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) July 29, 2009

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 July 29, 2009, Pennsylvania Real Estate Investment Trust provided on its web site at www.preit.com its Quarterly Supplemental Disclosure dated June 30, 2009. A copy of the Quarterly Supplemental Disclosure is attached as an exhibit to this report.

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

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Quarterly Supplemental Disclosure dated June 30, 2009.

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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: August 4, 2009	By:	/s/ Bruce Goldman
		Bruce Goldman
		Executive Vice President and General Counsel

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Exhibit Index

99.1 Quarterly Supplemental Disclosure dated June 30, 2009

- 4 -

EX-99.1

Exhibit 99.1

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

Quarter Ended June 30, 2009

www.preit.com

NYSE: PEI

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

June 30, 2009

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 June 30, 2009 and June 30, 2008	4
Income Statement-Proportionate Consolidation Method-Six Months Ended June 30, 2009 and June 30, 2008	5
Net Operating Income-Three Months Ended June 30, 2009 and June 30, 2008	6
Net Operating Income-Six Months Ended June 30, 2009 and June 30, 2008	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 Rent Per Square Foot	12
Mall Occupancy-Owned GLA	13
Strip and Power Center Rent 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
Selected Debt Ratios	30
Shareholder Information	31
Definitions	32

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 credit market conditions, changes in interest rates or the possibility of war or terrorist attacks; the current economic downturn and its effect on PREIT’s existing and potential tenants and their ability to make and meet their obligations to PREIT; 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 above, 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, as amended, for the year ended December 31, 2008. 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, 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 June 30, 2009, the Company’s 56 properties include 38 shopping malls, 14 strip and power centers, and four properties under development. These properties are located in 13 states in the eastern half of the United States, primarily in the Mid-Atlantic region. The operating retail properties have a total of approximately 34.8 million square feet. PREIT is headquartered in Philadelphia, Pennsylvania.

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

Third Quarter 2009                                                                  October 28, 2009

Research Coverage

Company	Analyst	Phone Number
Bank of America/Merrill Lynch	Craig Schmidt	(212) 449-1944
Citi Investment Research	Michael Bilerman	(212) 816-1383
	Quentin Velleley	(212) 816-6981
Green Street Advisors	Jim Sullivan	(949) 640-8780
JP Morgan	Michael W. Mueller	(212) 622-6689
	Sarah King	(212) 622-5670
Macquarie Capital	David Wigginton	(212) 231-6380
Stifel Nicolaus	Nathan Isbee	(443) 224-1346
	David M. Fick	(443) 224-1308

Page 1

Pennsylvania Real Estate Investment Trust

Press Release Announcements

Dividends and Distributions:

July 27, 2009 PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.15 per common share.

May 20, 2009 PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.15 per common share.

Other activities:

July 1, 2009 PREIT scheduled its Second Quarter 2009 earnings call for Wednesday, July 29, 2009.

April 30, 2009 PREIT reported its First Quarter 2009 financial results.

April 16, 2009 PREIT scheduled its First Quarter 2009 earnings call for Thursday, April 30, 2009.

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

Page 2

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

	Quarter Ended June 30,						Year Ended December 31,
	2009			2008			2008			2007
TRADING INFORMATION
High Price	$	7.86		$	27.88		$	29.70		$	50.39
Low Price	$	3.45		$	23.00		$	2.21		$	28.48
Average Daily Trading Volume		1,013,943			385,907			768,718			395,718
MARKET CAPITALIZATION (in thousands, except per share amounts)
EQUITY CAPITALIZATION
Common Shares Outstanding		43,273			39,367			39,468			38,953
OP Units Outstanding		2,329			2,238			2,201			2,395
TOTAL Shares and OP Units Outstanding		45,602			41,605			41,669			41,348
Market Price (closing price at end of period)	$	5.00		$	23.14		$	7.45		$	29.68
Equity Market Capitalization—Shares and OP Units	$	228,009		$	962,752		$	310,437		$	1,227,216
DEBT CAPITALIZATION
Unsecured Debt Balance (1) (2) (3)		829,400			617,500			811,500			617,500
Secured Debt Balance (3)		1,961,752			1,887,851			1,940,334			1,831,211
Debt Capitalization		2,791,152			2,505,351			2,751,834			2,448,711
TOTAL MARKET CAPITALIZATION	$	3,019,161		$	3,468,103		$	3,062,271		$	3,675,927
Equity Capitalization/Total Market Capitalization		7.6	%		27.8	%		10.1	%		33.4	%
Debt Capitalization/Total Market Capitalization		92.4	%		72.2	%		89.9	%		66.6	%
Unsecured Debt Balance/Total Debt		29.7	%		24.6	%		29.5	%		25.2	%
DISTRIBUTIONS PER COMMON SHARE
Ordinary Income		(4)		$	0.564		$	2.254		$	2.105
Section 1250 Gain		(4)			—			—			—
Return of Capital/Non-Taxable		(4)			0.006			0.026			0.175
Distributions per share	$	0.150		$	0.570		$	2.280		$	2.280
Annualized Dividend Yield (5)		12.0	%		9.9	%		30.6	%		7.7	%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	35,206		$	28,444		$	12,711		$	33,227
Credit Facility		500,000			500,000			500,000			500,000
Amount Outstanding		(445,000	)		(355,000	)		(400,000	)		(330,000	)
Letters of Credit		(3,030	)		(17,806	)		(6,428	)		(16,686	)
Available Credit Facility (6)		51,970			127,194			93,572			153,314
TOTAL	$	87,176		$	155,638		$	106,283		$	186,541
Shelf Registration	$	1,000,000		$	1,000,000		$	1,000,000		$	1,000,000
Amount used		—			(344,146	)		(344,146	)		(344,146	)
Available shelf	$	1,000,000		$	655,854		$	655,854		$	655,854

(1) The unsecured debt balance includes exchangeable notes payable of $214,400 as of June 30, 2009, $241,500 as of December 31, 2008, and $287,500 as of June 30, 2008 and December 31, 2007, respectively.

(2) The unsecured debt balance includes $170,000 in senior unsecured Term Loan as of June 30, 2009 and December 31, 2008.

(3) Amounts exclude debt discount on exchangeable notes and debt premium on mortgages.

(4) Tax status of 2009 dividend payments will be available in January 2010.

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

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

Page 3

Pennsylvania Real Estate Investment Trust

Income Statement - Three Months Ended June 30, 2009 and 2008

Proportionate Consolidation Method

(in thousands)

	Three months ended June 30, 2009									Three months ended June 30, 2008
	GAAP			Share of unconsolidated partnerships (1)			Total			GAAP (2)			Share of unconsolidated partnerships (1)			Total
REVENUE:
Real estate revenue:
Base rent	$	74,259		$	6,134		$	80,393		$	73,025		$	6,410		$	79,435
Expense reimbursements		33,996			2,693			36,689			33,512			2,642			36,154
Percentage rent		626			22			648			978			115			1,093
Lease termination revenue		938			—			938			1,413			—			1,413
Other real estate revenue		3,491			436			3,927			3,641			696			4,337
Interest and other income		528			—			528			1,052			—			1,052
Total revenue		113,838			9,285			123,123			113,621			9,863			123,484
EXPENSES:
Property operating expenses:
CAM and real estate taxes		(33,885	)		(1,966	)		(35,851	)		(32,397	)		(2,206	)		(34,603	)
Utilities		(5,923	)		(209	)		(6,132	)		(6,312	)		(242	)		(6,554	)
Other property operating expenses		(6,716	)		(671	)		(7,387	)		(6,275	)		(571	)		(6,846	)
TOTAL PROPERTY OPERATING EXPENSES		(46,524	)		(2,846	)		(49,370	)		(44,984	)		(3,019	)		(48,003	)
Depreciation and amortization		(41,480	)		(2,018	)		(43,498	)		(37,205	)		(2,091	)		(39,296	)
Other expenses:
General and administrative expenses		(9,498	)		—			(9,498	)		(10,907	)		—			(10,907	)
Impairment of assets		(70	)		—			(70	)		—			—			—
Abandoned project costs, income taxes and other expenses		(80	)		—			(80	)		(235	)		—			(235	)
Total other expenses		(9,648	)		—			(9,648	)		(11,142	)		—			(11,142	)
Interest expense, net (3)		(33,249	)		(1,762	)		(35,011	)		(26,238	)		(2,646	)		(28,884	)
Gain on extinguishment of debt		8,532			—			8,532			—			—			—
Total expenses		(122,369	)		(6,626	)		(128,995	)		(119,569	)		(7,756	)		(127,325	)
Loss before equity in income of partnerships and gains on sales of real estate		(8,531	)		2,659			(5,872	)		(5,948	)		2,107			(3,841	)
Equity in income of partnerships		2,659			(2,659	)		—			2,107			(2,107	)		—
Gains on sales of real estate		1,654			—			1,654			—			—			—
Net loss		(4,218	)		—			(4,218	)		(3,841	)		—			(3,841	)
Less: Net loss attributable to the noncontrolling interest		197			—			197			127			—			127
Net loss attributable to Pennsylvania Real Estate Investment Trust	$	(4,021	)	$	—		$	(4,021	)	$	(3,714	)	$	—		$	(3,714	)

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

(2) Prior period reflects current accounting change for debt discount on exchangeable notes in interest expense.

(3) Net of capitalized interest expense of $1,428 and $3,583 for the three months ended June 30, 2009 and June 30, 2008, respectively.

Page 4

Pennsylvania Real Estate Investment Trust

Income Statement - Six Months Ended June 30, 2009 and 2008

Proportionate Consolidation Method

(in thousands)

	Six months ended June 30, 2009									Six months ended June 30, 2008
	GAAP			Share of unconsolidated partnerships (1)			Total			GAAP (2)			Share of unconsolidated partnerships (1)			Total
REVENUE:
Real estate revenue:
Base rent	$	147,445		$	12,419		$	159,864		$	146,842		$	12,648		$	159,490
Expense reimbursements		68,509			5,195			73,704			67,940			4,899			72,839
Percentage rent		1,461			33			1,494			2,466			119			2,585
Lease termination revenue		1,336			120			1,456			2,298			—			2,298
Other real estate revenue		6,769			804			7,573			7,232			862			8,094
Interest and other income		1,230			—			1,230			2,193			—			2,193
Total revenue		226,750			18,571			245,321			228,971			18,528			247,499
EXPENSES:
Property operating expenses:
CAM and real estate taxes		(68,875	)		(4,073	)		(72,948	)		(65,269	)		(3,922	)		(69,191	)
Utilities		(11,816	)		(424	)		(12,240	)		(12,289	)		(462	)		(12,751	)
Other property operating expenses		(12,480	)		(1,294	)		(13,774	)		(11,854	)		(1,241	)		(13,095	)
TOTAL PROPERTY OPERATING EXPENSES		(93,171	)		(5,791	)		(98,962	)		(89,412	)		(5,625	)		(95,037	)
Depreciation and amortization		(80,875	)		(4,073	)		(84,948	)		(73,020	)		(4,017	)		(77,037	)
Other expenses:
General and administrative expenses		(18,853	)		—			(18,853	)		(21,414	)		—			(21,414	)
Impairment of assets		(70	)		—			(70	)		—			—			—
Abandoned project costs, income taxes and other expenses		(399	)		—			(399	)		(1,503	)		—			(1,503	)
Total other expenses		(19,322	)		—			(19,322	)		(22,917	)		—			(22,917	)
Interest expense, net (3)		(65,758	)		(3,530	)		(69,288	)		(54,083	)		(5,317	)		(59,400	)
Gain on extinguishment of debt		9,804			—			9,804			—			—			—
Total expenses		(249,322	)		(13,394	)		(262,716	)		(239,432	)		(14,959	)		(254,391	)
Loss before equity in income of partnerships and gains on sales of real estate		(22,572	)		5,177			(17,395	)		(10,461	)		3,569			(6,892	)
Equity in income of partnerships		5,177			(5,177	)		—			3,569			(3,569	)		—
Gains on sales of real estate		1,654			—			1,654			—			—			—
Net loss		(15,741	)		—			(15,741	)		(6,892	)		—			(6,892	)
Less: Net loss attributable to the noncontrolling interest		738			—			738			242			—			242
Net loss attributable to Pennsylvania Real Estate Investment Trust	$	(15,003	)	$	—		$	(15,003	)	$	(6,650	)	$	—		$	(6,650	)

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

(2) Prior period reflects current accounting change for debt discount on exchangeable notes in interest expense.

