Exhibit 99.1

Pennsylvania Real Estate Investment Trust^®

Supplemental Financial and Operating Information

Quarter Ended September 30, 2010

www.preit.com

NYSE: PEI

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

September 30, 2010

Table of Contents

Introduction
Company Information	1
Press Release Announcements	2
Market Capitalization and Capital Resources	3
Operating Results
Statement of Operations-Proportionate Consolidation Method - Three Months Ended September 30, 2010 and September 30, 2009	4
Statement of Operations-Proportionate Consolidation Method - Nine Months Ended September 30, 2010 and September 30, 2009	5
Net Operating Income - Three Months Ended September 30, 2010 and September 30, 2009	6
Net Operating Income - Nine Months Ended September 30, 2010 and September 30, 2009	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 Occupancy 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 Summary	25
Capital Expenditures	26
Debt Analysis	27
Debt Schedule	28
Selected Debt Ratios	29
Shareholder Information	30
Definitions	31

FORWARD-LOOKING STATEMENTS

This Quarterly Supplemental 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: PREIT’s substantial debt and high leverage ratio; constraining leverage, interest and tangible net worth covenants under the 2010 Credit Facility, as well as capital application provisions and limits on PREIT’s ability to pay distributions on our common shares; PREIT’s ability to refinance its existing indebtedness when it matures on favorable terms, or at all; PREIT’s ability to raise capital, including through the issuance of equity or equity-related securities if market conditions are favorable, through joint ventures or other partnerships, through sales of properties, or through other actions; PREIT’s short- and long-term liquidity position; the effects on PREIT of dislocations and liquidity disruptions in the capital and credit markets; the current economic downturn and its effect on employment, consumer confidence and consumer spending; tenant business and solvency and leasing decisions and the value and potential impairment of PREIT’s properties; and PREIT’s ability to maintain and increase property occupancy, sales and rental rates, including at recently redeveloped properties. Additionally, there can be no assurance that PREIT’s actual results will not differ significantly from the estimates set forth in press releases or other disclosures, or that PREIT’s returns on its developments, redevelopments or acquisitions will be consistent with the estimates outlined in press releases or other disclosures. Investors are also directed to consider the risks and uncertainties discussed in documents PREIT has filed with the Securities and Exchange Commission and, in particular, PREIT’s Annual Report on Form 10-K for the year ended December 31, 2009. 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 September 30, 2010, the Company’s 49 properties include 38 shopping malls, eight strip and power centers, and three development properties. 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 33.2 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

Fourth Quarter 2010 February 24, 2011

Research Coverage

Company	Analyst	Phone Number
Bank of America/Merrill Lynch	Craig Schmidt	(646) 855-3640
	Jeffery Spector	(646) 855-1363
	Lindsay Schroll	(646) 855-1829
Barclays Capital	Ross Smotrich	(212) 526-2306
	Ryan Bennett	(212) 526-5309
Citi Investment Research	Michael Bilerman	(212) 816-1383
	Quentin Velleley	(212) 816-6981
Green Street Advisors	Jim Sullivan	(949) 640-8780
	Cedrik Lachance	(949) 640-8780
JP Morgan	Michael W. Mueller	(212) 622-6689
	Sarah King	(212) 622-5670
Keefe, Bruyette, & Woods	Ben Yang	(415) 591-1631
Stifel Nicolaus	Nathan Isbee	(443) 224-1346

Page 1

Pennsylvania Real Estate Investment Trust

Press Release Announcements

Dividends and Distributions:

October 29, 2010 PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.15 per common share.

July 29, 2010 PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.15 per common share.

Acquisitions, dispositions, development and redevelopment activities:

October 28, 2010 - PREIT announced it signed an agreement with the Township of Voorhees to relocate the municipal offices of Voorhees, New Jersey to Voorhees Town Center.

September 30, 2010 - PREIT announced it completed the sale of five power centers to Cedar Shopping Centers, Inc.

August 16, 2010 - PREIT has agreed to sell its interests in up to seven power centers to Cedar Shopping Centers, Inc.

Other activities:

October 14, 2010 - PREIT scheduled its Third Quarter 2010 earnings call for Thursday, November 4, 2010.

August 3, 2010 - PREIT reported its Second Quarter 2010 results.

July 19, 2010 - PREIT scheduled its Second Quarter 2010 earnings call for Tuesday, August 3, 2010.

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 September 30,						Year Ended December 31,
	2010			2009			2009			2008
TRADING INFORMATION
High Price	$	13.90		$	9.13		$	9.13		$	29.70
Low Price	$	10.03		$	3.87		$	2.20		$	2.21
Average Daily Trading Volume		637,795			593,288			824,654			768,718
MARKET CAPITALIZATION (in thousands, except per share amounts)
EQUITY CAPITALIZATION
Common Shares Outstanding		55,376			43,302			44,615			39,468
OP Units Outstanding		2,329			2,329			2,329			2,201
TOTAL Shares and OP Units Outstanding		57,705			45,631			46,944			41,669
Market Price (closing price at end of period)	$	11.86		$	7.61		$	8.46		$	7.45
Equity Market Capitalization - Shares and OP Units	$	684,416		$	347,030		$	397,148		$	310,437
DEBT CAPITALIZATION (1)
Secured Debt Balance (2)	$	2,273,998		$	1,978,191		$	1,956,193		$	1,940,334
Unsecured Debt Balance (3) (4)		136,900			857,400			792,900			811,500
Debt Capitalization		2,410,898			2,835,591			2,749,093			2,751,834
TOTAL MARKET CAPITALIZATION	$	3,095,314		$	3,182,621		$	3,146,241		$	3,062,271
Equity Capitalization/Total Market Capitalization		22.1	%		10.9	%		12.6	%		10.1	%
Debt Capitalization/Total Market Capitalization		77.9	%		89.1	%		87.4	%		89.9	%
Unsecured Debt Balance/Total Debt		5.7	%		30.2	%		28.8	%		29.5	%
DISTRIBUTIONS PER COMMON SHARE
Ordinary Income		(5)		$	0.150		$	0.630		$	2.254
Capital Gain		(5)			—			0.110			—
Return of Capital/Non-Taxable		(5)			—			—			0.026
Distributions per share	$	0.150		$	0.150		$	0.740		$	2.280
Annualized Dividend Yield (6)		5.1	%		7.9	%		8.7	%		30.6	%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	47,694		$	94,443		$	77,147		$	12,711
Revolving Credit Facility		150,000			500,000			500,000			500,000
Amount Outstanding		—			(485,000	)		(486,000	)		(400,000	)
Letters of Credit		(1,534	)		(3,030	)		(3,030	)		(6,428	)
Available Credit Facility (7)		148,466			11,970			10,970			93,572
TOTAL	$	196,160		$	106,413		$	88,117		$	106,283
Shelf Registration	$	831,812		$	1,000,000		$	1,000,000		$	1,000,000

⁽¹⁾ Amounts exclude debt discount on exchangeable notes and debt premium on mortgage loans.

⁽²⁾ The secured debt balance includes $347,200 in Term Loans as of September 30, 2010.

⁽³⁾ The unsecured debt balance includes $170,000 in senior unsecured 2008 Term Loan for the periods ending December 31, 2009, September 30, 2009 and December 31, 2008, and Credit Facility balances of $486,000 for the period ending December 31, 2009, $485,000 for the period ending September 30, 2009, and $400,000 for the period ending December 31, 2008.

⁽⁴⁾ The unsecured debt balance includes exchangeable notes of $136,900 for the periods ending September 30, 2010 and December 31, 2009, $202,400 for the period ending September 30, 2009 and $241,500 for the period ending December 31, 2008.

⁽⁵⁾ Tax status of 2010 dividend payments will be available in January 2011.

⁽⁶⁾ Based on closing share price at the end of the period.

⁽⁷⁾ The available Credit Facility borrowings are subject to covenants that may restrict amounts that can be borrowed.

Page 3

Pennsylvania Real Estate Investment Trust

Statement of Operations - Three Months Ended September 30, 2010

Proportionate Consolidation Method

(in thousands)

	Three months ended September 30, 2010												Three months ended September 30, 2009
	GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total			GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total
REVENUE:
Base rent	$	71,842		$	6,371		$	2,508		$	80,721		$	70,926		$	6,244		$	3,507		$	80,677
Expense reimbursements		33,571			2,503			639			36,713			33,291			2,400			837			36,528
Percentage rent		767			35			—			802			918			39			—			957
Lease termination revenue		370			—			—			370			300			—			—			300
Other real estate revenue		3,301			347			2			3,650			3,270			406			36			3,712
Interest and other income		2,804			—			—			2,804			862			—			—			862
Total revenue		112,655			9,256			3,149			125,060			109,567			9,089			4,380			123,036
EXPENSES:
Operating expenses:
CAM and real estate taxes		(35,683	)		(1,904	)		(592	)		(38,179	)		(34,304	)		(1,950	)		(927	)		(37,181	)
Utilities		(7,587	)		(271	)		(4	)		(7,862	)		(6,769	)		(236	)		(21	)		(7,026	)
Other operating expenses		(6,926	)		(640	)		(137	)		(7,703	)		(6,760	)		(647	)		(26	)		(7,433	)
Total operating expenses		(50,196	)		(2,815	)		(733	)		(53,744	)		(47,833	)		(2,833	)		(974	)		(51,640	)
Depreciation and amortization		(41,673	)		(2,020	)		(1,306	)		(44,999	)		(40,240	)		(1,983	)		(1,567	)		(43,790	)
Other expenses:
General and administrative expenses		(8,958	)		—			—			(8,958	)		(9,583	)		—			—			(9,583	)
Abandoned project costs, income taxes and other expenses		(558	)		—			—			(558	)		(200	)		—			—			(200	)
Total other expenses		(9,516	)		—			—			(9,516	)		(9,783	)		—			—			(9,783	)
Interest expense, net (2)		(36,384	)		(2,566	)		(674	)		(39,624	)		(32,961	)		(1,918	)		(628	)		(35,507	)
Gain on extinguishment of debt		—			—			—			—			4,167			—			—			4,167
Total expenses		(137,769	)		(7,401	)		(2,713	)		(147,883	)		(126,650	)		(6,734	)		(3,169	)		(136,553	)
Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate		(25,114	)		1,855			436			(22,823	)		(17,083	)		2,355			1,211			(13,517	)
Equity in income of partnerships		1,855			(1,855	)		—			—			2,355			(2,355	)		—			—
Loss from continuing operations		(23,259	)		—			436			(22,823	)		(14,728	)		—			1,211			(13,517	)
Discontinued operations:
Operating results from discontinued operations		436			—			(436	)		—			1,211			—			(1,211	)		—
Gains on sales of discontinued operations		19,151			—			—			19,151			3,398			—			—			3,398
Income from discontinued operations		19,587			—			(436	)		19,151			4,609			—			(1,211	)		3,398
Net loss		(3,672	)		—			—			(3,672	)		(10,119	)		—			—			(10,119	)
Less: net loss attributable to noncontrolling interests		87			—			—			87			477			—			—			477
Net loss attributable to PREIT	$	(3,585	)	$	—		$	—		$	(3,585	)	$	(9,642	)	$	—		$	—		$	(9,642	)

⁽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⁾ Net of capitalized interest expense of $504 and $1,287 for the three months ended September 30, 2010 and September 30, 2009, respectively.

