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) November 3, 2008

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 November 3, 2008, Pennsylvania Real Estate Investment Trust issued a press release reporting its financial results for the third quarter ended September 30, 2008. A copy of the press release 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 Press Release dated November 3, 2008.

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: November 3, 2008	By:	/s/ Bruce Goldman
		Bruce Goldman Executive Vice President and General Counsel

Exhibit Index

99.1 Press release dated November 3, 2008.

- 2 -

EX-99.1

Exhibit 99.1

Pennsylvania Real Estate Investment Trust
200 South Broad Street Philadelphia, PA 19102 www.preit.com Phone:          215-875-0700 Fax:               215-546-7311 Toll Free:     866-875-0700

CONTACT:

Robert McCadden

EVP & CFO

(215) 875-0735

Nurit Yaron

VP, Investor Relations

(215) 875-0735

Pennsylvania Real Estate Investment Trust

Reports Third Quarter 2008 Results

Philadelphia, PA, November 3, 2008 – Pennsylvania Real Estate Investment Trust (NYSE: PEI) today reported results for the quarter and nine months ended September 30, 2008.

Financial Results

• Net loss allocable to common shareholders for the third quarter of 2008 was $(7.6) million, or $(0.20) per diluted share, compared to net income available to common shareholders of $13.7 million, or $0.35 per diluted share, for the third quarter of 2007. Net income in the third quarter of 2007 included $13.3 million recognized in connection with the Company’s redemption of its Preferred Shares in July 2007.

For the nine months ended September 30, 2008, net loss allocable to common shareholders was $(12.7) million, or $(0.35) per diluted share, compared to net income available to common shareholders of $19.9 million, or $0.51 per diluted share, for the nine months ended September 30, 2007.

See below for a description of the primary factors affecting third quarter and nine month results.

• Funds From Operations (“FFO”) for the third quarter of 2008 was $31.8 million, or $0.77 per diluted share, compared to $47.7 million, or $1.16 per diluted share, in the third quarter of 2007. Third quarter 2007 FFO included the $13.3 million, or $0.32 per diluted share, impact of the Company’s redemption of its Preferred Shares.

FFO for the nine months ended September 30, 2008 was $102.3 million, or $2.49 per diluted share, compared to $114.8 million, or $2.79 per diluted share, for the nine months ended September 30, 2007.

• Net Operating Income (“NOI”) from consolidated properties and the Company’s proportionate share of unconsolidated partnership properties was $72.4 million in the third quarter of 2008, compared to $72.3 million in the third quarter of 2007.

For the nine months ended September 30, 2008, NOI was $222.7 million, compared to $218.7 million for the nine months ended September 30, 2007.

A description of each non-GAAP financial measure and the related reconciliation

to the comparable GAAP measure are located at the end of this press release.

PREIT Reports Third Quarter 2008 Results

November 3, 2008

Page 2

Primary Factors Affecting Three Month Financial Results

For the quarter ended September 30, 2008, net loss allocable to common shareholders was affected by higher depreciation and amortization as development and redevelopment assets have been placed in service and by increased interest expense resulting primarily from a higher aggregate debt balance.

For the quarter ended September 30, 2007, net income available to common shareholders and FFO were affected by $13.3 million from the redemption of Preferred Shares and $1.1 million of dividends on the Company’s then-outstanding Preferred Shares.

Primary Factors Affecting Nine Month Financial Results

For the nine months ended September 30, 2008, net loss allocable to common shareholders and FFO were affected by higher depreciation and amortization as development and redevelopment assets have been placed in service, increased interest expense and abandoned project costs, partially offset by $2.0 million of net gains on forward starting swap activities and the applicable hedge accounting treatment. These swaps were entered into by the Company in 2005 and 2006 to hedge interest payments related to anticipated 2008 debt issuances. The gain reduced interest expense.

For the nine months ended September 30, 2007, net income available to common shareholders and FFO benefited from $13.3 million from the redemption of Preferred Shares, a $1.5 million gain on the sale of a non-operating parcel at The Plaza at Magnolia in Florence, South Carolina, $0.8 million of condemnation proceeds associated with highway improvements at Capital City Mall in Harrisburg, Pennsylvania, and was reduced by $7.9 million of dividends on the Company’s then-outstanding Preferred Shares. Net income for the nine months ended September 30, 2007 was also affected by a $6.7 million gain on the sale of Schuylkill Mall in Frackville, Pennsylvania and a $0.6 million gain on the sale of an operating retail parcel at New River Valley Mall in Christiansburg, Virginia.