(3) Net of capitalized interest expense of $3,240 and $7,439 for the six months ended June 30, 2009 and June 30, 2008, respectively.

Page 5

Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Three Months Ended June 30, 2009 and 2008

(in thousands)

	Three months ended June 30, 2009												Three months ended June 30, 2008
SAME STORE RETAIL/NEW/OTHER	Same			New			Other			Total			Same			New		Other			Total
Real estate revenue:
Base rent	$	79,127		$	830		$	436		$	80,393		$	78,945		$	—	$	490		$	79,435
Expense reimbursements		36,533			145			11			36,689			36,131			—		23			36,154
Percentage rent		648			—			—			648			1,062			—		31			1,093
Lease termination revenue		938			—			—			938			1,413			—		—			1,413
Other real estate revenue		3,745			2			180			3,927			3,904			—		433			4,337
TOTAL REAL ESTATE REVENUE		120,991			977			627			122,595			121,455			—		977			122,432
Property operating expenses:
CAM and real estate taxes		(35,298	)		(195	)		(358	)		(35,851	)		(34,032	)		—		(571	)		(34,603	)
Utilities		(6,132	)		—			—			(6,132	)		(6,554	)		—		—			(6,554	)
Other property operating expenses		(7,306	)		(4	)		(77	)		(7,387	)		(6,796	)		—		(50	)		(6,846	)
TOTAL PROPERTY OPERATING EXPENSES		(48,736	)		(199	)		(435	)		(49,370	)		(47,382	)		—		(621	)		(48,003	)
NET OPERATING INCOME	$	72,255		$	778		$	192		$	73,225		$	74,073		$	—	$	356		$	74,429

	Three months ended June 30, 2009									Three months ended June 30, 2008
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	71,018		$	8,109		$	79,127		$	70,554		$	8,391		$	78,945
Expense reimbursements		34,782			1,751			36,533			34,354			1,777			36,131
Percentage rent		626			22			648			984			78			1,062
Lease termination revenue		938			—			938			1,413			—			1,413
Other real estate revenue		3,618			127			3,745			3,840			64			3,904
TOTAL REAL ESTATE REVENUE		110,982			10,009			120,991			111,145			10,310			121,455
Property operating expenses:
CAM and real estate taxes		(33,506	)		(1,792	)		(35,298	)		(32,449	)		(1,583	)		(34,032	)
Utilities		(6,063	)		(69	)		(6,132	)		(6,470	)		(84	)		(6,554	)
Other property operating expenses		(7,039	)		(267	)		(7,306	)		(6,573	)		(223	)		(6,796	)
TOTAL PROPERTY OPERATING EXPENSES		(46,608	)		(2,128	)		(48,736	)		(45,492	)		(1,890	)		(47,382	)
NET OPERATING INCOME	$	64,374		$	7,881		$	72,255		$	65,653		$	8,420		$	74,073

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

Page 6

Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Six Months Ended June 30, 2009 and June 30, 2008

(in thousands)

	Six months ended June 30, 2009												Six months ended June 30, 2008
SAME STORE RETAIL/NEW/OTHER	Same			New			Other			Total			Same			New		Other			Total
Real estate revenue:
Base rent	$	157,542		$	1,449		$	873		$	159,864		$	158,689		$	—	$	801		$	159,490
Expense reimbursements		73,267			413			24			73,704			72,807			—		32			72,839
Percentage rent		1,494			—			—			1,494			2,553			—		32			2,585
Lease termination revenue		1,456			—			—			1,456			2,298			—		—			2,298
Other real estate revenue		7,198			3			372			7,573			7,661			—		433			8,094
TOTAL REAL ESTATE REVENUE		240,957			1,865			1,269			244,091			244,008			—		1,298			245,306
Property operating expenses:
CAM and real estate taxes		(71,740	)		(486	)		(722	)		(72,948	)		(68,456	)		—		(735	)		(69,191	)
Utilities		(12,240	)		—			—			(12,240	)		(12,750	)		—		(1	)		(12,751	)
Other property operating expenses		(13,582	)		(39	)		(153	)		(13,774	)		(13,013	)		—		(82	)		(13,095	)
TOTAL PROPERTY OPERATING EXPENSES		(97,562	)		(525	)		(875	)		(98,962	)		(94,219	)		—		(818	)		(95,037	)
NET OPERATING INCOME	$	143,395		$	1,340		$	394		$	145,129		$	149,789		$	—	$	480		$	150,269

	Six months ended June 30, 2009									Six months ended June 30, 2008
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	141,073		$	16,469		$	157,542		$	141,936		$	16,753		$	158,689
Expense reimbursements		69,539			3,728			73,267			69,341			3,466			72,807
Percentage rent		1,457			37			1,494			2,454			99			2,553
Lease termination revenue		1,456			—			1,456			2,298			—			2,298
Other real estate revenue		7,027			171			7,198			7,550			111			7,661
TOTAL REAL ESTATE REVENUE		220,552			20,405			240,957			223,579			20,429			244,008
Property operating expenses:
CAM and real estate taxes		(67,782	)		(3,958	)		(71,740	)		(65,216	)		(3,240	)		(68,456	)
Utilities		(12,107	)		(133	)		(12,240	)		(12,597	)		(153	)		(12,750	)
Other property operating expenses		(13,127	)		(455	)		(13,582	)		(12,464	)		(549	)		(13,013	)
TOTAL PROPERTY OPERATING EXPENSES		(93,016	)		(4,546	)		(97,562	)		(90,277	)		(3,942	)		(94,219	)
NET OPERATING INCOME	$	127,536		$	15,859		$	143,395		$	133,302		$	16,487		$	149,789

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

Page 7

Pennsylvania Real Estate Investment Trust

Computation of

Earnings Per Share

(in thousands, except per share amounts)

	Three months ended June 30,						Six months ended June 30,
	2009			2008 (1)			2009			2008 (1)
Net loss attributable to Pennsylvania Real Estate Investment Trust	$	(4,021	)	$	(3,714	)	$	(15,003	)	$	(6,650	)
Dividends on unvested restricted shares		(378	)		(305	)		(473	)		(614	)
	$	(4,399	)	$	(4,019	)	$	(15,476	)	$	(7,264	)
Net loss attributable to Pennsylvania Real Estate Investment Trust - basic	$	(0.11	)	$	(0.10	)	$	(0.40	)	$	(0.19	)
Net loss attributable to Pennsylvania Real Estate Investment Trust - diluted	$	(0.11	)	$	(0.10	)	$	(0.40	)	$	(0.19	)
Weighted average of common shares outstanding		40,269			39,330			39,900			39,272
Weighted average of unvested restricted shares		(1,072	)		(540	)		(799	)		(520	)
Weighted average shares outstanding - basic		39,197			38,790			39,101			38,752
Weighted average effect of common share equivalents (2)		—			—			—			—
Total weighted average shares outstanding - diluted		39,197			38,790			39,101			38,752

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

(2) For the three and six months ended June 30, 2009 and June 30, 2008, respectively, there are net losses, so the effect of common share equivalents is excluded from the calculation of diluted loss per share for these periods because it would be antidilutive.

Page 8

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)

	Three months ended June 30,						Six months ended June 30,						Year Ended December 31,
	2009			2008 (1)			2009			2008 (1)			2008 (1)
FUNDS FROM OPERATIONS (FFO)
Net loss	$	(4,218	)	$	(3,841	)	$	(15,741	)	$	(6,892	)	$	(16,356	)
Gain on sale of interests in real estate		(923	)		—			(923	)		—			—
Depreciation and amortization: (2)
Wholly owned and consolidated partnerships		40,934			36,541			79,719			71,717			149,005
Unconsolidated partnerships		2,018			2,091			4,073			4,017			8,361
FFO	$	37,811		$	34,791		$	67,128		$	68,842		$	141,010
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	37,811		$	34,791		$	67,128		$	68,842		$	141,010
Adjustments:
Straight line rent		(434	)		(1,094	)		(763	)		(1,760	)		(2,016	)
Recurring capital expenditures		(3,457	)		(4,219	)		(3,792	)		(4,905	)		(16,833	)
Tenant allowances		(3,147	)		(2,608	)		(5,731	)		(4,366	)		(15,520	)
Capitalized leasing costs		(1,051	)		(1,521	)		(2,150	)		(2,806	)		(5,313	)
Amortization of debt premium		(334	)		(3,082	)		(655	)		(6,181	)		(9,794	)
Amortization of above- and below- market lease intangibles		(536	)		244			(520	)		238			344
Amortization of exchangeable notes debt discount		739			—			1,493			—			—
Impairment of assets		70			—			70			—			27,592
Gain on extinguishment of debt		(8,532	)		—			(9,804	)		—			(27,075	)
FAD	$	21,129		$	22,511		$	45,276		$	49,062		$	92,395
Weighted average of common shares outstanding		39,197			38,790			39,101			38,752			38,807
Weighted average of OP Units outstanding		2,219			2,238			2,207			2,239			2,236
Weighted average effect of common share equivalents		—			36			—			22			14
Total weighted average shares outstanding, including OP Units		41,416			41,064			41,308			41,013			41,057
Net loss per diluted share	$	(0.11	)	$	(0.10	)	$	(0.40	)	$	(0.19	)	$	(0.30	)
FFO per diluted share	$	0.91		$	0.85		$	1.63		$	1.68		$	3.43
FAD per diluted share	$	0.51		$	0.55		$	1.10		$	1.20		$	2.25
Dividend per common share	$	0.15		$	0.57		$	0.44		$	1.14		$	2.28
PAYOUT RATIOS
Payout Ratio of FFO		46.7	%(3)											66.4	%
Payout Ratio of FAD		73.5	%(3)											101.3	%

(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.

(3) Twelve months ended June 30, 2009

Page 9

Pennsylvania Real Estate Investment Trust

2009 Leasing Activity Summary

			Average Base Rent psf				Change in Base Rent psf					Annualized Tenant Improvements psf (1)
	Number	GLA	Previous		New		Dollar			Percentage
New Leases - Previously Leased Space:
1st Quarter	18	59,174	$	21.12	$	26.32	$	5.20		24.6	%	$	3.09
2nd Quarter	14	47,076		32.74		43.86		11.12		34.0	%		3.96
Total/Average	32	106,250	$	26.27	$	34.09	$	7.82		28.8	%	$	3.47
New Leases - Previously Vacant Space: (2)
1st Quarter	14	33,995		N/A	$	32.18	$	32.18		N/A		$	5.84
2nd Quarter	17	89,159		N/A		22.91		22.91		N/A			1.42
Total/Average	31	123,154		N/A	$	25.47	$	25.47		N/A		$	2.64
Renewal: (3)
1st Quarter	139	376,497	$	25.92	$	26.42	$	0.50		1.9	%	$	0.06
2nd Quarter	56	161,913		24.32		24.86		0.54		2.2	%		0.31
Total/Average	195	538,410	$	25.43	$	25.95	$	0.51		2.0	%	$	0.13
Anchor Renewal:
1st Quarter	2	251,476	$	2.06	$	2.06	$	—		0.0	%	$	—
2nd Quarter	4	503,349		2.67		2.57		(0.10	)	-3.7	%		—
Total/Average	6	754,825	$	2.47	$	2.40	$	(0.07	)	-2.4	%	$	—

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

(2) This category includes newly constructed and recommissioned space.