Page 4

Pennsylvania Real Estate Investment Trust

Statement of Operations - Nine Months Ended September 30, 2010

Proportionate Consolidation Method

(in thousands)

	Nine months ended September 30, 2010												Nine months ended September 30, 2009
	GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total			GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total
REVENUE:
Base rent	$	214,696		$	19,135		$	7,739		$	241,570		$	211,515		$	18,662		$	10,364		$	240,541
Expense reimbursements		99,980			7,909			1,750			109,639			100,125			7,595			2,512			110,232
Percentage rent		2,292			62			—			2,354			2,378			72			—			2,450
Lease termination revenue		2,551			275			—			2,826			1,636			120			—			1,756
Other real estate revenue		9,762			910			8			10,680			9,982			1,210			93			11,285
Interest and other income		4,130			—			—			4,130			2,092			—			—			2,092
Total revenue		333,411			28,291			9,497			371,199			327,728			27,659			12,969			368,356
EXPENSES:
Operating expenses:
CAM and real estate taxes		(107,183	)		(6,312	)		(1,904	)		(115,399	)		(101,285	)		(6,023	)		(2,821	)		(110,129	)
Utilities		(20,053	)		(688	)		(7	)		(20,748	)		(18,561	)		(660	)		(45	)		(19,266	)
Other operating expenses		(19,063	)		(1,814	)		(196	)		(21,073	)		(19,156	)		(1,941	)		(110	)		(21,207	)
Total operating expenses		(146,299	)		(8,814	)		(2,107	)		(157,220	)		(139,002	)		(8,624	)		(2,976	)		(150,602	)
Depreciation and amortization		(122,677	)		(6,581	)		(3,907	)		(133,165	)		(117,951	)		(6,056	)		(4,732	)		(128,739	)
Other expenses:
General and administrative expenses		(28,261	)		—			—			(28,261	)		(28,436	)		—			—			(28,436	)
Impairment of assets		—			—			—			—			(70	)		—			—			(70	)
Abandoned project costs, income taxes and other expenses		(1,012	)		—			—			(1,012	)		(598	)		—			—			(598	)
Total other expenses		(29,273	)		—			—			(29,273	)		(29,104	)		—			—			(29,104	)
Interest expense, net (2)		(108,588	)		(6,002	)		(1,926	)		(116,516	)		(97,774	)		(5,448	)		(1,572	)		(104,794	)
Gain on extinguishment of debt		—			—			—			—			13,971			—			—			13,971
Total expenses		(406,837	)		(21,397	)		(7,940	)		(436,174	)		(369,860	)		(20,128	)		(9,280	)		(399,268	)
Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate		(73,426	)		6,894			1,557			(64,975	)		(42,132	)		7,531			3,689			(30,912	)
Equity in income of partnerships		6,894			(6,894	)		—			—			7,531			(7,531	)		—			—
Gains on sales of real estate		—			—			—			—			1,654			—			—			1,654
Loss from continuing operations		(66,532	)		—			1,557			(64,975	)		(32,947	)		—			3,689			(29,258	)
Discontinued operations
Operating results from discontinued operations		1,557			—			(1,557	)		—			3,689			—			(3,689	)		—
Gains on sales of discontinued operations		19,151			—						19,151			3,398			—			—			3,398
Income from discontinued operations		20,708			—			(1,557	)		19,151			7,087			—			(3,689	)		3,398
Net loss		(45,824	)		—			—			(45,824	)		(25,860	)		—			—			(25,860	)
Less: net loss attributable to noncontrolling interests		1,928			—			—			1,928			1,215			—			—			1,215
Net loss attributable to PREIT	$	(43,896	)	$	—		$	—		$	(43,896	)	$	(24,645	)	$	—		$	—		$	(24,645	)

⁽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⁾ Net of capitalized interest expense of $1,959 and $4,527 for the nine months ended September 30, 2010 and September 30, 2009, respectively.

Page 5

Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Three Months Ended September 30, 2010 and 2009

(in thousands)

	Three months ended September 30, 2010												Three months ended September 30, 2009
SAME STORE RETAIL/SOLD/OTHER	Same			Sold			Other			Total			Same			Sold			Other			Total
Real estate revenue:
Base rent	$	77,811		$	2,508		$	402		$	80,721		$	76,746		$	3,507		$	424		$	80,677
Expense reimbursements		36,063			639			11			36,713			35,677			837			14			36,528
Percentage rent		802			—			—			802			957			—			—			957
Lease termination revenue		370			—			—			370			300			—			—			300
Other real estate revenue		3,526			2			122			3,650			3,481			36			195			3,712
TOTAL REAL ESTATE REVENUE		118,572			3,149			535			122,256			117,161			4,380			633			122,174
Operating expenses:
CAM and real estate taxes		(37,243	)		(592	)		(344	)		(38,179	)		(35,888	)		(927	)		(366	)		(37,181	)
Utilities		(7,858	)		(4	)		—			(7,862	)		(7,005	)		(21	)		—			(7,026	)
Other operating expenses		(7,504	)		(137	)		(62	)		(7,703	)		(7,291	)		(26	)		(116	)		(7,433	)
TOTAL OPERATING EXPENSES		(52,605	)		(733	)		(406	)		(53,744	)		(50,184	)		(974	)		(482	)		(51,640	)
NET OPERATING INCOME	$	65,967		$	2,416		$	129		$	68,512		$	66,977		$	3,406		$	151		$	70,534

	Three months ended September 30, 2010									Three months ended September 30, 2009
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	71,935		$	5,876		$	77,811		$	71,340		$	5,406		$	76,746
Expense reimbursements		34,834			1,229			36,063			34,478			1,199			35,677
Percentage rent		771			31			802			920			37			957
Lease termination revenue		370			—			370			300			—			300
Other real estate revenue		3,475			51			3,526			3,433			48			3,481
TOTAL REAL ESTATE REVENUE		111,385			7,187			118,572			110,471			6,690			117,161
Operating expenses:
CAM and real estate taxes		(36,083	)		(1,160	)		(37,243	)		(34,639	)		(1,249	)		(35,888	)
Utilities		(7,771	)		(87	)		(7,858	)		(6,932	)		(73	)		(7,005	)
Other operating expenses		(7,317	)		(187	)		(7,504	)		(7,008	)		(283	)		(7,291	)
TOTAL OPERATING EXPENSES		(51,171	)		(1,434	)		(52,605	)		(48,579	)		(1,605	)		(50,184	)
NET OPERATING INCOME	$	60,214		$	5,753		$	65,967		$	61,892		$	5,085		$	66,977

⁽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⁾ - Nine Months Ended September 30, 2010 and 2009

(in thousands)

	Nine Months Ended September 30, 2010												Nine Months Ended September 30, 2009
SAME STORE RETAIL/SOLD/OTHER	Same			Sold			Other			Total			Same			Sold			Other			Total
Real estate revenue:
Base rent	$	232,641		$	7,739		$	1,190		$	241,570		$	228,880		$	10,364		$	1,297		$	240,541
Expense reimbursements		107,851			1,750			38			109,639			107,680			2,512			40			110,232
Percentage rent		2,354			—			—			2,354			2,450			—			—			2,450
Lease termination revenue		2,826			—			—			2,826			1,756			—			—			1,756
Other real estate revenue		10,312			8			360			10,680			10,626			93			566			11,285
TOTAL REAL ESTATE REVENUE		355,984			9,497			1,588			367,069			351,392			12,969			1,903			366,264
Operating expenses:
CAM and real estate taxes		(112,469	)		(1,904	)		(1,026	)		(115,399	)		(106,220	)		(2,821	)		(1,088	)		(110,129	)
Utilities		(20,741	)		(7	)		—			(20,748	)		(19,222	)		(45	)		1			(19,266	)
Other operating expenses		(20,731	)		(196	)		(146	)		(21,073	)		(20,827	)		(110	)		(270	)		(21,207	)
TOTAL OPERATING EXPENSES		(153,941	)		(2,107	)		(1,172	)		(157,220	)		(146,269	)		(2,976	)		(1,357	)		(150,602	)
NET OPERATING INCOME	$	202,043		$	7,390		$	416		$	209,849		$	205,123		$	9,993		$	546		$	215,662

	Nine Months Ended September 30, 2010									Nine Months Ended September 30, 2009
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	215,608		$	17,033		$	232,641		$	212,413		$	16,467		$	228,880
Expense reimbursements		103,878			3,973			107,851			104,017			3,663			107,680
Percentage rent		2,332			22			2,354			2,376			74			2,450
Lease termination revenue		2,826			—			2,826			1,756			—			1,756
Other real estate revenue		10,152			160			10,312			10,459			167			10,626
TOTAL REAL ESTATE REVENUE		334,796			21,188			355,984			331,021			20,371			351,392
Operating expenses:
CAM and real estate taxes		(108,355	)		(4,114	)		(112,469	)		(102,420	)		(3,800	)		(106,220	)
Utilities		(20,552	)		(189	)		(20,741	)		(19,039	)		(183	)		(19,222	)
Other operating expenses		(20,216	)		(515	)		(20,731	)		(20,134	)		(693	)		(20,827	)
TOTAL OPERATING EXPENSES		(149,123	)		(4,818	)		(153,941	)		(141,593	)		(4,676	)		(146,269	)
NET OPERATING INCOME	$	185,673		$	16,370		$	202,043		$	189,428		$	15,695		$	205,123

⁽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 September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Loss from continuing operations	$	(23,259	)	$	(14,728	)	$	(66,532	)	$	(32,947	)
Noncontrolling interest in continuing operations		878			655			2,719			1,408
Dividends on unvested restricted shares		(174	)		(161	)		(441	)		(634	)
Loss from continuing operations used to calculate earnings per share - basic and diluted	$	(22,555	)	$	(14,234	)	$	(64,254	)	$	(32,173	)
Income from discontinued operations	$	19,587		$	4,609		$	20,708		$	7,087
Noncontrolling interest in discontinued operations		(791	)		(178	)		(791	)		(193	)
Income from discontinued operations used to calculate earnings per share - basic and diluted	$	18,796		$	4,431		$	19,917		$	6,894
Basic loss per share
Loss from continuing operations	$	(0.42	)	$	(0.34	)	$	(1.30	)	$	(0.80	)
Income from discontinued operations		0.35			0.11			0.40			0.17
	$	(0.07	)	$	(0.23	)	$	(0.90	)	$	(0.63	)
Diluted loss per share
Loss from continuing operations	$	(0.42	)	$	(0.34	)	$	(1.30	)	$	(0.80	)
Income from discontinued operations		0.35			0.11			0.40			0.17
	$	(0.07	)	$	(0.23	)	$	(0.90	)	$	(0.63	)
Weighted average of common shares outstanding		55,351			43,277			50,502			41,038
Weighted average of unvested restricted shares		(1,151	)		(1,082	)		(1,067	)		(894	)
Weighted average shares outstanding - basic		54,200			42,195			49,435			40,144
Weighted average effect of common share equivalents (1)		—			—			—			—
Total weighted average shares outstanding - diluted		54,200			42,195			49,435			40,144