Financing Activities

During the quarter, the Company has made significant strides in executing its capital plan, including the following:

• Repaid the $400 million 15 property, cross collateralized REMIC. As of September 30, 2008, 24 properties in the Company’s portfolio were unencumbered, including 11 that were previously used to secure the REMIC;

• Paid off the $13 million mortgage on Crossroads Mall;

• Obtained a $170 million senior unsecured term loan;

• Obtained a $97 million non-recourse seven year mortgage loan secured by Patrick Henry Mall, Newport News, Virginia;

• Obtained a $68 million non-recourse five year mortgage loan secured by Logan Valley Mall, Altoona, Pennsylvania;

• Obtained a $65 million non-recourse five year mortgage loan secured by Wyoming Valley Mall, Wilkes-Barre, Pennsylvania;

• Obtained a $60 million non-recourse five year mortgage facility secured by Jacksonville Mall, Jacksonville, North Carolina;

• Obtained a $54 million three year mortgage loan secured by Paxton Towne Centre, Harrisburg, Pennsylvania;

• Extended a $150 million mortgage loan secured by Lehigh Valley Mall, Allentown, Pennsylvania to August 2009. PREIT’s share of this loan is $75 million; and

• Extended the maturity date of its $500 million Credit Facility to March 2010.

PREIT Reports Third Quarter 2008 Results

November 3, 2008

Page 3

Ronald Rubin, Chairman and Chief Executive Officer of the Company, said, “We are very pleased to have completed these financing transactions despite the difficult conditions in the credit markets and the challenging state of the economy. We are continuing our efforts to execute our capital plan to obtain funding for our ongoing development and redevelopment projects.”

Retail Operating Metrics

“The economy is a challenge to us, our tenants and our shoppers. Nonetheless, we are pleased with the noticeable transformation at our properties and the resulting enhancements to the shopping experience,” said Joseph Coradino, President of PREIT Services, LLC and PREIT-RUBIN, Inc. “During the quarter, we opened four anchors totaling over 320,000 square feet and, at Voorhees Town Center, we opened a 50,000 square foot office building. We continue to make progress toward our leasing goals, having signed important leases during the quarter with retailers such as J. Crew, Teavana, Zumiez, aerie, Coach, and American Eagle.”

The following tables set forth information regarding occupancy and sales per square foot in the Company’s retail portfolio:

	Occupancy as of
	September 30, 2008	September 30, 2007
Enclosed malls weighted average: (1)
Total excluding anchors	86.5%	87.4%
Total including anchors (2)	88.8%	90.0%
Retail portfolio weighted average: (1)
Total excluding anchors	87.9%	88.5%
Total including anchors (2)	89.9%	90.8%
Strip/power centers weighted average:	97.1%	96.8%

(1) Includes properties owned by partnerships in which we own a 50% interest.

(2) Includes approximately 0.9 million square feet of vacant anchor space, as of September 30, 2008, of which approximately 0.6 million square feet has been leased but is not occupied. As of September 30, 2007, total vacant anchor space was approximately 1.0 million square feet.

	Twelve Months Ended:
	September 30, 2008		September 30, 2007
Sales per square foot (1)	$	351	$	362

(1) Includes properties in the Company’s portfolio as of the respective dates. Data based on sales reported by tenants leasing 10,000 square feet or less of non-anchor space for at least 24 months.

Same store NOI decreased 1.4% to $71.2 million for the third quarter of 2008, including $0.3 million in lease termination revenue, compared to $72.3 million, including $0.7 million in lease termination revenue, for the third quarter of 2007. For the third quarter of 2008, same store NOI was affected by $2.1 million in bad debt expenses compared to $0.7 million for the third quarter of 2007. Same store NOI for the nine months ended September 30, 2008 increased 0.5% to $219.3 million, including $2.6 million in lease termination revenue, compared to $218.3 million, including $1.4 million in lease termination revenue in the nine months ended September 30, 2007. Bad debt expense for the nine months ended September 30, 2008 was $4.4 million compared to $2.1 million for the nine months ended September 30, 2007. Same store results represent retail properties that the Company owned for the full periods presented.