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

Page 10

Pennsylvania Real Estate Investment Trust

Summarized Rent Per Square Foot and Occupancy Percentages

	June 30, 2009						June 30, 2008						Change
	Avg Base		Occupancy				Avg Base		Occupancy				Avg Base		Occupancy
	Rent		Total(1)		Non-Anchor		Rent		Total(1)		Non-Anchor		Rent		Total		Non-Anchor
Enclosed Malls weighted average (2)	$	31.88	88.3	%	83.7	%	$	31.00	87.8	%	86.6	%	2.9	%	0.5	%	-2.9	%
Strip and Power Centers weighted average	$	15.98	92.2	%	88.5	%	$	16.10	97.1	%	95.4	%	-0.7	%	-4.9	%	-6.9	%
Retail Portfolio weighted average	$	27.80	88.9	%	84.6	%	$	27.33	89.1	%	88.0	%	1.7	%	-0.2	%	-3.4	%
Consolidated Properties	$	28.88	88.7	%	84.1	%	$	28.50	88.4	%	87.2	%	1.3	%	0.3	%	-3.1	%
Unconsolidated Properties	$	23.38	90.8	%	87.4	%	$	22.49	94.9	%	92.8	%	4.0	%	-4.1	%	-5.4	%
Same Properties	$	27.97	88.8	%	84.4	%	$	27.33	89.1	%	88.0	%	2.3	%	-0.3	%	-3.6	%
New Properties	$	15.97	100.0	%	100.0	%		N/A	N/A		N/A		N/A		N/A		N/A

(1) Includes approximately 0.9 million square feet of vacant anchor space, as of June 30, 2009, of which 0.3 million square feet has been leased but is not occupied. As of June 30, 2008 total vacant anchor space was approximately 1.2 million square feet.

(2) 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 that pay fixed rent was $14.75/sq ft as of June 30, 2009 and $13.50/sq ft as of June 30, 2008.

Page 11

Pennsylvania Real Estate Investment Trust

Mall Sales and Rents Per Square Foot

	% of Current Quarter Mall NOI		June 30, 2009						June 30, 2008						Change
			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	28.8	%
Jacksonville Mall			$	31.53	$	478	9.8	%	$	30.49	$	474	9.6	%	3.4	%	1.0	%	0.2	%
Lehigh Valley Mall				43.16		465	13.4	%		39.55		470	12.6	%	9.1	%	-1.0	%	0.8	%
Woodland Mall				42.67		451	15.2	%		42.10		471	14.3	%	1.4	%	-4.2	%	0.9	%
Patrick Henry Mall				37.44		427	12.5	%		37.10		457	11.5	%	0.9	%	-6.6	%	1.0	%
Moorestown Mall				36.18		413	14.7	%		35.14		423	13.9	%	3.0	%	-2.2	%	0.8	%
Cherry Hill Mall				44.97		411	17.3	%		43.58		477	14.5	%	3.2	%	-13.7	%	2.8	%
Sales per square foot between $350 - $400	24.2	%
The Mall at Prince Georges				35.49		383	15.0	%		34.98		408	13.2	%	1.5	%	-5.9	%	1.8	%
Willow Grove Park (3) (4)				42.09		381	16.3	%		42.05		432	14.2	%	0.1	%	-11.8	%	2.1	%
The Gallery at Market East (3) (4)				37.21		369	13.6	%		34.75		376	13.3	%	7.1	%	-1.8	%	0.3	%
Viewmont Mall				30.88		357	13.4	%		30.26		377	12.1	%	2.0	%	-5.3	%	1.3	%
Capital City Mall				32.49		356	11.9	%		32.32		383	10.8	%	0.5	%	-7.1	%	1.1	%
Valley View Mall				31.22		356	12.1	%		29.60		372	11.9	%	5.5	%	-4.3	%	0.2	%
Wyoming Valley Mall				30.97		352	12.6	%		29.19		349	12.2	%	6.1	%	0.8	%	0.4	%
Sales per square foot between $300 - $349	18.0	%
Dartmouth Mall				29.67		346	12.0	%		29.48		378	12.0	%	0.6	%	-8.4	%	0.0	%
Springfield Mall (3) (4)				30.86		335	15.4	%		31.73		378	13.6	%	-2.8	%	-11.5	%	1.8	%
Exton Square Mall				37.29		322	16.3	%		36.75		368	14.4	%	1.5	%	-12.4	%	1.9	%
Francis Scott Key Mall				27.52		316	12.1	%		25.91		359	10.2	%	6.2	%	-12.0	%	1.9	%
Valley Mall				25.28		314	13.0	%		24.49		333	11.6	%	3.2	%	-5.9	%	1.4	%
Crossroads Mall				20.93		306	9.6	%		21.06		277	9.4	%	-0.6	%	10.6	%	0.2	%
Cumberland Mall (3)				26.90		303	14.1	%		27.34		310	12.1	%	-1.6	%	-2.2	%	2.0	%
Nittany Mall				23.50		303	10.6	%		22.13		289	10.9	%	6.2	%	4.8	%	-0.3	%
Sales per square foot under $300	29.0	%
Logan Valley Mall				26.03		299	12.1	%		25.91		307	12.0	%	0.5	%	-2.7	%	0.1	%
Magnolia Mall				24.54		293	13.2	%		25.62		300	13.0	%	-4.2	%	-2.3	%	0.2	%
Palmer Park Mall				25.05		291	12.2	%		23.95		304	12.1	%	4.6	%	-4.3	%	0.1	%
Uniontown Mall				22.63		283	11.3	%		21.18		277	10.8	%	6.9	%	2.3	%	0.5	%
Wiregrass Commons Mall (4)				25.90		278	11.3	%		24.56		285	10.9	%	5.4	%	-2.4	%	0.4	%
North Hanover Mall				24.99		273	13.1	%		24.17		288	12.3	%	3.4	%	-5.3	%	0.8	%
Gadsden Mall				24.77		266	10.2	%		24.08		281	11.0	%	2.9	%	-5.4	%	-0.8	%
South Mall				24.16		264	12.7	%		24.40		302	11.4	%	-1.0	%	-12.6	%	1.3	%
New River Valley Mall				24.63		255	10.9	%		25.80		285	9.5	%	-4.5	%	-10.5	%	1.4	%
Plymouth Meeting Mall				32.37		252	13.2	%		31.85		272	13.5	%	1.6	%	-7.5	%	-0.3	%
Washington Crown Center				21.93		252	13.4	%		22.21		275	11.4	%	-1.3	%	-8.5	%	2.0	%
Beaver Valley Mall (4)				23.64		251	15.4	%		24.92		263	13.9	%	-5.1	%	-4.5	%	1.5	%
Lycoming Mall				20.96		244	12.3	%		20.47		254	11.8	%	2.4	%	-4.1	%	0.5	%
Orlando Fashion Square				35.57		241	18.5	%		35.53		276	16.3	%	0.1	%	-12.7	%	2.2	%
Phillipsburg Mall				25.30		236	14.3	%		25.02		258	13.9	%	1.1	%	-8.7	%	0.4	%
Chambersburg Mall				26.71		229	11.9	%		24.63		238	11.0	%	8.4	%	-4.2	%	0.9	%
Voorhees Town Center				31.97		207	13.6	%		29.93		201	14.8	%	6.8	%	3.0	%	-1.2	%
Enclosed Malls weighted average			$	31.88	$	337	13.6	%	$	31.00	$	355	12.6	%	2.9	%	-5.2	%	1.0	%
Consolidated Properties			$	31.24	$	328	13.5	%	$	30.51	$	348	12.6	%	2.4	%	-5.6	%	0.9	%
Unconsolidated Properties			$	38.92	$	422	13.9	%	$	36.67	$	438	12.9	%	6.1	%	-3.7	%	1.0	%
Same Properties			$	31.88	$	337	13.6	%	$	31.00	$	355	12.6	%	2.9	%	-5.2	%	1.0	%

(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.

(3) Property contains a vacant anchor space as of June 30, 2008.

(4) Property contains a vacant anchor space as of June 30, 2009.

Page 12

Pennsylvania Real Estate Investment Trust

Mall Occupancy - Owned GLA

	June 30, 2009				June 30, 2008				Change
	Total		Non-Anchor		Total		Non-Anchor		Total		Non-Anchor
Beaver Valley Mall	88.1	%	74.5	%	91.8	%	82.3	%	-3.6	%	-7.8	%
Capital City Mall	98.2	%	96.9	%	99.3	%	98.8	%	-1.1	%	-1.9	%
Chambersburg Mall (1)	83.1	%	63.8	%	69.2	%	67.1	%	13.9	%	-3.3	%
Cherry Hill Mall	92.3	%	90.6	%	88.7	%	88.7	%	3.6	%	1.9	%
Crossroads Mall	82.7	%	60.1	%	92.5	%	82.7	%	-9.8	%	-22.6	%
Cumberland Mall (1)	92.8	%	92.2	%	82.0	%	94.8	%	10.8	%	-2.5	%
Dartmouth Mall	92.2	%	87.2	%	96.3	%	93.9	%	-4.1	%	-6.7	%
Exton Square Mall	91.4	%	81.1	%	93.0	%	84.7	%	-1.6	%	-3.6	%
Francis Scott Key Mall (1)	94.6	%	89.7	%	84.1	%	92.3	%	10.5	%	-2.6	%
Gadsden Mall	90.1	%	75.4	%	87.4	%	74.1	%	2.7	%	1.3	%
The Gallery at Market East (2)	50.2	%	75.7	%	42.8	%	84.3	%	7.4	%	-8.6	%
Jacksonville Mall	97.4	%	94.8	%	94.8	%	89.6	%	2.6	%	5.2	%
Lehigh Valley Mall	93.7	%	91.4	%	95.4	%	93.7	%	-1.7	%	-2.3	%
Logan Valley Mall	95.4	%	89.0	%	96.8	%	92.2	%	-1.4	%	-3.2	%
Lycoming Mall (1)	96.5	%	93.4	%	87.3	%	94.8	%	9.2	%	-1.4	%
Magnolia Mall	96.6	%	92.3	%	97.1	%	93.5	%	-0.5	%	-1.2	%
Moorestown Mall	85.2	%	66.8	%	89.5	%	76.3	%	-4.3	%	-9.5	%
New River Valley Mall	96.2	%	93.7	%	94.2	%	90.4	%	2.0	%	3.3	%
Nittany Mall	90.1	%	80.0	%	91.9	%	83.5	%	-1.8	%	-3.5	%
North Hanover Mall	89.9	%	76.0	%	92.7	%	82.9	%	-2.8	%	-6.9	%
Orlando Fashion Square	87.0	%	72.2	%	91.3	%	81.5	%	-4.3	%	-9.3	%
Palmer Park Mall	95.9	%	87.0	%	97.3	%	91.3	%	-1.4	%	-4.3	%
Patrick Henry Mall	96.5	%	93.2	%	98.4	%	96.8	%	-1.9	%	-3.6	%
Phillipsburg Mall	90.5	%	78.3	%	90.7	%	78.8	%	-0.2	%	-0.5	%
Plymouth Meeting Mall	83.2	%	76.6	%	80.5	%	71.4	%	2.7	%	5.2	%
The Mall at Prince Georges	95.8	%	91.1	%	98.5	%	96.8	%	-2.7	%	-5.7	%
South Mall	78.2	%	81.9	%	90.6	%	82.4	%	-12.4	%	-0.5	%
Springfield Mall	86.1	%	86.1	%	88.3	%	88.3	%	-2.2	%	-2.2	%
Uniontown Mall (1)	91.5	%	78.5	%	82.1	%	85.1	%	9.4	%	-6.6	%
Valley Mall	97.1	%	95.0	%	98.2	%	96.9	%	-1.1	%	-1.9	%
Valley View Mall	91.9	%	88.8	%	92.1	%	89.0	%	-0.2	%	-0.2	%
Viewmont Mall	97.9	%	94.4	%	97.0	%	92.3	%	0.9	%	2.1	%
Voorhees Town Center	63.2	%	62.6	%	54.4	%	53.5	%	8.8	%	9.1	%
Washington Crown Center	83.6	%	69.7	%	90.1	%	81.7	%	-6.5	%	-12.0	%
Willow Grove Park (3)	69.5	%	93.6	%	69.9	%	94.5	%	-0.4	%	-0.9	%
Wiregrass Commons Mall (4)	54.5	%	78.9	%	80.9	%	80.9	%	-26.4	%	-2.0	%
Woodland Mall	84.8	%	84.8	%	87.2	%	84.9	%	-2.4	%	-0.1	%
Wyoming Valley Mall	92.4	%	78.1	%	92.0	%	77.3	%	0.4	%	0.8	%
Enclosed Malls weighted average	88.3	%	83.7	%	87.8	%	86.6	%	0.5	%	-2.9	%
Consolidated Properties	88.1	%	83.3	%	87.5	%	86.2	%	0.6	%	-2.9	%
Unconsolidated Properties	92.0	%	89.9	%	93.8	%	92.2	%	-1.8	%	-2.3	%
Same Properties	88.3	%	83.7	%	87.8	%	86.6	%	0.5	%	-2.9	%

(1) The total occupancy percentages for these properties include the former Value City store locations that were vacant as of June 30, 2008.