⁽¹⁾ The Company had net losses from continuing operations for all periods presented. Therefore, the effect of common share equivalents of 527 and 408 for nine months ended September 30, 2010 and 2009, respectively, are excluded from the calculation of diluted loss per share because they 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 September 30,						Nine Months Ended September 30,						Year Ended December 31,
	2010			2009			2010			2009			2009
FUNDS FROM OPERATIONS (FFO)
Net loss	$	(3,672	)	$	(10,119	)	$	(45,824	)	$	(25,860	)	$	(90,091	)
Gains on sales of discontinued operations		(19,151	)		(3,398	)		(19,151	)		(3,398	)		(9,503	)
Gains on sales of interests in real estate		—			—			—			(923	)		(923	)
Depreciation and amortization: (1)
Wholly owned and consolidated partnerships		41,331			39,758			121,518			116,312			164,284
Unconsolidated partnerships		2,020			1,983			6,581			6,056			8,144
Discontinued operations		1,306			1,567			3,907			4,732			1,176
FFO	$	21,834		$	29,791		$	67,031		$	96,919		$	73,087
Accelerated amortization of deferred financing costs		1,394			—			3,652			—			—
Impairment of assets		—			—			—			70			74,254
Gain on extinguishment of debt		—			(4,167	)		—			(13,971	)		(27,047	)
FFO AS ADJUSTED	$	23,228		$	25,624		$	70,683		$	83,018		$	120,294
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	21,834		$	29,791		$	67,031		$	96,919		$	73,087
Adjustments:
Straight line rent		(315	)		(465	)		(1,194	)		(1,228	)		(1,276	)
Recurring capital expenditures		(5,852	)		(4,671	)		(7,633	)		(8,463	)		(16,495	)
Tenant allowances		(5,520	)		(1,830	)		(10,890	)		(7,561	)		(11,312	)
Capitalized leasing costs		(982	)		(999	)		(3,123	)		(3,149	)		(4,341	)
Amortization of mortgage loan premium		(298	)		(333	)		(885	)		(988	)		(1,283	)
Amortization of above- and below-market lease intangibles		(3	)		16			(15	)		(504	)		(394	)
Amortization of exchangeable notes debt discount		467			682			1,382			2,175			2,817
Impairment of assets		—			—			—			70			74,254
Gain on extinguishment of debt		—			(4,167	)		—			(13,971	)		(27,047	)
FAD	$	9,331		$	18,024		$	44,673		$	63,300		$	88,010
Weighted average of common shares outstanding		54,200			42,195			49,435			40,144			40,953
Weighted average of OP Units outstanding		2,329			2,329			2,329			2,248			2,268
Weighted average effect of common share equivalents		528			—			407			—			12
Total weighted average shares outstanding, including OP Units		57,057			44,524			52,171			42,392			43,233
Net loss per diluted share	$	(0.07	)	$	(0.23	)	$	(0.90	)	$	(0.63	)	$	(2.11	)
FFO per diluted share	$	0.38		$	0.67		$	1.28		$	2.29		$	1.69
FFO per diluted share as adjusted	$	0.41		$	0.58		$	1.35		$	1.96		$	2.78
FAD per diluted share	$	0.16		$	0.40		$	0.86		$	1.49		$	2.04
Dividend per common share	$	0.15		$	0.15		$	0.45		$	0.59		$	0.74
PAYOUT RATIOS
Payout Ratio of FFO		87.1	%(2)											43.8	%
Payout Ratio of FFO as adjusted		27.5	%(2)											26.6	%
Payout Ratio of FAD		42.9	%(2)											36.4	%

⁽¹⁾ Excludes depreciation of non-real estate assets and amortization of deferred financing costs.

⁽²⁾ Twelve months ended September 30, 2010.

Page 9

Pennsylvania Real Estate Investment Trust

2010 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		13		37,635	$	26.45	$	25.58	$	(0.87	)		-3.3	%	$	0.67
2nd Quarter		25		73,166		22.34		24.04		1.70			7.6	%		1.90
3rd Quarter		26		70,644		27.19		24.19		(3.00	)		-11.0	%		2.09
Total/Average		64		181,445	$	25.08	$	24.42	$	(0.66	)		-2.6	%	$	1.72
New Leases - Previously Vacant Space: (2)
1st Quarter		14		83,459		N/A	$	17.42	$	17.42			N/A		$	0.24
2nd Quarter		36		156,027		N/A		16.64		16.64			N/A			1.13
3rd Quarter		58		238,159		N/A		17.59		17.59			N/A			2.86
Total/Average		108		477,645		N/A	$	17.25	$	17.25			N/A		$	1.84
Renewal: (3)
1st Quarter		132		489,130	$	22.09	$	20.56	$	(1.53	)		-6.9	%	$	0.02
2nd Quarter		97		386,648		20.10		19.79		(0.31	)		-1.5	%		0.24
3rd Quarter		86		322,240		23.43		22.58		(0.85	)		-3.6	%		0.14
Total/Average		315		1,198,018	$	21.81	$	20.86	$	(0.95	)		-4.4	%	$	0.12
Anchor Renewal:
1st Quarter		6		398,532	$	3.12	$	3.08	$	(0.04	)		-1.3	%	$	—
2nd Quarter		7		789,883		2.27		2.27		—			0.0	%		—
3rd Quarter		6		778,332		2.51		2.51		—			0.0	%		—
Total/Average		19		1,966,747	$	2.54	$	2.53	$	(0.01	)		-0.3	%	$	—

⁽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

	September 30, 2010								September 30, 2009								Change
	Avg Base Rent		Occupancy						Avg Base Rent		Occupancy						Avg Base Rent			Occupancy
			Total			Non-Anchor					Total			Non-Anchor						Total			Non-Anchor
Enclosed Malls weighted average (1)	$	32.70		89.5	%		84.5	%	$	32.51		88.9	%		83.8	%		0.6	%		0.6	%		0.7	%
Strip and Power Centers weighted average	$	16.28		95.7	%		93.8	%	$	16.42		89.1	%		84.9	%		-0.9	%		6.6	%		8.9	%
Retail Portfolio weighted average	$	28.94		90.2	%		85.7	%	$	29.32		88.9	%		84.0	%		-1.3	%		1.3	%		1.7	%
Consolidated Properties	$	30.69		89.6	%		84.4	%	$	30.90		88.7	%		83.4	%		-0.7	%		0.9	%		1.0	%
Unconsolidated Properties	$	23.27		94.8	%		93.1	%	$	23.63		90.8	%		87.4	%		-1.5	%		4.0	%		5.7	%
Same Properties	$	28.94		90.2	%		85.7	%	$	29.32		88.9	%		84.0	%		-1.3	%		1.3	%		1.7	%

⁽¹⁾ Average base rent for tenants that lease individual spaces of 10,000 square feet or less and pay fixed rent. Average base rent for tenants greater than 10,000 square feet that pay fixed rent was $14.50/sq ft as of September 30, 2010 and $14.53/sq ft as of September 30, 2009.

Page 11

Pennsylvania Real Estate Investment Trust

Mall Sales and Rent Per Square Foot

	% of Current Quarter Mall NOI			September 30, 2010							September 30, 2009							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		27.8	%
Cherry Hill Mall				$	46.45	$	536		13.7	%	$	47.18	$	419		16.2	%		-1.6	%		27.9	%		-2.5	%
Lehigh Valley Mall					44.70		530		12.3	%		43.75		466		13.6	%		2.2	%		13.7	%		-1.3	%
Jacksonville Mall					32.58		501		10.0	%		31.84		484		9.7	%		2.3	%		3.5	%		0.3	%
Woodland Mall					43.95		483		13.0	%		43.73		445		15.4	%		0.5	%		8.5	%		-2.4	%
Patrick Henry Mall					39.40		402		13.9	%		37.43		422		12.9	%		5.3	%		-4.7	%		1.0	%
Sales per square foot between $350 - $400		27.0	%
Willow Grove Park (3)					43.38		389		16.7	%		42.79		389		15.8	%		1.4	%		0.0	%		0.9	%
Moorestown Mall					36.67		375		15.1	%		36.48		403		14.6	%		0.5	%		-6.9	%		0.5	%
Viewmont Mall					29.74		366		13.1	%		30.42		356		12.9	%		-2.2	%		2.8	%		0.2	%
The Mall at Prince Georges					36.87		363		15.4	%		35.76		377		15.2	%		3.1	%		-3.7	%		0.2	%
Wyoming Valley Mall					31.06		359		13.2	%		31.04		349		12.8	%		0.0	%		2.9	%		0.4	%
Valley View Mall					30.39		359		11.8	%		31.44		353		12.2	%		-3.4	%		1.7	%		-0.4	%
The Gallery at Market East (3)					38.09		353		13.7	%		37.62		351		14.3	%		1.3	%		0.6	%		-0.6	%
Dartmouth Mall					30.68		352		12.4	%		29.62		340		12.3	%		3.6	%		3.5	%		0.1	%
Sales per square foot between $300 - $349		24.9	%
Capital City Mall					33.46		348		11.8	%		32.70		354		11.7	%		2.3	%		-1.7	%		0.1	%
Springfield Mall					34.32		345		15.2	%		31.30		326		15.4	%		9.6	%		5.8	%		-0.2	%
Francis Scott Key Mall					27.33		330		11.7	%		26.78		322		11.9	%		2.1	%		2.5	%		-0.2	%
Plymouth Meeting Mall					31.75		320		10.9	%		34.52		246		13.1	%		-8.0	%		30.1	%		-2.2	%
Exton Square Mall					37.84		317		14.8	%		38.84		318		15.7	%		-2.6	%		-0.3	%		-0.9	%
Magnolia Mall					26.91		311		13.2	%		25.69		301		13.5	%		4.8	%		3.3	%		-0.3	%
Valley Mall					26.43		308		12.1	%		25.31		312		13.0	%		4.4	%		-1.3	%		-0.9	%
Logan Valley Mall					26.28		307		11.7	%		26.23		296		12.4	%		0.2	%		3.7	%		-0.7	%
Cumberland Mall					28.47		306		13.7	%		27.02		297		14.2	%		5.4	%		3.0	%		-0.5	%
Crossroads Mall					20.86		305		9.7	%		22.43		306		9.1	%		-7.0	%		-0.3	%		0.6	%
Sales per square foot under $300		20.3	%
Palmer Park Mall					25.57		289		11.0	%		25.66		284		11.9	%		-0.4	%		1.8	%		-0.9	%
Uniontown Mall					22.60		280		11.0	%		23.03		279		11.6	%		-1.9	%		0.4	%		-0.6	%
Wiregrass Commons Mall					27.11		277		11.7	%		26.38		278		11.1	%		2.8	%		-0.4	%		0.6	%
Nittany Mall					22.33		273		11.3	%		23.19		288		10.9	%		-3.7	%		-5.2	%		0.4	%
Gadsden Mall					21.59		273		8.9	%		25.06		259		11.7	%		-13.9	%		5.4	%		-2.8	%
North Hanover Mall					28.06		270		12.6	%		28.03		274		12.8	%		0.1	%		-1.5	%		-0.2	%
New River Valley Mall					24.15		269		10.5	%		25.09		253		9.6	%		-3.8	%		6.3	%		0.9	%
Lycoming Mall					21.21		252		10.1	%		20.89		238		12.2	%		1.6	%		5.9	%		-2.1	%
Beaver Valley Mall					22.43		251		13.6	%		23.68		252		14.8	%		-5.3	%		-0.4	%		-1.2	%
Chambersburg Mall					25.51		241		9.5	%		28.82		225		11.0	%		-11.5	%		7.1	%		-1.5	%
Washington Crown Center					20.86		235		11.7	%		21.98		244		12.4	%		-5.1	%		-3.7	%		-0.7	%
Orlando Fashion Square					33.20		232		17.7	%		36.50		239		17.8	%		-9.0	%		-2.9	%		-0.1	%
South Mall					23.42		227		12.4	%		24.64		254		12.7	%		-5.0	%		-10.6	%		-0.3	%
Phillipsburg Mall					25.05		219		12.0	%		26.06		231		14.3	%		-3.9	%		-5.2	%		-2.3	%
Voorhees Town Center					34.04		205		12.4	%		32.46		206		12.0	%		4.9	%		-0.5	%		0.4	%
Enclosed Malls weighted average				$	32.70	$	348		12.9	%	$	32.51	$	335		13.5	%		0.6	%		3.9	%		-0.6	%
Consolidated Properties				$	31.89	$	336		12.9	%	$	31.86	$	326		13.4	%		0.1	%		3.1	%		-0.5	%
Unconsolidated Properties				$	41.29	$	468		13.0	%	$	39.52	$	419		14.1	%		4.5	%		11.7	%		-1.1	%
Same Properties				$	32.70	$	348		12.9	%	$	32.51	$	335		13.5	%		0.6	%		3.9	%		-0.6	%