PREIT Reports Third Quarter 2008 Results

November 3, 2008

Page 4

2008 Outlook

In the face of economic challenges and uncertainties, management is reducing its full-year 2008 estimates of net (loss) income and FFO per diluted share to the following:

Estimates Per Diluted Share

Net (loss) income	$(0.25) – $(0.15)
Depreciation and amortization (includes Company’s proportionate share         of unconsolidated properties), net of minority interest, and other adjustments	$3.75
Funds From Operations	$3.50 – $3.60

Conference Call Information

Management has scheduled a conference call for 3:00 p.m. Eastern Time today to review the Company’s third quarter results, market trends, and future outlook. To listen to the call, please dial (800) 762-8795 (domestic) or (480) 248-5085 (international), at least five minutes before the scheduled start time. Investors can also access the call in a “listen only” mode via the Internet at the Company website, www.preit.com, or at www.viavid.net. Please allow extra time prior to the call to visit the site and download the necessary software to listen to the Internet broadcast. Financial and statistical information expected to be discussed on the call will also be available on the Company’s website.

For interested individuals unable to join the conference call, a replay of the call will be available through November 17, 2008 at (800) 406-7325 (domestic) or (303) 590-3030 (international), (Replay Password: 3932990). The online archive of the webcast will be available for 14 days following the call.

About Pennsylvania Real Estate Investment Trust

Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls and power centers. Currently, the Company’s retail portfolio is approximately 34 million square feet and consists of 56 properties, including 38 shopping malls, 14 strip and power 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. PREIT is headquartered in Philadelphia, Pennsylvania. The Company’s website can be found at www.preit.com. PREIT is publicly traded on the NYSE under the symbol PEI.

Definitions

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. The Company computes Funds From Operations by taking the amount determined pursuant to the NAREIT definition and subtracting dividends on preferred shares (“FFO”)(for periods during which the Company had preferred shares outstanding).

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. Similarly, FFO per diluted share is a measure that is useful because it reflects the dilutive impact of outstanding convertible securities. In addition, we use FFO and FFO per diluted share as a performance measure for determining bonus amounts earned under certain of

PREIT Reports Third Quarter 2008 Results

November 3, 2008

Page 5

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

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

Net operating income (“NOI”), which is a non-GAAP measure, is derived from real estate 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 and gains on sales of interests in real estate.

Forward Looking Statements

This press release 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 credit market conditions, changes in interest rates or the possibility of war or

PREIT Reports Third Quarter 2008 Results

November 3, 2008

Page 6

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. Additionally, there can be no assurance that PREIT’s actual results will not differ significantly from the estimates set forth above, or that PREIT’s returns on its developments, redevelopments or acquisitions will be consistent with the estimates outlined in 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, 2007. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

[Financial Tables Follow]

**        Quarterly supplemental financial and operating    **

**        information will be available on www.preit.com    **

#            #            #

PREIT Reports Third Quarter 2008 Results

November 3, 2008

Page 7

Pennsylvania Real Estate Investment Trust

Selected Financial Data

CONSOLIDATED BALANCE SHEET	September 30, 2008			December 31, 2007
(In thousands, except share and per share amounts)
ASSETS:
INVESTMENTS IN REAL ESTATE, at cost:
Operating properties	$	3,215,570		$	3,074,562
Construction in progress		419,533			287,116
Land held for development		5,616			5,616
Total investments in real estate		3,640,719			3,367,294
Accumulated depreciation		(486,076	)		(401,502	)
Net investments in real estate		3,154,643			2,965,792
INVESTMENTS IN PARTNERSHIPS, at equity:		36,130			36,424
OTHER ASSETS:
Cash and cash equivalents		19,452			27,925
Tenant and other receivables (net of allowance for doubtful accounts of $13,963 and $11,424 at September 30, 2008 and December 31, 2007, respectively)		44,393			49,094
Intangible assets (net of accumulated amortization of $161,863 and
$137,809 at September 30, 2008 and December 31, 2007, respectively)		80,748			104,136
Deferred costs and other assets, net		87,945			80,703
Total assets	$	3,423,311		$	3,264,074
LIABILITIES:
Mortgage notes payable	$	1,680,101		$	1,643,122
Debt premium on mortgage notes payable		4,623			13,820
Senior Exchangeable notes		287,500			287,500
Senior unsecured Credit Facility		380,000			330,000
Senior unsecured term loan		170,000			—
Distributions in excess of partnership investments		45,982			49,166
Tenants' deposits and deferred rents		17,532			16,213
Accrued expenses and other liabilities		105,058			111,378
Total liabilities		2,690,796			2,451,199
MINORITY INTEREST: (Redemption value $42,193 and $66,560 at September 30, 2008 and December 31, 2007, respectively)		54,366			55,256
SHAREHOLDERS' EQUITY:
Shares of beneficial interest, $1.00 par value per share; 100,000,000 shares authorized; issued and outstanding 39,397,000 shares at September 30, 2008 and 39,134,000 shares at December 31, 2007		39,397			39,134
Capital contributed in excess of par		827,037			818,966
Accumulated other comprehensive loss		(14,833	)		(6,968	)
Distributions in excess of net income		(173,452	)		(93,513	)
Total shareholders' equity		678,149			757,619
Total liabilities, minority interest and shareholders' equity	$	3,423,311		$	3,264,074