(2) The total occupancy percentage for The Gallery at Market East includes the former Strawbridge’s store that is currently vacant, pending redevelopment. This vacant department store represents 38.5% and 51.5% of the owned mall GLA as of June 30, 2009 and June 30, 2008, respectively.

(3) The total occupancy percentage for Willow Grove Park includes the former Strawbridge’s store that is currently vacant, pending redevelopment. This vacant department store represents 27.6% and 27.7% of the owned mall GLA as of June 30, 2009 and June 30, 2008, respectively.

(4) The total occupancy percentage as of June 30, 2009 for this property includes the former McRae’s store location that is currently vacant. The vacant store location has been leased to Burlington Coat Factory, which is expected to open in the 3rd Quarter of 2009.

Page 13

Pennsylvania Real Estate Investment Trust

Strip and Power Center Rent Per Square Foot and Occupancy Percentages

	June 30, 2009						June 30, 2008						Change
	Avg		Occupancy				Avg		Occupancy				Avg		Occupancy
	Base Rent		Total		Non-Anchor		Base Rent		Total		Non-Anchor		Base Rent		Total		Non-Anchor
Christiana Center	$	21.94	88.1	%	67.7	%	$	20.83	100.0	%	100.0	%	5.4	%	-11.9	%	-32.3	%
Creekview Center		15.16	100.0	%	100.0	%		15.16	100.0	%	100.0	%	0.0	%	0.0	%	0.0	%
Crest Plaza		17.98	100.0	%	100.0	%		17.66	97.9	%	96.0	%	1.8	%	2.1	%	4.0	%
The Commons at Magnolia		12.04	66.4	%	88.9	%		14.45	97.9	%	95.8	%	-16.7	%	-31.5	%	-6.9	%
Metroplex Shopping Center		19.10	100.0	%	100.0	%		19.10	100.0	%	100.0	%	0.0	%	0.0	%	0.0	%
Monroe Marketplace		15.97	100.0	%	100.0	%		N/A	N/A		N/A		N/A		N/A		N/A
New River Valley Center		14.37	100.0	%	100.0	%		14.45	100.0	%	100.0	%	-0.5	%	0.0	%	0.0	%
Northeast Tower Center		15.44	97.4	%	95.6	%		15.32	96.6	%	94.4	%	0.8	%	0.8	%	1.2	%
The Court at Oxford Valley		16.32	91.3	%	88.1	%		16.43	98.3	%	97.2	%	-0.7	%	-7.0	%	-9.1	%
Paxton Towne Centre		16.04	90.8	%	86.1	%		15.76	100.0	%	100.0	%	1.8	%	-9.2	%	-13.9	%
Red Rose Commons		14.08	72.5	%	72.5	%		13.86	99.2	%	99.2	%	1.6	%	-26.7	%	-26.7	%
Springfield Park		15.70	100.0	%	100.0	%		21.79	90.9	%	73.5	%	-27.9	%	9.1	%	26.5	%
Sunrise Plaza		14.70	97.6	%	77.8	%		20.37	98.2	%	64.8	%	-27.9	%	-0.6	%	13.0	%
Whitehall Mall		11.29	86.8	%	72.0	%		11.81	88.5	%	75.7	%	-4.5	%	-1.7	%	-3.7	%
Weighted Average	$	15.98	92.2	%	88.5	%	$	16.10	97.1	%	95.4	%	-0.7	%	-4.9	%	-6.9	%
Consolidated Properties	$	15.88	94.1	%	91.5	%	$	16.02	99.0	%	98.2	%	-0.9	%	-4.9	%	-6.7	%
Unconsolidated Properties	$	16.08	90.1	%	85.9	%	$	16.15	95.5	%	93.2	%	-0.5	%	-5.4	%	-7.3	%
Same Properties	$	15.98	91.6	%	87.9	%	$	16.10	97.1	%	95.4	%	-0.7	%	-5.5	%	-7.5	%
New Properties	$	15.97	100.0	%	100.0	%		N/A	N/A		N/A		N/A		N/A		N/A

Page 14

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.	48	619,130	4	33,316	52	652,446	$	13,334	$	12,374	4.20	%
Foot Locker, Inc.	69	351,151	3	10,026	72	361,177		8,136		7,616	2.59	%
JCPenney Company, Inc.	24	2,369,736	6	824,327	30	3,194,063		7,593		7,593	2.58	%
Limited Brands, Inc.	59	282,485	13	40,012	72	322,497		7,569		7,128	2.42	%
American Eagle Outfitters, Inc.	41	221,636	1	5,013	42	226,649		6,684		6,381	2.17	%
Sears Holding Corporation	24	2,796,396	5	880,777	29	3,677,173		5,445		5,302	1.80	%
Zale Corporation	76	60,915	1	289	77	61,204		5,518		5,184	1.76	%
Sterling Jewelers, Inc.	44	67,216	0	—	44	67,216		5,043		4,875	1.66	%
Dick’s Sporting Goods	9	436,528	1	50,484	10	487,012		5,475		4,598	1.56	%
Luxottica Group S.p.A.	52	125,345	1	548	53	125,893		4,320		4,002	1.36	%
Golden Gate Capital (4)	16	136,930	3	21,742	19	158,672		4,128		3,739	1.27	%
Regis Corporation	100	124,129	0	—	100	124,129		3,813		3,667	1.25	%
Abercrombie & Fitch Co.	20	136,727	0	—	20	136,727		3,932		3,564	1.21	%
Hallmark Cards, Inc.	40	158,194	5	21,607	45	179,801		3,629		3,462	1.18	%
Transworld Entertainment Corp.	31	143,537	3	13,026	34	156,563		3,450		3,264	1.11	%
Genesco Inc.	60	77,039	0	—	60	77,039		3,389		3,256	1.11	%
Best Buy Co, Inc.	11	236,401	0	—	11	236,401		4,179		3,183	1.08	%
Borders Group, Inc.	24	187,551	1	4,195	25	191,746		3,308		3,128	1.06	%
Pacific Sunwear of California, Inc	29	107,278	4	14,102	33	121,380		3,008		2,854	0.97	%
The Bon-Ton Stores, Inc.	13	1,008,613	1	41,344	14	1,049,957		2,768		2,768	0.94	%
Total Top 20 Tenants	790	9,646,937	52	1,960,808	842	11,607,745	$	104,721	$	97,938	33.28	%
Total Retail Leases					3,279				$	294,318	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) Consists of 17 Express stores and two J. Jill stores.

Page 15

Pennsylvania Real Estate Investment Trust

Lease Expirations as of June 30, 2009

(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
Holdover	133	292,229	2.4	%	$	7,790	$	7,462	2.6	%	$	26.66
2009	191	376,938	3.1	%		10,606		10,216	3.6	%		28.14
2010	523	1,823,020	14.9	%		39,340		37,551	13.3	%		21.58
2011	540	1,830,473	14.9	%		44,744		40,892	14.4	%		24.44
2012	344	1,261,039	10.3	%		32,611		29,816	10.5	%		25.86
2013	274	937,388	7.6	%		22,395		20,968	7.4	%		23.89
2014	182	631,636	5.2	%		16,893		15,205	5.4	%		26.75
2015	176	783,621	6.4	%		21,191		18,925	6.7	%		27.04
2016	227	1,009,861	8.2	%		28,304		25,574	9.0	%		28.03
2017	191	814,455	6.6	%		22,307		20,840	7.4	%		27.39
2018	206	1,020,179	8.3	%		27,167		25,445	9.0	%		26.63
Thereafter	164	1,473,399	12.0	%		31,864		30,475	10.8	%		21.63
Total/Average	3,151	12,254,238	100.0	%	$	305,212	$	283,369	100.0	%	$	24.91

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
2010	14	1,186,277	10.2	%	$	3,488	$	3,488	8.9	%		2.94
2011	22	1,843,899	15.8	%		6,219		5,096	12.9	%		3.37
2012	8	859,686	7.4	%		1,849		1,812	4.6	%		2.15
2013	14	1,087,218	9.3	%		4,587		4,587	11.6	%		4.22
2014	16	1,658,106	14.2	%		5,048		5,048	12.8	%		3.04
2015	6	716,292	6.1	%		2,148		2,148	5.5	%		3.00
2016	3	455,432	3.9	%		863		863	2.2	%		1.90
2017	4	381,158	3.3	%		2,058		1,695	4.3	%		5.40
2018	6	777,965	6.7	%		4,069		4,069	10.3	%		5.23
Thereafter	26	2,705,097	23.1	%		11,257		10,592	26.9	%		4.16
Total/Average	119	11,671,130	100.0	%	$	41,586	$	39,398	100.0	%	$	3.56

(1) Only includes owned space.