⁽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 September 30, 2010 and 2009, respectively.

Page 12

Pennsylvania Real Estate Investment Trust

Mall Occupancy - Owned GLA

	September 30, 2010						September 30, 2009						Change
	Total			Non-Anchor			Total			Non-Anchor			Total			Non-Anchor
Beaver Valley Mall		89.6	%		77.6	%		88.0	%		74.3	%		1.6	%		3.3	%
Capital City Mall		96.9	%		94.7	%		98.2	%		96.9	%		-1.3	%		-2.2	%
Chambersburg Mall		81.5	%		60.4	%		82.3	%		62.2	%		-0.8	%		-1.8	%
Cherry Hill Mall		91.4	%		89.7	%		94.0	%		92.7	%		-2.6	%		-3.0	%
Crossroads Mall		89.7	%		76.2	%		84.3	%		63.9	%		5.4	%		12.3	%
Cumberland Mall		91.9	%		86.5	%		92.2	%		91.2	%		-0.3	%		-4.7	%
Dartmouth Mall		97.0	%		95.0	%		92.1	%		86.9	%		4.9	%		8.1	%
Exton Square Mall		88.5	%		74.8	%		90.7	%		79.7	%		-2.2	%		-4.9	%
Francis Scott Key Mall		97.8	%		95.8	%		94.5	%		89.4	%		3.3	%		6.4	%
Gadsden Mall		92.4	%		81.0	%		90.2	%		75.8	%		2.2	%		5.2	%
The Gallery at Market East (1)		60.6	%		75.5	%		60.5	%		75.3	%		0.1	%		0.2	%
Jacksonville Mall		99.1	%		98.3	%		97.4	%		94.8	%		1.7	%		3.5	%
Lehigh Valley Mall		96.9	%		95.8	%		93.7	%		91.4	%		3.2	%		4.4	%
Logan Valley Mall		94.0	%		85.6	%		95.1	%		88.2	%		-1.1	%		-2.6	%
Lycoming Mall		95.4	%		91.4	%		95.7	%		91.9	%		-0.3	%		-0.5	%
Magnolia Mall		95.3	%		89.3	%		96.1	%		91.1	%		-0.8	%		-1.8	%
Moorestown Mall		88.7	%		74.7	%		88.8	%		74.9	%		-0.1	%		-0.2	%
New River Valley Mall		95.1	%		91.8	%		96.1	%		93.6	%		-1.0	%		-1.8	%
Nittany Mall		92.5	%		84.9	%		91.5	%		82.7	%		1.0	%		2.2	%
North Hanover Mall		90.0	%		76.1	%		88.5	%		72.6	%		1.5	%		3.5	%
Orlando Fashion Square		85.7	%		69.6	%		86.3	%		70.9	%		-0.6	%		-1.3	%
Palmer Park Mall		94.7	%		83.1	%		95.5	%		85.6	%		-0.8	%		-2.5	%
Patrick Henry Mall		96.9	%		94.0	%		98.0	%		96.2	%		-1.1	%		-2.2	%
Phillipsburg Mall		90.0	%		77.0	%		90.4	%		77.9	%		-0.4	%		-0.9	%
Plymouth Meeting Mall		84.0	%		75.7	%		82.2	%		75.3	%		1.8	%		0.4	%
The Mall at Prince Georges		94.4	%		88.1	%		95.8	%		91.1	%		-1.4	%		-3.0	%
South Mall		89.6	%		84.1	%		78.2	%		81.9	%		11.4	%		2.2	%
Springfield Mall		83.8	%		83.8	%		86.1	%		86.1	%		-2.3	%		-2.3	%
Uniontown Mall		92.5	%		81.0	%		91.5	%		78.5	%		1.0	%		2.5	%
Valley Mall		96.2	%		93.5	%		97.1	%		95.0	%		-0.9	%		-1.5	%
Valley View Mall		91.6	%		88.3	%		91.9	%		88.8	%		-0.3	%		-0.5	%
Viewmont Mall		99.3	%		98.1	%		97.8	%		94.3	%		1.5	%		3.8	%
Voorhees Town Center		62.1	%		61.5	%		61.9	%		61.2	%		0.2	%		0.3	%
Washington Crown Center		83.4	%		69.3	%		83.6	%		69.7	%		-0.2	%		-0.4	%
Willow Grove Park (2)		69.6	%		91.3	%		69.7	%		93.8	%		-0.1	%		-2.5	%
Wiregrass Commons Mall		86.9	%		81.0	%		85.0	%		78.4	%		1.9	%		2.6	%
Woodland Mall		88.3	%		88.3	%		85.8	%		85.8	%		2.5	%		2.5	%
Wyoming Valley Mall		96.3	%		89.5	%		92.0	%		77.3	%		4.3	%		12.2	%
Enclosed Malls weighted average (3)		89.5	%		84.5	%		88.9	%		83.8	%		0.6	%		0.7	%
Consolidated Properties		89.3	%		83.9	%		88.7	%		83.4	%		0.6	%		0.5	%
Unconsolidated Properties		94.0	%		92.4	%		92.0	%		89.9	%		2.0	%		2.5	%
Same Properties		89.5	%		84.5	%		88.9	%		83.8	%		0.6	%		0.7	%

⁽¹⁾ The total occupancy percentage for The Gallery at Market East includes 328,390 sf of the former Strawbridge's store that is currently vacant, pending redevelopment. This vacant department store represents 30.3% and 30.4% of the owned mall GLA as of September 30, 2010 and September 30, 2009, respectively.

⁽²⁾ The total occupancy percentage for Willow Grove Park includes the former Strawbridge's store that is currently vacant. This vacant department store represents 26.6% and 26.2% of the owned mall GLA as of September 30, 2010 and September 30, 2009, respectively.

⁽³⁾ Including all tenants occupying space under an agreement with an initial term of less than one year, total enclosed mall occupancy is 90.3% and 89.7%, and occupancy excluding anchors is 86.0% and 86.4% for the periods ending June 30, 2010 and June 30, 2009, respectively.

Page 13

Pennsylvania Real Estate Investment Trust

Strip and Power Center Rent Per Square Foot and Occupancy Percentages

	September 30, 2010								September 30, 2009								Change
	Avg Base  Rent		Occupancy						Avg Base  Rent		Occupancy						Avg Base  Rent			Occupancy
			Total			Non-Anchor					Total			Non-Anchor						Total			Non-Anchor
Christiana Center	$	20.10		98.8	%		96.8	%	$	21.94		88.1	%		67.7	%		-8.4	%		10.7	%		29.1	%
The Commons at Magnolia		14.61		84.9	%		81.1	%		11.95		66.4	%		88.9	%		22.3	%		18.5	%		-7.8	%
Metroplex Shopping Center		19.20		100.0	%		100.0	%		19.10		100.0	%		100.0	%		0.5	%		0.0	%		0.0	%
The Court at Oxford Valley		15.60		100.0	%		100.0	%		16.41		91.3	%		88.1	%		-4.9	%		8.7	%		11.9	%
Paxton Towne Centre		15.78		98.2	%		97.3	%		16.04		90.8	%		86.1	%		-1.6	%		7.4	%		11.2	%
Red Rose Commons		13.99		84.8	%		84.8	%		14.16		72.5	%		72.5	%		-1.2	%		12.3	%		12.3	%
Springfield Park		20.90		98.2	%		94.9	%		21.22		100.0	%		100.0	%		-1.5	%		-1.8	%		-5.1	%
Whitehall Mall		12.72		91.6	%		82.3	%		11.29		86.8	%		72.0	%		12.7	%		4.8	%		10.3	%
Weighted Average	$	16.28		95.7	%		93.8	%	$	16.42		89.1	%		84.9	%		-0.9	%		6.6	%		8.9	%
Consolidated Properties	$	16.62		96.8	%		94.4	%	$	16.67		86.8	%		82.0	%		-0.3	%		10.0	%		12.4	%
Unconsolidated Properties	$	16.16		95.3	%		93.6	%	$	16.34		90.1	%		85.9	%		-1.1	%		5.2	%		7.7	%
Same Properties	$	16.28		95.7	%		93.8	%	$	16.42		89.1	%		84.9	%		-0.9	%		6.6	%		8.9	%

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 Locations		GLA		Number of Locations		GLA		Total Number of Locations		Total GLA		Annualized Minimum Rent		PREIT’s share of Annualized Minimum Rent (3)		Percent of PREIT’s Total Retail Minimum Rent
Gap, Inc.		45		570,111		5		51,516		50		621,627	$	12,467	$	11,414		4.05	%
JCPenney Company, Inc.		24		2,369,736		6		824,327		30		3,194,063		7,526		7,526		2.67	%
Foot Locker, Inc.		62		326,954		11		34,347		73		361,301		7,959		7,507		2.66	%
Limited Brands, Inc.		59		282,522		13		41,196		72		323,718		7,626		7,180		2.55	%
American Eagle Outfitters, Inc.		40		218,381		2		8,840		42		227,221		6,756		6,454		2.29	%
Zale Corporation		76		59,844		0		—		76		59,844		5,622		5,318		1.89	%
Sears Holding Corporation		24		2,796,396		5		880,777		29		3,677,173		5,445		5,302		1.88	%
Signet Jewelers Limited		39		59,732		0		—		39		59,732		4,570		4,415		1.57	%
Dick’s Sporting Goods, Inc.		8		371,675		1		50,484		9		422,159		4,835		4,041		1.43	%
Luxottica Group S.p.A.		49		116,626		2		8,082		51		124,708		4,164		3,866		1.37	%
Golden Gate Capital (4)		14		130,715		4		24,742		18		155,457		3,974		3,584		1.27	%
Abercrombie & Fitch Co.		20		136,727		0		—		20		136,727		3,961		3,579		1.27	%
Genesco, Inc.		57		73,548		3		3,543		60		77,091		3,332		3,193		1.13	%
Commonwealth of Pennsylvania		2		229,244		0		—		2		229,244		3,085		3,085		1.09	%
Aeropostale, Inc.		33		115,112		3		10,619		36		125,731		3,276		3,060		1.09	%
Hallmark Cards, Inc.		36		142,377		7		30,813		43		173,190		3,210		3,036		1.08	%
Barnes & Noble, Inc.		9		271,086		0		—		9		271,086		4,079		3,010		1.07	%
Pacific Sunwear, Inc.		27		100,523		6		20,857		33		121,380		3,012		2,859		1.01	%
Burlington Coat Factory Warehouse Corp.		6		537,986		0		—		6		537,986		2,826		2,826		1.00	%
Regis Corporation		76		92,606		2		3,006		78		95,612		2,826		2,737		0.97	%
Total Top 20 Tenants		706		9,001,901		70		1,993,149		776		10,995,050	$	100,551	$	93,992		33.35	%
Total Retail Leases										3,100					$	281,823		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 one J. Jill store.