PREIT Reports Third Quarter 2008 Results

November 3, 2008

Page 8

Pennsylvania Real Estate Investment Trust

Selected Financial Data

	Three Months Ended						Nine Months Ended
FUNDS FROM OPERATIONS	September 30, 2008			September 30, 2007			September 30, 2008			September 30, 2007
(In thousands, except per share amounts)
Net (loss) income	$	(7,631	)	$	1,499		$	(12,657	)	$	14,458
Adjustments:
Minority interest		(349	)		104			(499	)		1,575
Dividends on preferred shares		—			(1,134	)		—			(7,941	)
Redemption of preferred shares		—			13,347			—			13,347
Gain on sales of interests in real estate		—			—			—			(579	)
Gain on sale of discontinued operations		—			—			—			(6,699	)
Depreciation and amortization:
Wholly owned & consolidated partnerships (a)		37,766			32,178			109,484			95,275
Unconsolidated partnerships (a)		1,970			1,714			5,987			5,127
Discontinued operations		—			—			—			215
FUNDS FROM OPERATIONS (b)	$	31,756		$	47,708		$	102,315		$	114,778
FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT	$	0.77		$	1.16		$	2.49		$	2.79
Weighted average number of shares outstanding		38,840			38,181			38,781			37,219
Weighted average effect of full conversion of OP Units		2,238			2,694			2,239			3,610
Effect of common share equivalents		12			295			18			363
Total weighted average shares outstanding, including OP Units		41,090			41,170			41,038			41,192

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

b) Includes the non-cash effect of straight-line rents of $575 and $584 for the third quarter 2008 and 2007, respectively, and the non-cash effect of straight-line rents of $2,334 and $1,539 for the nine months ended September 30, 2008 and 2007, respectively.

	Three Months Ended						Nine Months Ended
STATEMENTS OF INCOME	September 30, 2008			September 30, 2007			September 30, 2008			September 30, 2007
(In thousands, except per share amounts)
REVENUE:
Real estate revenue:
Base rent	$	73,110		$	71,547		$	219,951		$	213,300
Expense reimbursements		35,477			33,369			103,417			101,028
Percentage rent		1,060			1,289			3,526			4,922
Lease termination revenue		320			690			2,618			1,408
Other real estate revenue		3,718			3,902			10,951			11,330
Total real estate revenue		113,685			110,797			340,463			331,988
Management company revenue		1,181			854			2,992			1,827
Interest and other income		240			535			622			2,323
Total revenue		115,106			112,186			344,077			336,138
EXPENSES:
Property operating expenses:
CAM and real estate tax		(33,577	)		(31,620	)		(98,846	)		(95,116	)
Utilities		(7,019	)		(6,886	)		(19,308	)		(19,055	)
Other property operating expenses		(7,148	)		(5,885	)		(19,002	)		(16,955	)
Total property operating expenses		(47,744	)		(44,391	)		(137,156	)		(131,126	)
Depreciation and amortization		(38,435	)		(32,743	)		(111,455	)		(96,970	)
Other expenses:
General and administrative expenses		(10,364	)		(9,801	)		(31,777	)		(30,969	)
Abandoned project costs, income taxes and other expenses		(311	)		(196	)		(1,815	)		(865	)
Total other expenses		(10,675	)		(9,997	)		(33,592	)		(31,834	)
Interest expense, net		(28,450	)		(24,866	)		(80,817	)		(72,338	)
Total expenses		(125,304	)		(111,997	)		(363,020	)		(332,268	)
(Loss) income before equity in income of partnerships, gains on sales of interests in real estate, minority interest and discontinued operations		(10,198	)		189			(18,943	)		3,870
Equity in income of partnerships		2,169			1,148			5,738			3,272
Gain on sales of interests in real estate		—			—			—			579
Gain on sales of non-operating real estate		49			247			49			1,731
(Loss) income before minority interest and discontinued operations		(7,980	)		1,584			(13,156	)		9,452
Minority interest		349			(103	)		499			(884	)
(Loss) income from continuing operations		(7,631	)		1,481			(12,657	)		8,568
Discontinued operations:
Operating results from discontinued operations		—			19			—			(118	)
Gain on sale of discontinued operations		—			—			—			6,699
Minority interest		—			(1	)		—			(691	)
Income from discontinued operations		—			18			—			5,890
Net income		(7,631	)		1,499			(12,657	)		14,458
Redemption of preferred shares		—			13,347			—			13,347
Dividends on preferred shares		—			(1,134	)		—			(7,941	)
Net (loss allocable) income available to common shareholders	$	(7,631	)	$	13,712		$	(12,657	)	$	19,864
BASIC (LOSS) EARNINGS PER SHARE
From continuing operations available to common shareholders	$	(0.20	)	$	0.35		$	(0.35	)	$	0.35
From discontinued operations		—			—			—			0.16
TOTAL BASIC (LOSS) EARNINGS PER SHARE	$	(0.20	)	$	0.35		$	(0.35	)	$	0.51
DILUTED (LOSS) EARNINGS PER SHARE
From continuing operations available to common shareholders	$	(0.20	)	$	0.35		$	(0.35	)	$	0.35
From discontinued operations		—			—			—			0.16
TOTAL DILUTED (LOSS) EARNINGS PER SHARE	$	(0.20	)	$	0.35		$	(0.35	)	$	0.51
Weighted average number of shares outstanding for diluted EPS (1)		38,840			38,476			38,781			37,582