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

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

Page 16

Pennsylvania Real Estate Investment Trust

Retail Gross Leasable Area Summary as of June 30, 2009

	Owned GLA
	Anchors	Non-anchors	Total	GLA Not Owned	Total GLA
Malls
Beaver Valley Mall	511,267	445,055	956,322	204,770	1,161,092
Capital City Mall	204,301	284,610	488,911	120,000	608,911
Chambersburg Mall	241,690	212,660	454,350	—	454,350
Cherry Hill Mall	138,000	602,640	740,640	478,885	1,219,525
Crossroads Mall	256,248	195,528	451,776	—	451,776
Cumberland Mall	282,519	385,608	668,127	273,230	941,357
Dartmouth Mall	208,460	322,461	530,921	140,000	670,921
Exton Square Mall	440,301	370,320	810,621	277,468	1,088,089
Francis Scott Key Mall	269,708	297,154	566,862	139,333	706,195
Gadsden Mall	300,960	202,782	503,742	—	503,742
The Gallery at Market East (1)	455,661	397,008	852,669	—	852,669
Jacksonville Mall	242,115	247,461	489,576	—	489,576
Lehigh Valley Mall	212,000	573,300	785,300	371,986	1,157,286
Logan Valley Mall	454,387	323,998	778,385	—	778,385
Lycoming Mall	333,413	381,825	715,238	120,000	835,238
Magnolia Mall	343,118	275,214	618,332	—	618,332
Moorestown Mall	408,356	329,849	738,205	321,200	1,059,405
New River Valley Mall	175,306	265,759	441,065	—	441,065
Nittany Mall	221,462	215,698	437,160	95,000	532,160
North Hanover Mall	206,792	149,699	356,491	—	356,491
Orlando Fashion Square	491,999	433,959	925,958	155,576	1,081,534
Palmer Park Mall	314,235	143,469	457,704	—	457,704
Patrick Henry Mall	279,619	294,853	574,472	140,000	714,472
Phillipsburg Mall	326,552	252,373	578,925	—	578,925
Plymouth Meeting Mall	188,429	485,956	674,385	214,635	889,020
The Mall at Prince Georges	479,619	430,733	910,352	—	910,352
South Mall	188,858	216,375	405,233	—	405,233
Springfield Mall	—	221,781	221,781	367,176	588,957
Uniontown Mall	421,378	276,634	698,012	—	698,012
Valley Mall	280,549	393,111	673,660	243,400	917,060
Valley View Mall	96,357	247,218	343,575	254,596	598,171
Viewmont Mall	386,262	240,932	627,194	120,000	747,194
Voorhees Town Center	4,404	263,778	268,182	396,783	664,965
Washington Crown Center	245,401	290,640	536,041	140,095	676,136
Willow Grove Park	443,430	346,688	790,118	413,121	1,203,239
Wiregrass Commons (2)	94,686	211,716	306,402	332,152	638,554
Woodland Mall	—	392,816	392,816	725,186	1,118,002
Wyoming Valley Mall	592,110	316,799	908,909	—	908,909
Total Malls (38 properties)	10,739,952	11,938,460	22,678,412	6,044,592	28,723,004
Strip and Power Centers
Christiana Center	190,814	111,595	302,409	—	302,409
Creekview Center	—	136,086	136,086	288,916	425,002
Crest Plaza	53,445	60,473	113,918	143,130	257,048
The Commons at Magnolia	50,571	57,764	108,335	126,200	234,535
Metroplex Shopping Center	67,185	410,276	477,461	300,729	778,190
Monroe Marketplace	195,496	120,124	315,568	126,842	442,410
New River Valley Center	—	164,663	164,663	—	164,663
Northeast Tower Center	119,388	172,281	291,669	175,311	466,980
The Court at Oxford Valley	122,735	334,168	456,903	247,623	704,526
Paxton Towne Centre	151,627	292,833	444,460	273,058	717,518
Red Rose Commons	—	263,452	263,452	199,590	463,042
Springfield Park	83,539	45,272	128,811	145,669	274,480
Sunrise Plaza	228,874	27,488	256,362	—	256,362
Whitehall Mall	294,635	262,866	557,501	—	557,501
Total Strip and Power Centers (14 properties)	1,558,309	2,459,341	4,017,598	2,027,068	6,044,666
CONSOLIDATED PROPERTIES	11,518,167	12,286,686	23,804,801	6,438,887	30,243,688
UNCONSOLIDATED PROPERTIES	780,094	2,111,115	2,891,209	1,632,773	4,523,982
TOTAL PROPERTIES	12,298,261	14,397,801	26,696,010	8,071,660	34,767,670

(1) Includes 328,390 sf of anchor space subject to redevelopment plans.

(2) Includes 94,686 sf of anchor space under redevelopment.

Page 17

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2009

Properties	Ownership Interest		Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
MALLS
Beaver Valley Mall Monaca, PA	100	%	2002	1970/1991	Boscov’s JCPenney Macy’s Sears	9/30/18 9/30/17 (1) 8/15/11
Capital City Mall Camp Hill, PA	100	%	2003	1974/2005	JCPenney Macy’s Sears	11/30/10 (1) 7/28/14
Chambersburg Mall Chambersburg, PA	100	%	2003	1982	Bon-Ton Burlington Coat Factory JCPenney Sears	1/28/11 1/31/19 3/31/12 2/9/10
Cherry Hill Mall Cherry Hill, NJ	100	%	2003	1961/2009	The Container Store Crate and Barrel JCPenney Macy’s Nordstrom	2/28/18 1/31/23 (1) (1) 3/31/24
Crossroads Mall (2) Beckley, WV	100	%	2003	1981	Belk JCPenney Sears	11/5/14 12/31/11 3/31/11
Cumberland Mall Vineland, NJ	100	%	2005	1973/2003	Best Buy BJ’s Boscov’s Burlington Coat Factory Home Depot JCPenney	1/31/16 (1) (1) 4/30/19 10/31/19 11/30/13
Dartmouth Mall Dartmouth, MA	100	%	1997	1971/2000	JCPenney Macy’s Sears	7/31/14 (1) 4/12/16
Exton Square Mall (2) Exton, PA	100	%	2003	1973/2000	Boscov’s JCPenney K-Mart Macy’s Sears	10/31/19 5/31/20 (1) (1) 10/6/19
Francis Scott Key Mall Frederick, MD	100	%	2003	1978/1991	Barnes & Noble JCPenney Macy’s Sears Value City Furniture	4/30/17 9/30/11 (1) 7/31/13 1/31/19
Gadsden Mall Gadsden, AL	100	%	2005	1974/1990	Belk JCPenney Sears	7/31/14 1/31/29 3/5/14
The Gallery at Market East (2) Philadelphia, PA	100	%	2003	1977/1990	Burlington Coat Factory	2/28/32
Jacksonville Mall Jacksonville, NC	100	%	2003	1981/2008	Belk JCPenney Sears	8/21/11 8/31/10 8/4/11
Lehigh Valley Mall (3) Allentown, PA	50	%	1973	1977/2007	Barnes & Noble Boscov’s JCPenney Macy’s	10/31/17 (1) (1) 7/31/12
Logan Valley Mall Altoona, PA	100	%	2003	1960/1997	JCPenney Macy’s Sears	1/31/17 1/31/15 10/31/16
Lycoming Mall Pennsdale, PA	100	%	2003	1978/2007	Best Buy Bon-Ton Borders Burlington Coat Factory Dick’s Sporting Goods JCPenney Macy’s Sears	1/31/17 7/27/11 1/31/17 1/31/19 1/31/17 10/31/10 (1) 7/31/13
Magnolia Mall Florence, SC	100	%	1997	1979/2007	Belk Best Buy Dick’s Sporting Goods JCPenney Sears	1/31/11 1/31/13 1/31/18 3/31/12 10/16/14
Moorestown Mall Moorestown, NJ	100	%	2003	1963/2008	Boscov’s Lord & Taylor Macy’s Sears	10/31/15 (1) (1) 10/5/22
New River Valley Mall Christiansburg, VA	100	%	2003	1988/2007	Belk Dick’s Sporting Goods JCPenney Regal Cinemas Sears	4/19/11 1/31/17 3/31/13 4/30/22 8/2/13

Page 18

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2009 (continued)

Properties	Ownership Interest		Date Acquired	Year Built/Last Renovated	Anchors /Major Tenants	Lease Expiration
Nittany Mall State College, PA	100	%	2003	1968/1990	Bon-Ton JCPenney Macy’s Sears	1/31/13 7/31/10 (1) 8/28/10
North Hanover Mall Hanover, PA	100	%	2003	1967/1999	Dick’s Sporting Goods JCPenney Sears	1/31/18 1/31/11 11/30/14
Orlando Fashion Square (2) Orlando, FL	100	%	2004	1973/2003	Dillard’s JCPenney Macy’s Sears	1/31/14 4/30/13 10/30/71 (1)
Palmer Park Mall Easton, PA	100	%	1972/2003	1972/1998	Bon-Ton Boscov’s	7/25/14 10/31/18
Patrick Henry Mall Newport News, VA	100	%	2003	1988/2005	Borders Dick’s Sporting Goods Dillard’s JCPenney Macy’s	1/31/20 1/31/22 9/22/13 10/31/15 (1)
Phillipsburg Mall Phillipsburg, NJ	100	%	2003	1989/2003	Bon-Ton JCPenney Kohl’s Sears	1/31/15 3/31/10 1/31/25 4/30/14
Plymouth Meeting Mall (2) Plymouth Meeting, PA	100	%	2003	1966/1999	AMC Theater Boscov’s Macy’s	12/31/18 10/31/16 (1)
The Mall at Prince Georges Hyattsville, MD	100	%	1998	1959/2004	JCPenney Macy’s Marshalls Ross Dress for Less Target	7/31/11 10/31/18 9/30/16 1/31/18 1/31/15
South Mall Allentown, PA	100	%	2003	1975/1992	Bon-Ton Stein Mart	1/28/11 10/31/11
Springfield Mall Springfield, PA	50	%	2005	1974/1997	Macy’s	(1)
Uniontown Mall (2) Uniontown, PA	100	%	2003	1972/1990	Bon-Ton Burlington Coat Factory JCPenney Roomful Express Furn. Sears Teletech Customer Care	1/29/11 1/31/19 10/31/10 3/31/10 2/25/13 6/30/13
Valley Mall Hagerstown, MD	100	%	2003	1974/1999	Bon-Ton JCPenney Macy’s Sears	1/31/14 10/31/14 (1) (1)
Valley View Mall La Crosse, WI	100	%	2003	1980/2001	Barnes & Noble Herberger’s JCPenney Macy’s Sears	11/30/16 (1) 7/31/10 (1) (1)
Viewmont Mall Scranton, PA	100	%	2003	1968/2006	JCPenney Macy’s Sears	10/31/10 (1) 12/31/10
Voorhees Town Center (2) Voorhees, NJ	100	%	2003	1970/2007	Boscov’s Macy’s The Star Group	(1) (1) 8/31/28
Washington Crown Center Washington, PA	100	%	2003	1969/1999	Bon-Ton Gander Mountain Sports Macy’s Sears	1/31/15 7/24/13 (1) 8/17/14
Willow Grove Park Willow Grove, PA	100	%	2000/2003	1982/2001	Bloomingdale’s The Cheesecake Factory Macy’s Sears	(1) 1/31/28 1/31/22 (1)\
Wiregrass Commons Mall Dothan, AL	100	%	2003	1986/2008	Belk Dillard’s JCPenney	1/31/37 (1) (1)
Woodland Mall Grand Rapids, MI	100	%	2005	1968/1998	Apple JCPenney Kohl’s Macy’s Sears	6/30/15 (1) 1/31/19 (1) (1)
Wyoming Valley Mall Wilkes-Barre, PA	100	%	2003	1971/2006	Bon-Ton JCPenney Macy’s Sears	1/31/12 4/30/12 1/31/12 8/1/11

Page 19

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2009 (continued)

Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors /Major Tenants	Lease Expiration
POWER CENTERS
Christiana Center Newark, DE	100%	1998	1998	Costco Dick’s Sporting Goods	9/30/18 11/30/13
Creekview Center Warrington, PA	100%	1999	2001	Genuardi’s Lowe’s Target	12/31/21 (1) (1)
Metroplex Shopping Center (3) Plymouth Meeting, PA	50%	1999	2001	Giant Food Store Lowe’s Target	2/28/21 (1) (1)
Monroe Marketplace Selinsgrove, PA	100%	2007	2008	Bed, Bath & Beyond Best Buy Dick’s Sporting Goods Giant Food Store Kohl’s Target	1/31/19 10/31/18 1/31/19 10/31/28 1/31/29 (1)
New River Valley Center Christiansburg, VA	100%	2005	2007	Bed, Bath & Beyond Best Buy Staples	1/31/18 1/31/18 11/30/17
Northeast Tower Center Philadelphia, PA	100%	1998	1997	Home Depot Raymour & Flanigan Wal-Mart	(1) (1) 1/31/14
The Court at Oxford Valley (3) Langhorne, PA	50%	1997	1996	Best Buy BJ’s Dick’s Sporting Goods Home Depot	5/31/11 (1) 4/30/11 (1)
Paxton Towne Centre Harrisburg, PA	100%	1999	2001	Costco Kohl’s Target Weis Markets	(1) 1/25/21 (1) 11/30/20
Red Rose Commons (3) Lancaster, PA	50%	1998	1998	Home Depot Weis Markets	(1) (1)
Sunrise Plaza Forked River, NJ	100%	2005	2007	Home Depot Kohl’s Staples	1/31/38 10/31/28 2/28/19
Whitehall Mall (3) Allentown, PA	50%	1964	1964/1998	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	Target Weis Market	(1) 10/31/14
The Commons at Magnolia Florence, SC	100%	1999	1991/2002	Bed, Bath & Beyond Target	1/31/13 (1)
Springfield Park Springfield, PA	50%	1997/1998	1997/1998	Bed, Bath & Beyond LA Fitness Target	1/31/14 3/31/17 (1)

(1) Space is not owned by PREIT.