Page 15

Pennsylvania Real Estate Investment Trust

Lease Expirations as of September 30, 2010

(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			Minimum Rent in Expiring Year		PREIT’s Share of Minimum Rent in Expiring Year (2)		Percent of PREIT’s Total			Average Expiring Minimum Rent psf
Holdover		113		275,887		2.3	%	$	7,396	$	7,049		2.6	%	$	26.81
2010		97		310,066		2.6	%		6,606		6,308		2.3	%		21.31
2011		617		1,927,327		16.0	%		47,813		43,817		16.0	%		24.81
2012		477		1,625,809		13.5	%		39,504		36,636		13.4	%		24.30
2013		325		1,079,291		9.0	%		25,055		23,393		8.5	%		23.21
2014		237		842,797		7.0	%		21,161		19,293		7.0	%		25.11
2015		229		1,142,919		9.5	%		26,185		23,317		8.5	%		22.91
2016		229		964,045		8.0	%		27,966		25,334		9.3	%		29.01
2017		181		768,575		6.4	%		21,246		19,472		7.1	%		27.64
2018		185		927,797		7.7	%		24,911		22,970		8.4	%		26.85
2019		142		588,671		4.9	%		18,864		17,970		6.6	%		32.05
Thereafter		158		1,558,502		13.1	%		30,471		28,270		10.3	%		19.55
Total/Average		2,990		12,011,686		100.0	%	$	297,178	$	273,829		100.0	%	$	24.74
Anchors(1)
			Gross Leasable Area					Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring (3)		Expiring GLA		Percent of Total			Minimum Rent in Expiring Year		PREIT’s Share of Minimum Rent in Expiring Year (2)		Percent of PREIT’s Total			Average Expiring Minimum Rent psf
2011		13		1,040,717		9.2	%	$	3,374	$	2,724		6.9	%	$	3.24
2012		7		859,686		7.6	%		1,825		1,788		4.5	%		2.12
2013		14		1,135,570		10.1	%		4,593		4,593		11.7	%		4.04
2014		15		1,551,546		13.8	%		4,249		3,787		9.6	%		2.74
2015		19		1,746,117		15.5	%		5,187		5,187		13.2	%		2.97
2016		9		1,127,189		10.0	%		2,539		2,539		6.4	%		2.25
2017		4		381,158		3.4	%		2,058		1,695		4.3	%		5.40
2018		6		777,965		6.9	%		4,078		4,078		10.4	%		5.24
2019		8		817,875		7.3	%		2,444		2,444		6.2	%		2.99
Thereafter		15		1,841,984		16.3	%		11,209		10,545		26.8	%		6.09
Total/Average		110		11,279,807		100.0	%	$	41,556	$	39,380		100.0	%	$	3.68

⁽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 Occupancy Summary as of September 30, 2010

	Owned GLA
	Occupied						Vacant
	Anchor		Non-Anchor				Anchor		Non-Anchor
			Large Format  (1)		Small Shop  (2)						GLA Not Owned		Total GLA
Malls
Beaver Valley Mall		511,267		138,661		207,579		—		99,781		204,770		1,162,058
Capital City Mall		204,301		63,586		205,639		—		15,213		120,000		608,739
Chambersburg Mall		241,690		19,651		108,738		—		84,258		—		454,337
Cherry Hill Mall (3)		138,000		214,860		389,845		—		69,753		478,885		1,291,343
Crossroads Mall		254,211		12,231		135,218		—		46,174		—		447,834
Cumberland Mall		264,348		212,538		136,832		—		54,397		273,230		941,345
Dartmouth Mall		208,460		142,274		164,177		—		16,029		140,000		670,940
Exton Square Mall		440,301		26,617		249,202		—		93,125		277,468		1,086,713
Francis Scott Key Mall		269,708		93,084		191,572		—		12,529		139,333		706,226
Gadsden Mall		300,960		65,746		98,398		—		38,522		—		503,626
The Gallery at Market East		350,115		84,970		221,942		328,390		99,350		—		1,084,767
Jacksonville Mall		242,115		98,693		143,649		—		4,252		—		488,709
Lehigh Valley Mall		212,000		171,800		378,015		—		24,238		371,986		1,158,039
Logan Valley Mall		454,387		43,943		234,939		—		47,027		—		780,296
Lycoming Mall		333,413		182,268		167,148		—		33,084		120,000		835,913
Magnolia Mall		343,118		74,000		169,265		—		29,037		—		615,420
Moorestown Mall		408,356		98,682		147,535		—		83,377		321,200		1,059,150
New River Valley Mall		175,306		122,239		121,797		—		21,721		—		441,063
Nittany Mall		221,462		12,500		170,461		—		32,622		95,000		532,045
North Hanover Mall		206,792		21,047		92,348		—		35,576		—		355,763
Orlando Fashion Square		491,999		121,389		183,628		—		133,093		155,576		1,085,685
Palmer Park Mall		314,235		—		119,264		—		24,203		—		457,702
Patrick Henry Mall		279,619		37,758		239,326		—		17,627		140,000		714,330
Phillipsburg Mall		326,552		42,021		152,106		—		58,031		—		578,710
Plymouth Meeting Mall (4)		253,584		178,291		190,094		—		118,521		214,635		955,125
The Mall at Prince Georges		479,619		102,742		278,276		—		51,505		—		912,142
South Mall		139,691		131,434		91,902		—		42,172		—		405,199
Springfield Mall		—		—		186,111		—		35,964		387,899		609,974
Uniontown Mall		421,378		67,996		156,670		—		52,541		—		698,585
Valley Mall		280,549		125,334		241,181		—		25,679		243,400		916,143
Valley View Mall		96,357		74,148		144,102		—		29,010		254,596		598,213
Viewmont Mall		386,262		82,893		153,342		—		4,697		120,000		747,194
Voorhees Town Center (5)		4,404		67,478		102,253		—		106,370		396,783		677,288
Washington Crown Center		245,401		54,073		147,316		—		89,233		140,095		676,118
Willow Grove Park		225,000		37,260		279,433		206,834		30,061		413,121		1,191,709
Wiregrass Commons		94,686		10,345		160,622		—		40,142		332,152		637,947
Woodland Mall		—		120,959		261,698		—		50,757		725,187		1,158,601
Wyoming Valley Mall		592,110		90,851		194,760		—		33,579		—		911,300
Total Malls (38 properties)		10,411,756		3,244,362		7,016,383		535,224		1,883,250		6,065,316		29,156,291
Strip and Power Centers
Christiana Center		190,814		68,132		39,888		—		3,600		—		302,434
The Commons at Magnolia		20,631		28,618		39,302		—		15,781		126,200		230,532
Metroplex Shopping Center		67,185		362,593		47,683		—		—		300,729		778,190
The Court at Oxford Valley		59,620		361,129		36,154		—		—		247,623		704,526
Paxton Towne Centre		151,627		221,425		63,380		—		8,000		273,058		717,490
Red Rose Commons		—		208,212		15,206		—		40,034		199,590		463,042
Springfield Park		83,539		20,500		22,443		—		2,329		145,669		274,480
Whitehall Mall		294,635		160,865		55,411		—		46,590		—		557,501
Total Strip and Power Centers (8 properties)		868,051		1,431,474		319,467		—		116,334		1,292,869		4,028,195
CONSOLIDATED PROPERTIES		10,562,828		3,390,737		6,594,827		535,224		1,850,429		5,704,689		28,638,734
UNCONSOLIDATED PROPERTIES		716,979		1,285,099		741,023		—		149,155		1,653,496		4,545,752
TOTAL PROPERTIES		11,279,807		4,675,836		7,335,850		535,224		1,999,584		7,358,185		33,184,486

⁽¹⁾ Includes tenants greater than 10,000 square feet.

⁽²⁾ Includes tenants less than 10,000 square feet.

⁽³⁾ Additional 24,588 sf has been entitled but not yet built.

⁽⁴⁾ Additional 14,316 sf has been entitled but not yet built.

⁽⁵⁾ Additional 52,431 sf has been built but not commissioned, and 128,514 sf has been entitled but not yet built.

