾	Includes debt premium.

⁽²⁾

The REMIC is a first mortgage loan with an interest rate of 7.43% that is secured by 15 cross-collateralized properties and is pre-payable without penalty in July 2008. If the Company does not pay off the loan by the anticipated prepayment date in September 2008, the financing will remain in place at an adjusted interest rate. The loan will then be pre-payable without penalty on any payment date up to its final maturity date in September 2025.

⁽³⁾	Includes the amortization of debt premium and balloon payments.

Debt Maturities ⁽¹⁾


Year	Scheduled Amortization		Debt Premium Amortization		Mortgage Balance at Maturity		Credit Facility		Exchangeable Notes		Total Debt
2008	$	24,277	$	9,794	$	624,943	$	—	$	—	$	659,014
2009		16,164		1,283		62,435		330,000		—		409,882
2010		17,178		1,175		1,412		—		—		19,765
2011		17,587		1,152		44,788		—		—		63,527
2012		14,773		416		310,342		—		287,500		613,031
2013		9,863		—		110,458		—		—		120,321
2014		9,135		—		—		—		—		9,135
Thereafter		10,024		—		557,832		—		—		567,856

	$	119,001	$	13,820	$	1,712,210	$	330,000	$	287,500	$	2,462,531

⁽¹⁾	The weighted average period to mortgage maturity is 4.42 years. Excludes debt premium.

Interest Rate Hedging Instruments


Type	Notional Amount		Blended Rate		Latest Settlement Date
10 Year Forward Starting Swaps	$	250,000	4.80	%	12/10/2008
10 Year Forward Starting Swaps	$	150,000	5.36	%	12/10/2008

	$	400,000	5.01	%

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Pennsylvania Real Estate Investment Trust

Debt Schedule as of December 31, 2007

(in thousands)


	Proportionate Share⁽¹⁾						Stated Interest Rate		Marked to Market Interest Rate (GAAP)		Annual Debt Service
	Mortgage Debt		Debt Premium		Total		Stated Interest Rate		Marked to Market Interest Rate (GAAP)		Annual Debt Service		Balance at Maturity		Maturity Date
Fixed Rate Mortgage Debt
REMIC Properties
Chambersburg Mall	$	17,543	$	296	$	17,839	7.43	%	4.99	%	$	1,763	$	17,200	2008
Francis Scott Key Mall		30,701		517		31,218	7.43	%	4.99	%		3,085		30,099	2008
Jacksonville Mall		23,684		399		24,083	7.43	%	4.99	%		2,380		23,219	2008
Logan Valley Mall		49,999		845		50,844	7.43	%	4.99	%		5,024		49,018	2008
Lycoming Mall		30,701		517		31,218	7.43	%	4.99	%		3,084		30,099	2008
New River Valley Mall		14,912		251		15,163	7.43	%	4.99	%		1,498		14,619	2008
Nittany Mall		26,315		443		26,758	7.43	%	4.99	%		2,644		25,799	2008
North Hanover Mall		17,544		296		17,840	7.43	%	4.99	%		1,763		17,199	2008
Northeast Tower Center		15,351		259		15,610	7.43	%	4.99	%		1,542		15,049	2008
Patrick Henry Mall		44,297		749		45,046	7.43	%	4.99	%		4,451		43,428	2008
Phillipsburg Mall		26,315		444		26,759	7.43	%	4.99	%		2,644		25,799	2008
South Mall		13,158		222		13,380	7.43	%	4.99	%		1,322		12,899	2008
Uniontown Mall		21,052		355		21,407	7.43	%	4.99	%		2,115		20,639	2008
Viewmont Mall		26,315		443		26,758	7.43	%	4.99	%		2,644		25,799	2008
Wyoming Valley Mall		49,999		843		50,842	7.43	%	4.99	%		5,024		49,018	2008

Subtotal REMIC		407,886		6,879		414,765	7.43	%	4.99	%		40,983		399,883	2008
Crossroads Mall		12,767		96		12,863	7.39	%	5.75	%		1,191		12,647	2008
Exton Square Mall		94,355		1,478		95,833	6.95	%	5.00	%		8,102		93,034	2008
Whitehall Mall		6,332		—		6,332	6.77	%	6.77	%		641		6,129	2008
Palmer Park Mall		16,206		—		16,206	6.77	%	6.77	%		1,661		15,674	2009
Red Rose Commons		12,833		—		12,833	7.66	%	7.66	%		1,220		12,425	2009
Valley View Mall		35,330		207		35,537	6.15	%	5.75	%		2,773		34,335	2009
Springfield Park		1,575		—		1,575	7.79	%	7.79	%		203		1,412	2010
Metroplex Shopping Center		30,662		—		30,662	7.25	%	7.25	%		2,681		28,785	2011
The Court at Oxford Valley		19,156		—		19,156	8.02	%	8.02	%		2,319		16,003	2011
Beaver Valley Mall		45,277		—		45,277	7.36	%	7.36	%		3,972		42,266	2012
Capital City Mall		51,002		3,482		54,484	7.61	%	5.50	%		4,603		47,898	2012
Cherry Hill Mall		193,886		—		193,886	5.42	%	5.42	%		13,510		177,689	2012
Cumberland Mall Loan #1		42,263		1,678		43,941	6.50	%	5.40	%		3,413		38,782	2012
Dartmouth Mall		65,128		—		65,128	4.95	%	4.95	%		4,484		57,594	2013
Moorestown Mall		59,779		—		59,779	4.95	%	4.95	%		4,115		52,863	2013
Magnolia Mall		63,831		—		63,831	5.33	%	5.33	%		4,413		54,965	2015
Willow Grove Park		155,685		—		155,685	5.65	%	5.65	%		11,083		133,548	2015
Valley Mall		90,000		—		90,000	5.49	%	5.49	%		5,014		78,835	2016
Woodland Mall		156,500		—		156,500	5.58	%	5.58	%		8,397		140,484	2016
Cumberland Mall Loan #2		3,227		—		3,227	5.00	%	5.00	%		206		—	2017
The Mall at Prince Georges		150,000		—		150,000	5.51	%	5.51	%		8,270		150,000	2017