(2) Property is subject to a ground lease.

(3) Property is managed by a third party.

Page 20

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method ⁽¹⁾

(in thousands, except per share amounts)

	June 30, 2009									December 31, 2008
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,431,092		$	207,343		$	3,638,435		$	3,291,103		$	206,054		$	3,497,157
Construction in progress		351,204			1,108			352,312			411,479			2,495			413,974
Land held for development		9,337			177			9,514			5,466			177			5,643
TOTAL INVESTMENTS IN REAL ESTATE		3,791,633			208,628			4,000,261			3,708,048			208,726			3,916,774
Accumulated depreciation		(580,232	)		(56,163	)		(636,395	)		(516,832	)		(52,703	)		(569,535	)
Net investments in real estate		3,211,401			152,465			3,363,866			3,191,216			156,023			3,347,239
Investments in partnerships, at equity		35,102			(35,102	)		—			36,164			(36,164	)		—
Other assets:
Cash and cash equivalents		29,950			5,256			35,206			9,786			2,925			12,711
Rent and other receivables (2)		46,536			8,118			54,654			57,970			8,491			66,461
Intangible assets, net		53,273			550			53,823			68,296			645			68,941
Deferred costs and other assets, net		81,515			7,032			88,547			80,845			7,841			88,686
TOTAL OTHER ASSETS		246,376			(14,146	)		232,230			253,061			(16,262	)		236,799
TOTAL ASSETS	$	3,457,777		$	138,319		$	3,596,096		$	3,444,277		$	139,761		$	3,584,038
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable	$	1,778,676		$	183,076		$	1,961,752		$	1,756,270		$	184,064		$	1,940,334
Debt premium on mortgage notes payable		3,372			—			3,372			4,026			—			4,026
Exchangeable notes (net of discount of $8,802 and $11,421 as of June 30, 2009 and December 31, 2008, respectively)		205,598			—			205,598			230,079			—			230,079
Credit Facility		445,000			—			445,000			400,000			—			400,000
Senior unsecured term loan		170,000			—			170,000			170,000			—			170,000
Tenants’ deposits and deferred rent		17,172			3,517			20,689			13,112						13,112
Distributions in excess of partnership investments		47,428			(47,428	)		—			48,788			(48,788	)		—
Accrued construction expenses		29,381			—			29,381			38,859			—			38,859
Fair value of derivative liabilities		15,214			—			15,214			29,169			—			29,169
Other liabilities		48,309			(814	)		47,495			55,711			4,485			60,196
TOTAL LIABILITIES		2,760,150			138,351			2,898,501			2,746,014			139,761			2,885,775
Equity:
TOTAL EQUITY		697,627			(32	)		697,595			698,263			—			698,263
TOTAL LIABILITIES AND EQUITY	$	3,457,777		$	138,319		$	3,596,096		$	3,444,277		$	139,761		$	3,584,038

(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 $27.9 million ($24.9 million wholly owned, $3.0 million partnership) as of June 30, 2009 and $27.1 million ($24.2 million wholly owned, $2.9 million partnership) as of December 31, 2008.

Page 21

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Property Type ⁽¹⁾

(in thousands, except per share amounts)

	June 30, 2009												December 31, 2008
	Malls			Strip and Power Centers			Corporate, Development and Other Properties			Total			Malls			Strip and Power Centers			Corporate, Development and Other Properties			Total
ASSETS:
Investments in real estate:
Investments in real estate, at cost	$	3,261,693		$	379,155		$	7,101		$	3,647,949		$	3,136,946		$	359,590		$	6,264		$	3,502,800
Construction in progress		258,852			16,479			76,981			352,312			305,773			35,383			72,818			413,974
TOTAL INVESTMENTS IN REAL ESTATE		3,520,545			395,634			84,082			4,000,261			3,442,719			394,973			79,082			3,916,774
Accumulated depreciation		(551,262	)		(84,036	)		(1,097	)		(636,395	)		(491,047	)		(77,564	)		(924	)		(569,535	)
Net investments in real estate		2,969,283			311,598			82,985			3,363,866			2,951,672			317,409			78,158			3,347,239
Other assets:
Cash and cash equivalents		18,829			2,035			14,342			35,206			14,888			1,999			(4,176	)		12,711
Rent and other receivables (2)		32,933			10,619			11,102			54,654			42,193			10,867			13,401			66,461
Intangible assets, net		46,304			—			7,519			53,823			61,335			—			7,606			68,941
Deferred costs and other assets, net		63,628			10,897			14,022			88,547			60,611			10,763			17,312			88,686
TOTAL OTHER ASSETS		161,694			23,551			46,985			232,230			179,027			23,629			34,143			236,799
TOTAL ASSETS	$	3,130,977		$	335,149		$	129,970		$	3,596,096		$	3,130,699		$	341,038		$	112,301		$	3,584,038
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable	$	1,744,859		$	206,841		$	10,052		$	1,961,752		$	1,740,564		$	191,770		$	8,000		$	1,940,334
Debt premium on mortgage notes payable		3,372			—			—			3,372			4,026			—			—			4,026
Exchangeable notes (net of discount of $8,802 and $11,421 as of June 30, 2009 and December 31, 2008, respectively)		—			—			205,598			205,598			—			—			230,079			230,079
Credit Facility		—			—			445,000			445,000			—			—			400,000			400,000
Senior unsecured term loan		—			—			170,000			170,000			—			—			170,000			170,000
Tenants’ deposits and deferred rent		18,018			2,501			170			20,689			—			—			—			—
Accrued construction expenses		—			—			29,381			29,381			—			—			—			—
Fair value of derivative liabilities		—			—			15,214			15,214			—			—			—			—
Other liabilities		30,417			—			17,078			47,495			51,368			1,382			88,586			141,336
TOTAL LIABILITIES		1,796,666			209,342			892,493			2,898,501			1,795,958			193,152			896,665			2,885,775
Equity:
TOTAL EQUITY		1,334,311			125,807			(762,523	)		697,595			1,334,741			147,886			(784,364	)		698,263
TOTAL LIABILITIES AND EQUITY	$	3,130,977		$	335,149		$	129,970		$	3,596,096		$	3,130,699		$	341,038		$	112,301		$	3,584,038

(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 $27.9 million ($24.9 million wholly owned, $3.0 million partnership) as of June 30, 2009 and $27.1 million ($24.2 million wholly owned, $2.9 million partnership) as of December 31, 2008.

Page 22

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾

(in thousands)

	June 30, 2009								December 31, 2008
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Malls
Beaver Valley Mall	$	68,468	$	31	$	15,155	$	53,344	$	68,069	$	26	$	13,748	$	54,347
Capital City Mall		94,492		—		16,292		78,200		94,613		10		14,579		80,044
Chambersburg Mall		41,993		—		6,218		35,775		41,993		—		5,606		36,387
Cherry Hill Mall		388,810		48,293		44,153		392,950		314,309		89,785		36,058		368,036
Crossroads Mall		34,319		—		6,879		27,440		34,305		—		6,257		28,048
Cumberland Mall		62,028		3		6,222		55,809		59,188		7,032		5,355		60,865
Dartmouth Mall		61,686		—		23,188		38,498		61,660		—		21,840		39,820
Exton Square Mall		146,744		—		21,474		125,270		146,706		—		19,614		127,092
Francis Scott Key Mall		79,144		90		12,389		66,845		75,646		2,780		10,747		67,679
Gadsden Mall		60,415		—		6,557		53,858		57,094		3,007		5,510		54,591
The Gallery at Market East		80,311		85,140		12,519		152,932		80,271		58,013		11,345		126,939
Jacksonville Mall		77,210		9		12,062		65,157		75,772		836		10,633		65,975
Logan Valley Mall		95,634		—		18,024		77,610		95,623		—		16,193		79,430
Lycoming Mall		76,732		—		11,636		65,096		76,720		1		10,240		66,481
Magnolia Mall		86,691		38		20,473		66,256		86,264		—		18,918		67,346
Moorestown Mall		88,238		2,914		19,399		71,753		87,594		2,855		17,439		73,010
New River Valley Mall		57,656		—		10,389		47,267		57,406		6		8,775		48,637
Nittany Mall		42,993		—		7,132		35,861		42,774		—		6,431		36,343
North Hanover Mall		38,360		17,085		6,231		49,214		38,749		16,216		5,501		49,464
Orlando Fashion Square		114,164		231		14,280		100,115		113,861		198		12,599		101,460
Palmer Park Mall		34,515		—		10,978		23,537		34,512		—		10,543		23,969
Patrick Henry Mall		140,267		—		24,342		115,925		139,272		—		21,652		117,620
Phillipsburg Mall		52,855		—		8,324		44,531		52,855		164		7,479		45,540
Plymouth Meeting Mall		110,505		50,304		17,195		143,614		89,682		63,080		14,519		138,243
The Mall at Prince Georges		100,058		177		27,831		72,404		99,912		175		26,054		74,033
South Mall		33,028		—		4,642		28,386		32,797		—		4,173		28,624
Uniontown Mall		38,003		—		7,418		30,585		38,003		—		6,685		31,318
Valley Mall		91,355		17		16,752		74,620		91,165		165		14,965		76,365
Valley View Mall		67,208		—		10,054		57,154		67,207		—		9,082		58,125
Viewmont Mall		87,742		—		12,824		74,918		87,255		—		11,371		75,884
Voorhees Town Center		55,684		20,301		7,839		68,146		45,613		25,376		6,049		64,940
Washington Crown Center		40,241		—		10,668		29,573		40,241		—		9,769		30,472
Willow Grove Park		189,086		23,897		37,076		175,907		188,989		23,755		34,010		178,734
Wiregrass Commons Mall		45,449		5,239		6,352		44,336		41,384		9,020		5,543		44,861
Woodland Mall		178,997		4,711		20,104		163,604		180,606		2,061		17,234		165,433
Wyoming Valley Mall		105,717		—		16,251		89,466		104,266		185		14,310		90,141
Total Consolidated Malls		3,166,798		258,480		529,322		2,895,956		3,042,376		304,746		470,826		2,876,296
Unconsolidated Malls
Lehigh Valley Mall		40,019		35		14,491		25,563		39,810		242		13,720		26,332
Springfield Mall		54,876		337		7,449		47,764		54,760		785		6,501		49,044
Total Unconsolidated Malls		94,895		372		21,940		73,327		94,570		1,027		20,221		75,376
TOTAL MALLS	$	3,261,693	$	258,852	$	551,262	$	2,969,283	$	3,136,946	$	305,773	$	491,047	$	2,951,672

(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.