Page 17

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2010

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	11/30/15 (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 2/9/15
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) 2/28/25
Crossroads Mall (2) Beckley, WV	100%	2003	1981	Belk JCPenney Sears	11/5/14 12/31/11 3/31/16
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 9/30/16 (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 Commonwealth of Pennsylvania	2/28/32 6/30/29
Jacksonville Mall Jacksonville, NC	100%	2003	1981/2008	Barnes & Noble Belk JCPenney Sears	5/31/18 8/21/11 8/31/15 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 10/31/15 (1) 7/31/13
Magnolia Mall Florence, SC	100%	1997	1979/2007	Barnes & Noble Belk Best Buy Dick’s Sporting Goods JCPenney Sears	9/30/17 1/31/16 1/31/13 1/31/18 3/31/12 10/16/14

Page 18

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2010 (continued)

Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
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	4/19/14 1/31/17 3/31/13 4/30/22 8/2/13
Nittany Mall State College, PA	100%	2003	1968/1990	Bon-Ton JCPenney Macy’s Sears	1/31/13 7/31/15 (1) 8/28/15
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	1/31/21 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 3/31/13 1/31/25 4/30/14
Plymouth Meeting Mall (2) Plymouth Meeting, PA	100%	2003	1966/2009	AMC Theater Boscov’s Macy’s Whole Foods	12/31/18 10/31/16 (1) 11/30/29
The Mall at Prince Georges Hyattsville, MD	100%	1998	1959/2004	JCPenney Macy’s Marshalls Ross Dress for Less Target	7/31/16 10/31/18 9/30/16 1/31/18 1/31/15
South Mall Allentown, PA	100%	2003	1975/1992	Bon-Ton Stein Mart	1/30/16 10/31/11
Springfield Mall Springfield, PA	50%	2005	1974/1997	Macy’s Target	(1) (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 10/31/15 3/31/15 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) 7/31/15 (1) (1)
Viewmont Mall Scranton, PA	100%	2003	1968/2006	JCPenney Macy’s Sears	10/31/15 (1) 12/31/15
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

Page 19

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2010 (continued)

Properties	Ownership Interest		Date Acquired		Year Built/Last Renovated		Anchors / Major Tenants	Lease Expiration
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 Burlington Coat Factory JCPenney		1/31/37 1/31/20 (1)
Woodland Mall Grand Rapids, MI		100%		2005		1968/1998	Apple Barnes & Noble JCPenney Kohl’s Macy’s Sears		6/30/15 1/31/20 (1) (1) (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 8/1/16
POWER CENTERS
Christiana Center Newark, DE		100%		1998		1998	Costco Dick’s Sporting Goods		9/30/18 11/30/13
Metroplex Shopping Center (3) Plymouth Meeting, PA		50%		1999		2001	Giant Food Store Lowe’s Target		2/28/21 (1) (1)
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) 4/30/21 (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)
Whitehall Mall (3) Allentown, PA		50%		1964		1964/1998	Bed, Bath & Beyond Kohl’s Sears		1/31/15 3/9/17 9/18/11
STRIP CENTERS
The Commons at Magnolia Florence, SC		100%		1999		1991/2002	Bed, Bath & Beyond Target		1/31/15 (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)

	September 30, 2010									December 31, 2009
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,404,454		$	210,241		$	3,614,695		$	3,459,745		$	208,319		$	3,668,064
Construction in progress		157,885			936			158,821			215,231			1,566			216,797
Land held for development		17,021			—			17,021			9,337			183			9,520
Total investments in real estate		3,579,360			211,177			3,790,537			3,684,313			210,068			3,894,381
Accumulated depreciation		(707,963	)		(64,995	)		(772,958	)		(623,309	)		(59,849	)		(683,158	)
Net investments in real estate		2,871,397			146,182			3,017,579			3,061,004			150,219			3,211,223
Investments in partnerships, at equity		27,661			(27,661	)		—			32,694			(32,694	)		—
Other assets:
Cash and cash equivalents		43,711			3,983			47,694			74,243			2,904			77,147
Rent and other receivables (2)		34,832			6,798			41,630			55,303			7,501			62,804
Intangible assets, net		19,536			340			19,876			38,978			464			39,442
Deferred costs and other assets, net		96,724			7,966			104,690			84,358			7,395			91,753
Total other assets		222,464			(8,574	)		213,890			285,576			(14,430	)		271,146
Total assets	$	3,093,861		$	137,608		$	3,231,469		$	3,346,580		$	135,789		$	3,482,369
LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $1,859 and $2,744 as of September 30, 2010 and December 31, 2009, respectively)	$	1,749,622		$	179,035		$	1,928,657		$	1,777,121		$	181,776		$	1,958,897
Exchangeable notes (net of discount of $3,282 and $4,664 as of September 30, 2010 and December 31, 2009, respectively)		133,618			—			133,618			132,236			—			132,236
Revolving Facilities		—			—			—			486,000			—			486,000
Term Loans		347,200			—			347,200			170,000			—			170,000
Tenants’ deposits and deferred rent		15,468			3,656			19,124			13,170			3,621			16,791
Distributions in excess of partnership investments		43,893			(43,893	)		—			48,771			(48,771	)		—
Accrued construction expenses		1,063			—			1,063			11,778			—			11,778
Fair value of derivative instruments		33,289			—			33,289			14,610			—			14,610
Other liabilities		57,826			(1,190	)		56,636			58,090			(1,010	)		57,080
Total liabilities		2,381,979			137,608			2,519,587			2,711,776			135,616			2,847,392
Equity:
Total equity		711,882			—			711,882			634,804			173			634,977
Total liabilities and equity	$	3,093,861		$	137,608		$	3,231,469		$	3,346,580		$	135,789		$	3,482,369

⁽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 ($25.1 million wholly owned, $2.8 million partnership) as of September 30, 2010 and $27.8 ($24.9 million wholly owned, $2.9 million partnership) as of December 31, 2009.

Page 21

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Property Type ⁽¹⁾

(in thousands, except per share amounts)

	September 30, 2010												December 31, 2009
	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	$	3,388,432		$	220,024		$	23,260		$	3,631,716		$	3,331,917		$	338,560		$	7,107		$	3,677,584
Construction in progress		104,167			57			54,597			158,821			148,561			13,810			54,426			216,797
Total investments in real estate		3,492,599			220,081			77,857			3,790,537			3,480,478			352,370			61,533			3,894,381
Accumulated depreciation		(702,501	)		(69,218	)		(1,239	)		(772,958	)		(604,083	)		(77,804	)		(1,271	)		(683,158	)
Net investments in real estate		2,790,098			150,863			76,618			3,017,579			2,876,395			274,566			60,262			3,211,223
Other assets:
Cash and cash equivalents		17,432			1,827			28,435			47,694			15,072			1,250			60,825			77,147
Rent and other receivables (2)		31,969			7,614			2,047			41,630			40,741			9,674			12,389			62,804
Intangible assets, net		12,500			—			7,376			19,876			31,988			—			7,454			39,442
Deferred costs and other assets, net		74,784			8,564			21,342			104,690			67,529			10,468			13,756			91,753
Total other assets		136,685			18,005			59,200			213,890			155,330			21,392			94,424			271,146
Total assets	$	2,926,783		$	168,868		$	135,818		$	3,231,469		$	3,031,725		$	295,958		$	154,686		$	3,482,369
LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $1,859 and $2,744 respectively)	$	1,751,711		$	172,028		$	4,918		$	1,928,657		$	1,743,555		$	205,250		$	10,092		$	1,958,897
Exchangeable notes (net of discount of $3,282 and $4,664 respectively)		—			—			133,618			133,618			—			—			132,236			132,236
Revolving Facilities		—			—			—			—			—			—			486,000			486,000
Term Loans		—			—			347,200			347,200			—			—			170,000			170,000
Tenants’ deposits and deferred rent		16,977			2,009			138			19,124			14,406			2,232			153			16,791
Accrued construction expenses		—			—			1,063			1,063			—			—			11,778			11,778
Fair value of derivative instruments		—			—			33,289			33,289			—			—			14,610			14,610
Other liabilities		35,334			(1,071	)		22,373			56,636			35,124			(2,094	)		24,050			57,080
Total liabilities		1,804,022			172,966			542,599			2,519,587			1,793,085			205,388			848,919			2,847,392
Equity:
Total equity		1,122,761			(4,098	)		(406,781	)		711,882			1,238,640			90,570			(694,233	)		634,977
Total liabilities and equity	$	2,926,783		$	168,868		$	135,818		$	3,231,469		$	3,031,725		$	295,958		$	154,686		$	3,482,369

⁽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 ($25.1 million wholly owned, $2.8 million partnership) as of September 30, 2010 and $27.8 ($24.9 million wholly owned, $2.9 million partnership) as of December 31, 2009.

Page 22

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾

(in thousands)

	September 30, 2010								December 31, 2009
	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	$	69,777	$	33	$	19,054	$	50,756	$	69,217	$	32	$	16,871	$	52,378
Capital City Mall		95,940		—		20,712		75,228		95,063		—		18,057		77,006
Chambersburg Mall		38,519		—		7,796		30,723		42,070		—		6,862		35,208
Cherry Hill Mall		446,240		42		70,882		375,400		418,058		27,083		54,781		390,360
Crossroads Mall		36,245		583		8,784		28,044		34,926		68		7,623		27,371
Cumberland Mall		62,725		97		8,575		54,247		62,540		—		7,159		55,381
Dartmouth Mall		62,694		—		26,485		36,209		62,283		—		24,494		37,789
Exton Square Mall		147,111		47		25,760		121,398		147,098		—		23,161		123,937
Francis Scott Key Mall		80,405		499		16,619		64,285		79,883		147		14,076		65,954
Gadsden Mall		60,918		—		9,196		51,722		60,471		—		7,607		52,864
The Gallery at Market East		132,069		38,837		18,604		152,302		130,679		38,816		14,838		154,657
Jacksonville Mall		79,349		—		15,629		63,720		78,346		—		13,470		64,876
Logan Valley Mall		96,010		—		22,149		73,861		95,877		—		19,674		76,203
Lycoming Mall		76,226		—		15,178		61,048		77,163		—		13,070		64,093
Magnolia Mall		88,096		—		24,329		63,767		86,756		1,295		22,028		66,023
Moorestown Mall		92,844		77		25,129		67,792		92,172		50		22,549		69,673
New River Valley Mall		57,748		—		14,564		43,184		57,748		—		12,094		45,654
Nittany Mall		43,566		—		8,923		34,643		43,417		—		7,853		35,564
North Hanover Mall		38,498		17,100		7,993		47,605		38,484		17,096		6,934		48,646
Orlando Fashion Square (2)		39,028		—		3,900		35,128		38,090		—		2,148		35,942
Palmer Park Mall		34,617		—		12,030		22,587		34,600		—		11,406		23,194
Patrick Henry Mall		141,245		—		31,273		109,972		141,004		—		27,130		113,874
Phillipsburg Mall		53,924		258		10,511		43,671		53,415		53		9,187		44,281
Plymouth Meeting Mall		157,696		9		25,792		131,913		144,036		17,032		20,149		140,919
The Mall at Prince Georges		100,381		—		32,259		68,122		100,168		—		29,645		70,523
South Mall		33,728		—		5,878		27,850		33,367		—		5,128		28,239
Uniontown Mall		39,348		—		9,372		29,976		38,782		—		8,170		30,612
Valley Mall		91,891		—		20,581		71,310		91,657		—		18,326		73,331
Valley View Mall		67,441		—		12,518		54,923		67,346		—		11,049		56,297
Viewmont Mall		89,981		—		16,909		73,072		89,113		—		14,333		74,780
Voorhees Town Center		61,914		22,484		12,997		71,401		59,639		22,355		9,799		72,195
Washington Crown Center		40,545		—		12,905		27,640		40,366		—		11,562		28,804
Willow Grove Park		189,491		23,940		45,155		168,276		189,166		23,943		40,582		172,527
Wiregrass Commons Mall		51,882		—		8,704		43,178		51,858		4		7,268		44,594
Woodland Mall		186,040		—		27,487		158,553		185,382		34		22,983		162,433
Wyoming Valley Mall		107,633		—		21,256		86,377		106,075		—		18,219		87,856
Total Consolidated Malls		3,291,765		104,006		675,888		2,719,883		3,236,315		148,008		580,285		2,804,038
Unconsolidated Malls
Lehigh Valley Mall		41,362		158		9,754		31,766		40,377		517		15,414		25,480
Springfield Mall		55,305		3		16,859		38,449		55,225		36		8,384		46,877
Total Unconsolidated Malls		96,667		161		26,613		70,215		95,602		553		23,798		72,357
TOTAL MALLS	$	3,388,432	$	104,167	$	702,501	$	2,790,098	$	3,331,917	$	148,561	$	604,083	$	2,876,395

⁽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⁾ Includes impairment of $62,700 recorded in the 4th Quarter 2009.