(1) For the three and nine month periods ended September 30, 2008, there are net losses allocable to common shareholders from continuing operations, so the effect of common share equivalents is excluded from the calculation of diluted loss per share for these periods.

PREIT Reports Third Quarter 2008 Results

November 3, 2008

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Pennsylvania Real Estate Investment Trust

Selected Financial Data

	Three Months Ended						Nine Months Ended
NET OPERATING INCOME	September 30, 2008			September 30, 2007			September 30, 2008			September 30, 2007
(In thousands)
Net income	$	(7,631	)	$	1,499		$	(12,657	)	$	14,458
Adjustments:
Depreciation and amortization
Wholly owned and consolidated partnerships		38,435			32,743			111,455			96,970
Unconsolidated partnerships		1,970			1,714			5,987			5,127
Discontinued operations		—			—			—			215
Interest expense, net
Wholly owned and consolidated partnerships		28,450			24,866			80,817			72,338
Unconsolidated partnerships		2,351			3,028			7,668			9,208
Discontinued operations		—			—			—			136
Minority interest		(349	)		104			(499	)		1,575
Gain on sales of interests in real estate		—			—			—			(579	)
Gain on sales of non-operating real estate		(49	)		(247	)		(49	)		(1,731	)
Gain on sale of discontinued operations		—			—			—			(6,699	)
Other expenses		10,675			9,997			33,592			31,834
Management company revenue		(1,181	)		(854	)		(2,992	)		(1,827	)
Interest and other income		(240	)		(535	)		(622	)		(2,323	)
Property net operating income	$	72,431		$	72,315		$	222,700		$	218,702
Same store retail properties	$	71,227		$	72,255		$	219,340		$	218,345
Non-same store properties		1,204			60			3,360			357
Property net operating income	$	72,431		$	72,315		$	222,700		$	218,702

	Three Months Ended						Nine Months Ended
EQUITY IN INCOME OF PARTNERSHIPS	September 30, 2008			September 30, 2007			September 30, 2008			September 30, 2007
(In thousands)
Gross revenue from real estate	$	19,143		$	16,977		$	56,435		$	50,542
Expenses:
Property operating expenses		(6,130	)		(5,097	)		(17,011	)		(15,225	)
Mortgage interest expense		(4,740	)		(6,053	)		(15,912	)		(18,406	)
Depreciation and amortization		(3,975	)		(3,303	)		(11,799	)		(9,881	)
Total expenses		(14,845	)		(14,453	)		(44,722	)		(43,512	)
Net income from real estate		4,298			2,524			11,713			7,030
Partners' share		(2,068	)		(1,262	)		(5,788	)		(3,515	)
Company's share		2,230			1,262			5,925			3,515
Amortization of excess investment		(61	)		(114	)		(187	)		(243	)
EQUITY IN INCOME OF PARTNERSHIPS	$	2,169		$	1,148		$	5,738		$	3,272