Page 23

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾ (continued)

(in thousands)

	June 30, 2009								December 31, 2008
	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 Strip and Power Centers
Christiana Center	$	40,935	$	—	$	10,507	$	30,428	$	40,935	$	—	$	9,937	$	30,998
Creekview Center		19,090		—		6,978		12,112		19,090		—		6,520		12,570
Crest Plaza		16,509		—		4,770		11,739		16,509		—		4,447		12,062
The Commons at Magnolia		11,477		478		3,720		8,235		10,119		1,837		3,437		8,519
Monroe Marketplace		43,188		11,491		986		53,693		32,658		22,351		315		54,694
New River Valley Center		26,744		—		1,689		25,055		26,746		—		1,175		25,571
Northeast Tower Center		33,639		—		7,098		26,541		33,630		—		6,666		26,964
Paxton Towne Centre		56,206		—		13,522		42,684		56,115		67		12,680		43,502
Sunrise Plaza		25,843		4,495		1,640		28,698		18,391		11,122		829		28,684
Total Consolidated Strip and Power Centers		273,631		16,464		50,910		239,185		254,193		35,377		46,006		243,564
Unconsolidated Strip and Power Centers
Metroplex Shopping Center		42,167		—		12,981		29,186		42,168		—		12,203		29,965
The Court at Oxford Valley		27,847		15		7,673		20,189		27,847		6		7,370		20,483
Red Rose Commons		12,562		—		3,320		9,242		12,562		—		3,147		9,415
Whitehall Mall		15,719		—		7,885		7,834		15,719		—		7,644		8,075
Springfield Park		7,229		—		1,267		5,962		7,101		—		1,194		5,907
Total Unconsolidated Strip and Power Centers		105,524		15		33,126		72,413		105,397		6		31,558		73,845
TOTAL STRIP AND POWER CENTERS	$	379,155	$	16,479	$	84,036	$	311,598	$	359,590	$	35,383	$	77,564	$	317,409
Development Properties
Pitney Road Plaza	$	—	$	12,323	$	—	$	12,323	$	—	$	8,970	$	—	$	8,970
Springhills		—		32,532		—		32,532		—		31,382		—		31,382
White Clay Point		—		31,405		—		31,405		—		31,004		—		31,004
Total Development Properties		—		76,260		—		76,260		—		71,356		—		71,356
Unconsolidated Development Properties
Pavilion at Market East		6,924		721		1,097		6,548		6,087		1,462		924		6,625
Total Unconsolidated Development Properties		6,924		721		1,097		6,548		6,087		1,462		924		6,625
Other Properties
Land held for development - unconsolidated		177		—		—		177		177		—		—		177
Total Other Properties		177		—		—		177		177		—		—		177
TOTAL DEVELOPMENT AND OTHER	$	7,101	$	76,981	$	1,097	$	82,985	$	6,264	$	72,818	$	924	$	78,158
TOTAL INVESTMENT IN REAL ESTATE	$	3,647,949	$	352,312	$	636,395	$	3,363,866	$	3,502,800	$	413,974	$	569,535	$	3,347,239
CONSOLIDATED PROPERTIES	$	3,440,429	$	351,204	$	580,232	$	3,211,401	$	3,296,569	$	411,479	$	516,832	$	3,191,216
UNCONSOLIDATED PROPERTIES		207,520		1,108		56,163		152,465		206,231		2,495		52,703		156,023
TOTAL INVESTMENT IN REAL ESTATE	$	3,647,949	$	352,312	$	636,395	$	3,363,866	$	3,502,800	$	413,974	$	569,535	$	3,347,239

(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.

Page 24

Pennsylvania Real Estate Investment Trust

Property Redevelopment and Repositioning Summary as of June 30, 2009

NAME OF PROJECT LOCATION	PREIT’s PROJECTED SHARE OF COST(1)	PREIT’S INVESTMENT TO DATE	EXPECTED RETURN ON INCREMENTAL INVESTMENT	CONSTRUCTION START DATE	EXPECTED CONSTRUCTION COMPLETION
	(in millions)	(in millions)
ENCLOSED MALL
Cherry Hill Mall Cherry Hill, NJ	$218.0	$206.0	6.6%	2007	2009
-Opened Crate & Barrel and The Container Store in November 2007 on two outparcels totaling 59,000 sf; -Opened a two-level, 138,000 sf Nordstrom in March 2009; -Opened a 16,500 sf Maggiano’s in March 2009; -Opened a 9,200 sf Seasons 52 in April 2009; -Opened an 8,000 sf The Capital Grille in June 2009; -Opening a 5,500 sf California Pizza Kitchen in August 2009; -Opened 45,000 sf of a total 88,000 sf of new in-line retail space; -Net increase in total property GLA will be approximately 95,000 sf; -Incremental return based on estimated net operating income in projected stabilization year of 2011.
The Gallery at Market East Philadelphia, PA	81.6	85.2	7.6%	2008	2011
-Opening 224,100 sf of office space on the 4th, 5th, and 6th floors of the vacant former Strawbridge’s store, expected to be occupied by the Commonwealth of Pennsylvania, in August 2009; -Remaining 328,390 sf is to be used for future development. -Incremental return based on estimated net operating income in projected stabilization year of 2011.
Plymouth Meeting Mall Plymouth Meeting, PA	96.6	89.9	8.0%	2007	2009
-Opened P.F. Chang’s China Bistro and California Pizza Kitchen, totaling 13,000 sf, in May 2008; -Opened 10,000 sf Redstone American Grill in June 2008; -Opened 35,000 sf Dave and Buster’s in July 2008: -Opened 4,000 sf Citibank outparcel in October 2008; -Opened 6,800 sf Benihana in December 2008; -Opened 20,000 sf of a total of 38,000 sf of new retail space; -Opening a 65,000 sf Whole Foods Market in 2009; -Net increase in property GLA will be approximately 142,000 sf; -Incremental return based on estimated net operating income in projected stabilization year of 2012.
Wiregrass Commons Mall Dothan, AL	12.8	9.2	7.5%	2008	2009
-Purchased 65,000 sf former Parisian store and expanded to an 85,000 sf Belk, which opened in October 2008; -Former McRae’s anchor will be filled with a 95,000 sf Burlington Coat Factory, which was delivered in the 4th Quarter of 2008 and expected to open in the 3rd Quarter of 2009; -Interior mall renovation was completed in the 4th Quarter of 2008. -Incremental return based on estimated net operating income in projected stabilization year of 2010.
MIXED USE
Voorhees Town Center Voorhees, NJ	83.0	61.6	7.8%	2007	2010
-Phase I -Reduced mall GLA by 470,000 sf to 654,000 sf; -Opened 50,000 sf office building in May 2008; -Opened 10,000 sf The Learning Center in August 2008; -Phase II -Opening a mixed use town center of approximately 140,000 sf, including: -Opened Rizzieri Masters Salon in April 2009; -Opened Rizzieri Aveda School for Beauty and Wellness in May 2009; -Opening 16,000 sf of outparcel space; --Opened 39 residential units for leasing. A total of approximately 425 residential units to be constructed. The residential units are being constructed by our development partners and their affiliates. -Net reduction in property GLA will be approximately 244,000 sf; -Incremental return based on estimated net operating income in projected stabilization year of 2012.

⁽¹⁾ PREIT’s projected share of costs is net of any expected tenant reimbursements, parcel sales, tax credits or other incentives.

Page 25

Pennsylvania Real Estate Investment Trust

Development Property Summary as of June 30, 2009

NAME OF PROJECT LOCATION	TOTAL PROJECTED PROPERTY GLA (sq ft) (1)	PREIT’s PROJECTED SHARE OF COST (2)	PREIT’s INVESTMENT TO DATE	EXPECTED RETURN ON INCREMENTAL INVESTMENT	CONSTRUCTION START DATE	EXPECTED DATE OF COMPLETION	% LEASED	% OCCUPIED
		(in millions)	(in millions)
DEVELOPMENT PROPERTIES
POWER CENTERS
Pitney Road Plaza
Lancaster, PA	227,000	$18.8	$12.3	10.1%	2008	2009	95%	0%
-Opening a 169,000 sf Lowe’s in the 3rd Quarter of 2009;
-Opening a 46,000 sf Best Buy in the 4th Quarter of 2009;
-Balance of the center will be comprised of outparcels totaling approximately 12,000 sf.
MIXED USE
White Clay Point (3)
Landenberg, PA	TBD	TBD	43.2	TBD	TBD	TBD	N/A	N/A
-The planned development includes retail and other mixed uses, including a residential component, to be completed in multiple phases.
Springhills Gainesville, FL	TBD	TBD	32.5	TBD	TBD	TBD	N/A	N/A
-540 acres of land were acquired in 2006. Site development is the 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	0.7	TBD	TBD	TBD	N/A	N/A
-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⁾ PREIT’s projected share of costs is net of any expected tenant reimbursements, parcel sales, tax credits or other incentives.

⁽³⁾ Amount invested as of June 30, 2009 excludes an $11.8 million impairment charge that was recorded in the 4th Quarter of 2008.

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Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)

	Three months ended June 30, 2009						Six months ended June 30, 2009
	Consolidated		Unconsolidated		Total		Consolidated		Unconsolidated			Total
Redevelopment projects with incremental GLA and/or anchor replacement	$	23,643	$	17	$	23,660	$	81,179	$	(434	)	$	80,745
New development projects		3,046		—		3,046		6,198		96			6,294
Tenant allowances		3,016		131		3,147		5,493		238			5,731
Recurring capital expenditures:
CAM expenditures		2,678		—		2,678		2,999		—			2,999
Non-CAM expenditures		779		—		779		791		2			793
Total recurring capital expenditures		3,457		—		3,457		3,790		2			3,792
Total	$	33,162	$	148	$	33,310	$	96,660	$	(98	)	$	96,562

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Pennsylvania Real Estate Investment Trust

Debt Analysis as of June 30, 2009

(in thousands)

	Outstanding Debt
	Fixed Rate (1)			% of Total Indebtedness		Variable Rate			% of Total Indebtedness		Total			% of Total Indebtedness
Consolidated mortgage notes payable (2)	$	1,771,996		63.6	%	$	10,052		0.3	%	$	1,782,048		63.9	%
Unconsolidated mortgage notes payable		71,926		2.6	%		111,150		4.0	%		183,076		6.6	%
Exchangeable notes (3)		205,598		7.4	%		—		0.0	%		205,598		7.4	%
Credit Facility		—		0.0	%		445,000		16.0	%		445,000		16.0	%
Senior unsecured term loan		170,000		6.1	%		—		0.0	%		170,000		6.1	%
TOTAL OUTSTANDING DEBT	$	2,219,520		79.7	%	$	566,202		20.3	%	$	2,785,722		100.0	%
AVERAGE INTEREST RATE		5.64	%				1.60	%				4.82	%

(1) Includes variable rate debt swapped to fixed rate debt.

(2) Includes debt premium of $3,372

(3) Includes debt discount of $8,802

		Average Debt Balance
		Mortgage Debt (1)			Credit Facility			Senior Unsecured Term Loan		Exchangeable Notes			Exchangeable Notes Discount			TOTAL
Beginning Balance	3/31/2009	$	1,940,128		$	447,000		$	170,000	$	239,400		$	(10,568	)	$	2,785,960
Credit Facility repayment, net			—			(2,000	)		—		—			—			(2,000	)
Lycoming Mall Financing			28,000			—			—		—			—			28,000
Pitney Road Plaza Financing			4,436			—			—		—			—			4,436
Exchangeable notes discount amortization			—			—			—		—			1,766			1,766
Repurchase of exchangeable notes			—			—			—		(25,000	)		—			(25,000	)
One Cherry Hill Plaza Principal Payment			(2,384	)		—			—		—			—			(2,384	)
Debt amortization (2)			(5,056	)		—			—		—			—			(5,056	)
Ending Balance	6/30/2009	$	1,965,124		$	445,000		$	170,000	$	214,400		$	(8,802	)	$	2,785,722
Weighted Average Balance		$	1,941,246		$	463,253		$	170,000	$	239,400		$	(10,330	)	$	2,803,569

(1) Includes debt premium.