Page 23

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾ (continued)

(in thousands)

	September 30, 2010								December 31, 2009
	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	$	41,954	$	—	$	11,977	$	29,977	$	40,980	$	—	$	11,078	$	29,902
Creekview Center		—		—		—		—		19,104		—		7,437		11,667
The Commons at Magnolia		13,613		—		4,349		9,264		11,477		506		3,974		8,009
Monroe Marketplace		—		—		—		—		45,427		7,473		1,782		51,118
New River Valley Center		—		—		—		—		26,744		—		2,197		24,547
Paxton Towne Centre		57,122		—		15,749		41,373		56,793		—		14,370		42,423
Pitney Road Plaza		—		—		—		—		6,411		1,348		33		7,726
Sunrise Plaza		—		—		—		—		25,831		4,188		2,153		27,866
Total Consolidated Strip and Power Centers		112,689		—		32,075		80,614		232,767		13,515		43,024		203,258
Unconsolidated Strip and Power Centers
Metroplex Shopping Center		42,168		14		14,925		27,257		42,168		8		13,759		28,417
The Court at Oxford Valley		27,863		20		8,473		19,410		27,863		20		7,983		19,900
Red Rose Commons		13,178		4		3,847		9,335		12,728		—		3,580		9,148
Whitehall Mall		16,835		19		8,452		8,402		15,749		267		8,118		7,898
Springfield Park		7,291		—		1,446		5,845		7,285		—		1,340		5,945
Total Unconsolidated Strip and Power Centers		107,335		57		37,143		70,249		105,793		295		34,780		71,308
TOTAL STRIP AND POWER CENTERS	$	220,024	$	57	$	69,218	$	150,863	$	338,560	$	13,810	$	77,804	$	274,566
Consolidated Properties Under Development
Springhills (2)	$	—	$	21,961	$	—	$	21,961	$	—	$	21,961	$	—	$	21,961
White Clay Point (3)		—		31,918		—		31,918		—		31,747		—		31,747
Total Consolidated Properties Under Development		—		53,879		—		53,879		—		53,708		—		53,708
Unconsolidated Properties Under Development
Pavilion at Market East		6,239		718		1,239		5,718		6,924		718		1,271		6,371
Total Unconsolidated Properties Under Development		6,239		718		1,239		5,718		6,924		718		1,271		6,371
Other Properties
Land held for development - consolidated		17,021		—		—		17,021		183		—		—		183
Total Other Properties		17,021		—		—		17,021		183		—		—		183
TOTAL DEVELOPMENT AND OTHER	$	23,260	$	54,597	$	1,239	$	76,618	$	7,107	$	54,426	$	1,271	$	60,262
TOTAL INVESTMENT IN REAL ESTATE	$	3,631,716	$	158,821	$	772,958	$	3,017,579	$	3,677,584	$	216,797	$	683,158	$	3,211,223
CONSOLIDATED PROPERTIES	$	3,421,475	$	157,885	$	707,963	$	2,871,397	$	3,469,082	$	215,231	$	623,309	$	3,061,004
UNCONSOLIDATED PROPERTIES		210,241		936		64,995		146,182		208,319		1,566		59,849		150,036
TOTAL INVESTMENT IN REAL ESTATE	$	3,631,716	$	158,821	$	772,958	$	3,017,579	$	3,677,401	$	216,797	$	683,158	$	3,211,040

⁽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⁾ Includes impairment of $11,484 recorded in the 4th Quarter 2009.

⁽³⁾ Includes impairment of $11,799 recorded in the 4th Quarter 2008.

Page 24

Pennsylvania Real Estate Investment Trust

Property Redevelopment Summary as of September 30, 2010

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
MIXED USE	(in millions)	(in millions)
Voorhees Town Center
Voorhees, NJ	$83.0	$70.1	7.8%	2007	2012

-Phase I

-Reduced mall GLA by 470,000 sf to 654,000 sf;

-Opened a 50,000 sf office building in May 2008;

-Opened a 10,000 sf The Learning Center in August 2008.

-Phase II

-Opening a mixed use town center of approximately 140,000 sf, including:

-Opened 14,500 sf Rizzieri Masters Salon in April 2009;

-Opened 3,000 sf Rizzieri Aveda School for Beauty and Wellness in May 2009;

-Opened 13,000 sf Intoxx Fitness in March 2010;

-Opening 16,000 sf of outparcel space;

-Opening 23,400 sf Township of Voorhees municipal offices in the Spring of 2011;

-Opening 5,900 sf Firecreek Grille in the Spring of 2011;

-Opening 3,000 sf Dog House Burgers in the Spring of 2011.

-156 residential units open for leasing. A total of approximately 425 residential units to be constructed. The residential units are being constructed by our ground lessee and its 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 2013.

⁽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

Capital Expenditures

(in thousands)

	Three Months Ended September 30, 2010						Nine Months Ended September 30, 2010
	Consolidated		Unconsolidated		Total		Consolidated		Unconsolidated		Total
Redevelopment projects with incremental
GLA and/or anchor replacement	$	2,088	$	251	$	2,339	$	6,279	$	1,070	$	7,349
New development projects		200		—		200		729		—		729
Tenant allowances		5,077		443		5,520		10,466		424		10,890
Recurring capital expenditures:
CAM expenditures		3,873		9		3,882		4,449		56		4,505
Non-CAM expenditures		1,970		—		1,970		3,128		—		3,128
Total recurring capital expenditures		5,843		9		5,852		7,577		56		7,633
Total	$	13,208	$	703	$	13,911	$	25,051	$	1,550	$	26,601

Page 26

Pennsylvania Real Estate Investment Trust

Debt Analysis as of September 30, 2010

(in thousands)

Outstanding Debt
	Fixed Rate  (1)			% of Total Indebtedness			Variable Rate			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable (2)	$	1,741,654			72.3	%	$	7,968			0.3	%	$	1,749,622			72.6	%
Unconsolidated mortgage loans payable		130,783			5.4	%		48,252			2.0	%		179,035			7.4	%
Exchangeable notes (3)		133,618			5.5	%		—			0.0	%		133,618			5.5	%
Revolving Facility		—			0.0	%		—			0.0	%		—			0.0	%
Term Loans (4)		300,000			12.5	%		47,200			2.0	%		347,200			14.5	%
TOTAL OUTSTANDING DEBT	$	2,306,055			95.7	%	$	103,420			4.3	%	$	2,409,475			100.0	%
AVERAGE STATED INTEREST RATE		5.73	%					3.78	%					5.67	%

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

⁽²⁾ Includes debt premium of $1,859

⁽³⁾ Includes debt discount of $3,282

⁽⁴⁾ We entered into interest rate swap agreements to fix $100,000 of the underlying LIBOR associated with the term loans at a rate of 1.77% for the three-year initial term. An additional $200,000 of the underlying LIBOR was swapped to fixed at a rate of 0.61% for year one, 1.78% for year two and 2.96% for the balance of the initial term.

Average Debt Balance
		Mortgage Debt (1)  (2)			Revolving Facility			Term Loans			Exchangeable Notes		Exchangeable Notes Discount			TOTAL
Beginning Balance	6/30/2010	$	1,977,924		$	—		$	413,500		$	136,900	$	(3,749	)	$	2,524,575
Mortgage loan amortization, net			(7,767	)		—			—			—		—			(7,767	)
Valley View Mall mortgage loan repayment			(33,846	)		—			—			—		—			(33,846	)
Valley View Mall mortgage loan financing			32,000			—			—			—		—			32,000
One Cherry Hill mortgage payment			(698	)		—			—			—		—			(698	)
New River Valley Mall mortgage payment			(1,200	)		—			—			—		—			(1,200	)
Creekview Center mortgage loan repayment			(19,352	)		—			—			—		—			(19,352	)
New River Valley Center mortgage loan repayment			(15,826	)		—			—			—		—			(15,826	)
Pitney Road Plaza construction loan repayment			(4,476	)		—			—			—		—			(4,476	)
Revolving Facility borrowing			—			10,000			—			—		—			10,000
Revolving Facility repayment			—			(10,000	)		—			—		—			(10,000	)
Term Loan repayment			—			—			(66,300	)		—		—			(66,300	)
Exchangeable notes discount amortization			—			—			—			—		467			467
Ending Balance	9/30/2010	$	1,928,657		$	—		$	347,200		$	136,900	$	(3,282	)	$	2,409,475
Weighted Average Balance		$	1,972,792		$	1,630		$	412,876		$	136,900	$	(3,595	)	$	2,520,604

⁽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		Revolving Facility		Term Loans		Exchangeable Notes		Exchangeable Notes Discount Amortization			Total Debt
	2010	$	5,731	$	290	$	36,150	$	—	$	—	$	—	$	(473	)	$	41,698
	2011		23,051		1,153		160,808		—		—		—		(1,960	)		183,052
	2012		20,499		416		363,345		—		—		136,900		(849	)		520,311
	2013		15,209		—		430,773		—		347,200		—		—			793,182
	2014		13,634		—		99,203		—		—		—		—			112,837
	2015		12,678		—		275,156		—		—		—		—			287,834
	2016		3,084		—		219,480		—		—		—		—			222,564
	Thereafter		8,169		—		239,828		—		—		—		—			247,997
		$	102,055	$	1,859	$	1,824,743	$	—	$	347,200	$	136,900	$	(3,282	)	$	2,409,475

⁽¹⁾ The weighted average period to mortgage maturity is 3.93 years excluding extension options. Excludes debt premium on mortgage loans and debt discount on exchangeable notes. Includes 100% of mortgage debt from consolidated properties and our share of mortgage debt from unconsolidated properties, based on our ownership percentage.

Weighted Average Mortgage Interest Rates
		Interest Rate					Marked to Market Interest Rate (GAAP) (1)
Year		Balance		Interest Rate			Balance		Interest Rate
	2010	$	36,150		1.36	%	$	36,150		1.36	%
	2011		162,149		6.21	%		162,149		6.21	%
	2012		376,493		6.07	%		376,493		5.67	%
	2013		438,388		5.47	%		438,388		5.47	%
	2014		103,956		7.28	%		103,956		7.28	%
	2015		308,622		5.79	%		308,622		5.79	%
	Thereafter		501,040		5.60	%		501,040		5.60	%
	Total	$	1,926,798		5.76	%	$	1,926,798		5.69	%

⁽¹⁾ Excludes amortization of debt issuance costs.