Total Fixed Rate Mortgage Debt		1,713,680		13,820		1,727,500	6.26	%	5.46	%		174,237		1,995,134

Variable Rate Mortgage Debt
Lehigh Valley Mall		75,000		—		75,000	5.59	%	5.59	%		4,314		75,000	2008
Springfield Mall		38,250		—		38,250	5.95	%	5.95	%		2,380		38,250	2008
Pavilion East Associates		4,281		—		4,281	7.98	%	7.71	%		366		3,708	2012

Total Variable Rate Mortgage Debt		117,531		—		117,531	5.79	%	5.78	%		7,060		116,958

Total Mortgage Debt	$	1,831,211	$	13,820	$	1,845,031	6.23	%	5.48	%	$	181,297	$	2,112,092

CONSOLIDATED MORTGAGES	$	1,643,122	$	13,820	$	1,656,942	6.21	%	5.38	%	$	126,190	$	1,530,497
UNCONSOLIDATED MORTGAGES		188,089		—		188,089	6.43	%	6.43	%		14,124		181,712
EXCHANGEABLE NOTES		287,500		—		287,500	4.00	%	4.00	%		11,500		287,500
CREDIT FACILITY		330,000		—		330,000	6.29	%	6.29	%		20,757		—

Total	$	2,448,711	$	13,820	$	2,462,531	5.98	%	5.42	%	$	161,071	$	1,999,709

⁽¹⁾	Includes 100% of debt from consolidated properties and our share of debt from unconsolidated properties, based on our ownership percentage.

Page 31

Pennsylvania Real Estate Investment Trust

Shareholder Information


Ten Largest Institutional Shareholders:	Common Shares Held ⁽¹⁾
Goldman Sachs Asset Management (US)	3,691,967
Vanguard Group, Inc.	2,718,197
Barclays Global Investors, N.A.	2,683,968
ING Clarion Real Estate Securities, L.P.	2,251,353
RREEF Real Estate Securities Advisors, L.P.	1,983,605
Perkins, Wolf, McDonnell & Company, LLC	1,481,880
State Street Global Advisors (US)	1,292,123
ABN Amro Asset Management, Inc	768,800
J.P. Morgan Investment Management Inc. (New York)	607,869
Neuberger Berman, LLC	580,749

*TOTAL of Ten Largest Institutional:*	18,060,511
*TOTAL of all Institutional Holders:*	29,753,729
*Ten Largest as % of Total Institutional:*	60.7	%

⁽¹⁾	Based on 13F and 13G filings as of 12/31/2007 or most recent filings.


Breakdown of Share & Unit Ownership: Shares Held	Most Recent	% of Outstanding		December 31, 2006
Institutional ⁽¹⁾	29,753,729	72.0	%	27,237,603
Retail ⁽²⁾	6,629,028	16.0	%	9,195,771
Insiders ⁽³⁾	4,965,503	12.0	%	4,811,556

*TOTAL*	41,348,260	100.0	%	41,244,930

⁽¹⁾	Based on 13F and 13G filings as of 12/31/2007 or most recent filings.

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

⁽³⁾	Insider holdings as of March 31, 2007 (Shares and O.P. Units only). Excludes 330,000 exercisable options. See proxy statement dated April 20, 2007 for more details.

Page 32

Pennsylvania Real Estate Investment Trust

Definitions

Funds From Operations (FFO)

The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations, which is a non-GAAP measure, as income before gains (losses) on sales of operating properties and extraordinary items (computed in accordance with GAAP); plus real estate depreciation; plus or minus adjustments for unconsolidated partnerships to reflect funds from operations on the same basis. We compute Funds From Operations by taking the amount determined pursuant to the NAREIT definition and subtracting dividends on preferred shares (“FFO”). FFO includes the effect of the Company’s redemption of all of its 11% non-convertible Senior Preferred Shares in July 2007.

Funds From Operations 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, less dividends on preferred shares, which may not be comparable to Funds From Operations reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than the Company. FFO does not include gains or losses on sale of operating real estate assets, which are included in the determination of net income in accordance with GAAP. Accordingly, FFO is not a comprehensive measure of our operating cash flows. In addition, since FFO does not include depreciation on real estate assets, FFO may not be a useful performance measure when comparing our operating performance to that of other non-real estate commercial enterprises.

We compensate for these limitations by using FFO in conjunction with other GAAP financial performance measures, such as net income and net cash provided by operating activities, and other non-GAAP financial performance measures, such as net operating income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s financial performance, or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity, nor is it indicative of funds available for the Company’s cash needs, including its ability to make cash distributions.

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

Net Operating Income (NOI)

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, which some companies refer to as Cash Available for Distributions (CAD) or Adjusted FFO (AFFO), is a measure of a real estate company’s cash flows generated by operations and capacity to pay dividends. The Company calculates FAD by starting with FFO and subtracting (1) straight-line rents, (2) normalized recurring capital expenditures that are capitalized but necessary to maintain our properties, (3) operational tenant allowances, (4) capitalized leasing costs, (5) amortization of debt premium, and (6) amortization of above and below market lease intangibles.

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.

Page 33