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

	Debt Maturities (1)
Year	Scheduled Amortization		Debt Premium Amortization		Mortgage Balance at Maturity		Credit Facility		Senior Unsecured Term Loan (2)		Exchangeable Notes		Exchangeable Notes Discount Amortization			Total Debt
2009	$	9,973	$	628	$	82,871	$	—	$	—	$	—	$	(1,400	)	$	92,072
2010		21,151		1,175		105,912		445,000		170,000		—		(2,932	)		740,306
2011		21,857		1,153		143,788		—		—		—		(3,115	)		163,683
2012		19,085		416		378,679		—		—		214,400		(1,355	)		611,225
2013		13,512		—		402,723		—		—		—		—			416,235
2014		11,958		—		92,255		—		—		—		—			104,213
2015		10,903		—		270,799		—		—		—		—			281,702
Thereafter		2,819		—		373,467		—		—		—		—			376,286
	$	111,258	$	3,372	$	1,850,494	$	445,000	$	170,000	$	214,400	$	(8,802	)	$	2,785,722

(1) The weighted average period to mortgage maturity is 4.51 years. Excludes debt premium. Includes 100% of debt from consolidated properties and our share of debt from unconsolidated properties, based on our ownership percentage.

(2) The senior unsecured term loan has a one year extension option, if certain conditions are met.

Weighted Average Mortgage Interest Rates
	Interest Rate				Marked to Market Interest Rate (GAAP)
Year	Balance		Interest Rate		Balance		Interest Rate
2009	$	83,023	2.62	%	$	83,023	2.53	%
2010		106,221	5.59	%		106,221	5.59	%
2011		146,903	6.40	%		146,903	6.40	%
2012		400,190	6.05	%		400,190	5.67	%
2013		413,558	5.42	%		413,558	5.42	%
2014		97,752	7.50	%		97,752	7.50	%
Thereafter		714,105	5.66	%		714,105	5.66	%
Total	$	1,961,752	5.58	%	$	1,961,752	5.49	%

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Pennsylvania Real Estate Investment Trust

Debt Schedule as of June 30, 2009

(in thousands)

	Proportionate Share(1)							Interest Rate		Marked to Market Interest Rate (GAAP)		Annual Debt Service		Balance at Maturity
	Mortgage Debt		Debt Premium/(Discount)			Total										Maturity Date
Fixed Rate Mortgage Debt
Red Rose Commons (2)	$	12,386	$	—		$	12,386	7.66	%	7.66	%	$	1,220	$	12,386	May 2009
Valley View Mall		34,487		29			34,516	6.15	%	5.75	%		2,773		34,335	Oct 2009
Springfield Park		1,457		—			1,457	7.79	%	7.79	%		203		1,412	Jan 2010
Creekview Center (3) (4)		19,712		—			19,712	5.56	%	5.56	%		1,104		19,448	June 2010
Christiana Center (3) (5)		45,000		—			45,000	5.87	%	5.87	%		2,642		45,000	June 2011
Paxton Towne Centre (3) (5)		54,000		—			54,000	5.84	%	5.84	%		3,152		54,000	July 2011
The Court at Oxford Valley		17,912		—			17,912	8.02	%	8.02	%		2,319		16,003	July 2011
Metroplex Shopping Center		29,991		—			29,991	7.25	%	7.25	%		2,681		28,785	Oct 2011
Capital City Mall		50,006		2,200			52,206	7.61	%	5.50	%		4,603		47,898	Feb 2012
New River Valley Center (3) (5)		16,202		—			16,202	5.75	%	5.75	%		1,241		15,334	Mar 2012
Beaver Valley Mall		44,344		—			44,344	7.36	%	7.36	%		3,972		42,266	Apr 2012
Pavilion East Associates (3)		4,091		—			4,091	5.90	%	5.90	%		245		3,708	Aug 2012
Cherry Hill Mall		189,214		—			189,214	5.42	%	5.42	%		13,510		177,689	Oct 2012
Cherry Hill Mall Supplemental Loan		55,000		—			55,000	5.51	%	5.51	%		3,030		53,003	Oct 2012
Cumberland Mall Loan #1		41,333		1,143			42,476	6.50	%	5.40	%		3,413		38,782	Nov 2012
Dartmouth Mall		63,244		—			63,244	4.95	%	4.95	%		4,484		57,594	June 2013
Moorestown Mall		58,049		—			58,049	4.95	%	4.95	%		4,115		52,863	June 2013
Jacksonville Mall (3) (5)		56,265		—			56,265	5.83	%	5.83	%		3,277		56,265	Sept 2013
Logan Valley Mall (3) (5)		68,000		—			68,000	5.79	%	5.79	%		3,939		68,000	Sept 2013
Wyoming Valley Mall (3) (5)		65,000		—			65,000	5.85	%	5.85	%		3,803		65,000	Sept 2013
Francis Scott Key Mall (3)		55,000		—			55,000	5.25	%	5.25	%		2,885		55,000	Dec 2013
Viewmont Mall (3)		48,000		—			48,000	5.25	%	5.25	%		2,518		48,000	Dec 2013
Exton Square Mall		69,752		—			69,752	7.50	%	7.50	%		5,873		66,733	Jan 2014
Lycoming Mall		28,000		—			28,000	6.84	%	6.84	%		2,341		25,522	Jul 2014
Magnolia Mall		62,334		—			62,334	5.33	%	5.33	%		4,413		54,965	July 2015
Patrick Henry Mall		95,918		—			95,918	6.34	%	6.34	%		6,133		83,210	Oct 2015
Willow Grove Park		152,114		—			152,114	5.65	%	5.65	%		11,083		132,624	Dec 2015
Valley Mall		88,572		—			88,572	5.49	%	5.49	%		5,014		78,835	Mar 2016
Woodland Mall		156,186		—			156,186	5.58	%	5.58	%		8,397		140,484	Apr 2016
Cumberland Mall Loan #2		2,892		—			2,892	5.00	%	5.00	%		206		—	Feb 2017
The Mall at Prince Georges		150,000		—			150,000	5.51	%	5.51	%		8,269		150,000	June 2017
Whitehall Mall		6,089		—			6,089	7.00	%	7.00	%		574		4,148	Nov 2018
Total Fixed Rate Mortgage Debt		1,840,550		3,372			1,843,922	5.86	%	5.77	%		123,432		1,729,292
Variable Rate Mortgage Debt
Springfield Mall (6)		36,150		—			36,150	1.60	%	1.60	%		1,144		36,150	Dec 2009
Pitney Road Plaza (7)		4,436		—			4,436	5.00	%	5.00	%		222		4,436	May 2010
Lehigh Valley Mall (8)		75,000		—			75,000	0.88	%	0.88	%		1,320		75,000	Aug 2010
One Cherry Hill Plaza (9)		5,616		—			5,616	1.62	%	1.62	%		91		5,616	Aug 2010
Total Variable Rate Mortgage Debt		121,202		—			121,202	1.28	%	1.28	%		2,777		121,202
Total Mortgage Debt	$	1,961,752	$	3,372		$	1,965,124	5.58	%	5.49	%	$	126,208	$	1,850,494
CONSOLIDATED MORTGAGES	$	1,778,676	$	3,372		$	1,782,048	5.78	%	5.69	%	$	116,502	$	1,672,902
UNCONSOLIDATED MORTGAGES		183,076		—			183,076	3.59	%	3.59	%		9,706		177,592
EXCHANGEABLE NOTES		214,400		(8,802	)		205,598	4.00	%	4.00	%		8,576		214,400
CREDIT FACILITY		445,000		—			445,000	1.72	%	1.72	%		7,654		—
SENIOR UNSECURED TERM LOAN (10) (11)		170,000		—			170,000	5.29	%	5.29	%		8,987		170,000
Total	$	2,791,152	$	(5,430	)	$	2,785,722	4.82	%	4.77	%	$	151,425	$	2,234,894

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

(2) The partnership and the partners are currently engaged in discussions with the mortgage holder, following the maturity date of the loan and a default notice.

(3) The mortgage has been swapped to a fixed interest rate presented.

(4) The mortgage has three, one-year renewal options.

(5) The mortgage has two, one-year renewal options.

(6) The mortgage has three, one-year renewal options. The second option was exercised in December 2008 for the period December 2008 to December 2009.

(7) The construction loan can be drawn on up to $10 million.

(8) The mortgage has three, one-year renewal options. The third option was exercised in July 2009 for the period August 2009 to August 2010.

(9) The mortgage has two one-year renewal options. The first option was exercised in June 2009 for the period August 2009 to August 2010.

(10) The interest rate for the senior unsecured Term Loan was swapped to a fixed rate of 5.29%.

(11) The senior unsecured Term Loan has a one year extension option.

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Pennsylvania Real Estate Investment Trust

Selected Debt Ratios ⁽¹⁾

	June 30, 2009
Total Liabilities to Gross Asset Value	64.61	%
Ratio of Total Liabilities to Gross Asset Value is less than or equal to 65%, provided that such ratio may exceed 65% for one period of two consecutive fiscal quarters but may not exceed 70%.
Secured Debt Limitation	43.91	%
Secured debt may not exceed 60% of Gross Asset Value
EBITDA to Interest Expense	1.96
EBITDA may not be less than 1.70 to 1.00
Adjusted EBITDA to Fixed Charges	1.70
Adjusted EBITDA may not be less than 1.50 to 1.00
Minimum Debt Yield	9.97	%
The ratio of EBITDA to total indebtedness may not be less than 9.75%, provided that such ratio may be less than 9.75% for one period of two consecutive fiscal quarters but may not be less than 9.25%.

(1) The Credit Facility dated as of November 20, 2003, as amended, and the Term Loan Agreement dated as of September 3, 2008 contain affirmative and negative covenants customarily found in agreements of these types, as well as requirements that the Company maintain, on a consolidated basis, certain financial ratios. (All capitalized terms used on this page have the meanings ascribed to such terms in the Credit Agreement and the Term Loan Agreement.) In addition to the ratios set forth herein, there are several other ratios under these agreements with which the Company must comply, all of which are described in the Company’s Annual Report on Form 10-K, as amended, in the section entitled “Management’s Discussion and Analysis of Financial Conditions and Results of Operations—Liquidity and Capital Resources.” The Company has filed the agreements, as amended, which set forth the definitions of the terms used in the ratios, with the Securities and Exchange Commission.

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Pennsylvania Real Estate Investment Trust

Shareholder Information

Ten Largest Institutional Shareholders:	Common Shares Held (1)
Vanguard Group, Inc.	3,580,163
Barclays Global Investors, N.A.	3,254,921
State Street Global Advisors (US)	1,508,330
Pacific Heights Asset Management, LLC	900,000
OppenheimerFunds, Inc.	606,512
Veritable, L.P.	551,542
Dimensional Fund Advisors, LP	451,703
Northern Trust Investments, N.A.	337,495
Quantitative Management Associates LLC	317,552
J.P. Morgan Investment Management Inc. (New York)	284,500
TOTAL of Ten Largest Institutional:	11,792,718
TOTAL of all Institutional Holders:	19,973,900
Ten Largest as % of Total Institutional:	59.0	%

⁽¹⁾ Based on 13F and 13G filings as of June 30, 2009 or most recent filings.

Breakdown of Share & Unit Ownership: Shares Held	Most Recent	% of Outstanding		December 31, 2008
Institutional (1)	19,973,900	43.8	%	24,738,712
Retail (2)	21,310,499	46.7	%	12,783,541
Insiders (3)	4,317,448	9.5	%	4,147,196
TOTAL	45,601,847	100.0	%	41,669,449

(1) Based on 13F and 13G filings as of June 30, 2009 or most recent filings.

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

(3) Insider holdings as of April 15, 2009 (Shares and OP Units only). Excludes 143,250 exercisable options. See proxy statement dated April 20, 2009 for more details.

Page 31

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. 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 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)

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, gains on sales of interests in real estate, other expenses and gain on extinguishment of debt.

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 32