Page 27

Pennsylvania Real Estate Investment Trust

Debt Schedule as of September 30, 2010

(in thousands)

	Lender		Proportionate Share(1)							Interest Rate			Marked to Market Interest Rate (GAAP)			Annual Debt Service		Balance at Maturity		Maturity Date
			Debt		Debt Premium/ (Discount)			Total
Fixed Rate Mortgage Loans
Christiana Center (2) (3)		Bank	$	45,000	$	—		$	45,000		5.87	%		5.87	%	$	2,642	$	45,000		June 2011
Paxton Towne Centre (2) (3)		Bank		54,000		—			54,000		5.84	%		5.84	%		3,152		54,000		July 2011
The Court at Oxford Valley		Life Insurance Co		16,755		—			16,755		8.02	%		8.02	%		2,319		16,003		July 2011
Metroplex Shopping Center		CMBS		29,374		—			29,374		7.25	%		7.25	%		2,681		28,785		Nov 2011
Capital City Mall		CMBS		49,041		1,155			50,196		7.61	%		5.50	%		4,603		47,898		Feb 2012
Beaver Valley Mall		CMBS		43,484		—			43,484		7.36	%		7.36	%		3,972		42,266		Apr 2012
Pavilion East Associates (2)		Bank		3,932		—			3,932		6.15	%		6.15	%		244		3,708		Aug 2012
Cherry Hill Mall		Life Insurance Co		185,019		—			185,019		5.42	%		5.42	%		13,510		177,689		Oct 2012
Cherry Hill Mall Supplemental Loan		Life Insurance Co		54,574		—			54,574		5.51	%		5.51	%		3,030		53,003		Oct 2012
Cumberland Mall Loan #1		CMBS		40,443		704			41,147		6.50	%		5.40	%		3,413		38,782		Nov 2012
New River Valley Mall (2)		Bank		25,000		—			25,000		6.33	%		6.33	%		1,583		25,000		Jan 2013
Dartmouth Mall		CMBS		61,565		—			61,565		4.95	%		4.95	%		4,484		57,594		June 2013
Moorestown Mall		CMBS		56,508		—			56,508		4.95	%		4.95	%		4,115		52,863		June 2013
Jacksonville Mall (2) (3)		Bank		56,265		—			56,265		5.83	%		5.83	%		3,277		56,265		Sept 2013
Logan Valley Mall (2) (3)		Bank		68,000		—			68,000		5.79	%		5.79	%		3,939		68,000		Sept 2013
Wyoming Valley Mall (2) (3)		Bank		65,000		—			65,000		5.85	%		5.85	%		3,803		65,000		Sept 2013
Francis Scott Key Mall (2)		Bank		55,000		—			55,000		5.25	%		5.25	%		2,885		55,000		Dec 2013
Viewmont Mall (2)		Bank		48,000		—			48,000		5.25	%		5.25	%		2,518		48,000		Dec 2013
Exton Square Mall		Life Insurance Co		69,018		—			69,018		7.50	%		7.50	%		5,873		66,733		Jan 2014
Lycoming Mall		Bank		34,938		—			34,938		6.84	%		6.84	%		3,001		32,470		Jul 2014
Springfield East (2)		Bank		2,285		—			2,285		5.39	%		5.39	%		168		2,061		March 2015
Springfield Park (2)		Bank		2,683		—			2,683		5.39	%		5.39	%		197		2,419		March 2015
Magnolia Mall		CMBS		60,994		—			60,994		5.33	%		5.33	%		4,413		54,842		July 2015
Patrick Henry Mall		Life Insurance Co		93,761		—			93,761		6.34	%		6.34	%		7,743		83,210		Oct 2015
Willow Grove Park		Life Insurance Co		148,899		—			148,899		5.65	%		5.65	%		11,083		132,624		Dec 2015
Valley Mall		CMBS		87,040		—			87,040		5.49	%		5.49	%		5,014		78,996		Mar 2016
Woodland Mall		CMBS		153,723		—			153,723		5.58	%		5.58	%		10,760		140,484		Apr 2016
The Mall at Prince Georges		CMBS		150,000		—			150,000		5.51	%		5.51	%		8,269		150,000		June 2017
Whitehall Mall		Life Insurance Co		5,897		—			5,897		7.00	%		7.00	%		574		4,148		Nov 2018
Cumberland Mall Loan #2		Bank		2,577		—			2,577		5.00	%		5.00	%		390		—		Dec 2018
Lehigh Valley Mall		Life Insurance Co		69,857		—			69,857		5.88	%		5.88	%		4,972		58,519		July 2020
Valley View Mall		CMBS		31,946		—			31,946		6.15	%		6.15	%		2,290		27,161		July 2020
Total Fixed Rate Mortgage Loans				1,870,578		1,859			1,872,437		5.86	%		5.78	%		130,916		1,768,523
Variable Rate Mortgage Loans
Springfield Mall		Bank		36,150		—			36,150		1.36	%		1.36	%		491		36,150		Dec 2010
One Cherry Hill Plaza (4)		Bank		4,918		—			4,918		1.56	%		1.56	%		77		4,918		Aug 2011
Red Rose Commons (5)		Bank		12,102		—			12,102		6.00	%		6.00	%		726		12,102		Oct 2011
New River Valley Mall		Bank		3,050		—			3,050		4.82	%		4.82	%		147		3,050		Jan 2013
Total Variable Rate Mortgage Loans				56,220		—			56,220		2.56	%		2.56	%		1,441		56,220
Total Mortgage Loans			$	1,926,798	$	1,859		$	1,928,657		5.76	%		5.69	%	$	132,357	$	1,824,743
CONSOLIDATED MORTGAGE LOANS			$	1,747,763	$	1,859		$	1,749,622		5.80	%		5.62	%	$	119,985	$	1,660,848
UNCONSOLIDATED MORTGAGE LOANS				179,035		—			179,035		5.43	%		5.43	%		12,372		163,895
EXCHANGEABLE NOTES (6)				136,900		(3,282	)		133,618		4.00	%		5.81	%		5,476		136,900		May 2012
REVOLVING FACILITY (7) (8)				—		—			—		5.22	%		5.22	%		—		—		March 2013
TERM LOAN - FIXED RATE (7) (9)				300,000		—			300,000		5.90	%		5.90	%		17,692		300,000		March 2013
TERM LOAN - VARIABLE RATE (7) (10)				47,200		—			47,200		5.22	%		5.22	%		2,464		113,500		March 2013
Total			$	2,410,898	$	(1,423	)	$	2,409,475		5.67	%		5.65	%	$	157,989	$	2,375,143
AMORTIZATION OF DEFERRED FINANCING FEES				—		—			—		0.00	%		0.50	%		—		—
EFFECTIVE INTEREST RATE			$	2,410,898	$	(1,423	)	$	2,409,475		5.67	%		6.15	%	$	157,989	$	2,375,143

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

⁽²⁾ The mortgage loan has been swapped to the fixed interest rate presented.

⁽³⁾ The mortgage loan has two one-year extension options.

⁽⁴⁾ The mortgage loan has two one-year extension options. The first option was exercised in June 2009 for the period August 2009 to August 2010. The second option was exercised in July 2010 for the period August 2010 to August 2011.

⁽⁵⁾ The mortgage loan has one one-year extension option.

₍₆₎ The marked to market interest rate includes the effect of deferred financing fee amortization and debt discount amortization.

⁽⁷⁾ Secured by first mortgage liens on 20 properties and a second mortgage lien on one property. See page 29 for property detail.

⁽⁸⁾ The total available to borrow against the 2010 Revolving Facility is $148.5 million.

⁽⁹⁾ We entered into interest rate swap agreements to fix $100,000 of the underlying LIBOR associated with the term loans at a rate of 1.77% for the three-year initial term. An additional $200,000 of the underlying LIBOR was swapped to fixed at a rate of 0.61% for year one, 1.78% for year two and 2.96% for the balance of the initial term.

⁽¹⁰⁾ Includes $15.8 million that is subject to a LIBOR cap with a strike rate of 2.5%. The LIBOR cap expires in March 2012.

Page 28

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios ⁽¹⁾

	September 30, 2010
Consolidated Liabilities to Gross Asset Value		67.29	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 75%
EBITDA to Interest Expense		1.89
EBITDA may not be less than 1.60 to 1.00
Adjusted EBITDA to Fixed Charges		1.61
Adjusted EBITDA may not be less than 1.35 to 1.00
Corporate Debt Yield		11.13	%
The ratio of EBITDA to total indebtedness may not be less than 9.50%.
Facility Debt Yield		11.08	%
The ratio of NOI for Collateral Properties to Facility Amount

Collateral Properties (2)
Chambersburg Mall	Nittany Mall	The Plaza at Magnolia
Crossroads Mall	North Hanover Mall	South Mall
Gadsden Mall	Orlando Fashion Square	Uniontown Mall
The Gallery at Market East I	P&S Office Building	Voorhees Town Center
The Gallery at Market East II	Palmer Park Mall	Washington Crown Center
The Commons at Magnolia	Phillipsburg Mall	Westgate Anchor Pad
New River Valley Mall (2)	Plymouth Meeting Mall	Wiregrass Commons Mall

⁽¹⁾ The amended, restated and consolidated senior secured credit agreement dated as of March 11, 2010 (the “2010 Credit Facility”) contains affirmative and negative covenants customarily found in such agreements, including requirements that the Company, on a consolidated basis, maintain certain financial ratios. All capitalized terms used on this page have the meanings ascribed to such terms in the 2010 Credit Facility. In addition to the ratios set forth herein, there are several other ratios under the 2010 Credit Agreement with which the Company must comply, all of which are described in the Company’s Current Report on Form 8-K dated March 11, 2010. The Company has filed the 2010 Credit Agreement and related material agreements in accordance with the rules and regulations of the Securities and Exchange Commission.

⁽²⁾ All properties secured by first mortgage liens except for New River Valley Mall, which is secured by second mortgage lien.

Page 29

Pennsylvania Real Estate Investment Trust

Shareholder Information

Ten Largest Institutional Shareholders:	Common Shares Held (1)
Vanguard Group, Inc.		5,369,749
BlackRock Institutional Trust Company, N.A.		4,024,152
JP Morgan Asset Management		2,544,340
State Street Global Advisors (US)		1,876,130
Heitman Real Estate Securities LLC		1,521,220
ING Clarion Real Estate Securities LLC		1,420,100
Integrity Asset Management, LLC		999,294
Pacific Heights Asset Management, LLC		900,000
TIAA-CREF		623,677
Principal Global Investors (Equity)		623,238
TOTAL of Ten Largest Institutional:		19,901,900
TOTAL of all Institutional Holders:		34,689,659
Ten Largest as % of Total Institutional:		57.4	%

⁽¹⁾ Based on 13F and 13G filings as of September 30, 2010 or most recent filings.

Breakdown of Share & Unit Ownership: Shares Held	Most Recent		% of Outstanding			December 31, 2009
Institutional (1)		34,689,659		60.1	%		24,266,770
Retail (2)		17,882,562		31.0	%		18,359,983
Insiders (3)		5,133,095		8.9	%		4,317,448
TOTAL		57,705,316		100.0	%		46,944,201

⁽¹⁾ Based on 13F and 13G filings as of September 30, 2010 or most recent filings.

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

⁽³⁾ Insider holdings as of September 30, 2010 (Shares and OP Units only). Excludes 136,025 exercisable options. See proxy statement dated April 29, 2010 for more details.

Page 30

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, interest and other 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.

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