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) April 24, 2012

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 April 24, 2012, Pennsylvania Real Estate Investment Trust provided on its web site at www.preit.com its Quarterly Supplemental Disclosure dated March 31, 2012. 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 March 31, 2012.

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: April 26, 2012	By:	/s/ Bruce Goldman
		Bruce Goldman
		Executive Vice President and General Counsel

Exhibit Index

99.1 Quarterly Supplemental Disclosure dated March 31, 2012

- 2 -

EX-99.1

Exhibit 99.1

Pennsylvania Real Estate Investment Trust^®

Supplemental Financial and Operating Information

Quarter Ended March 31, 2012

www.preit.com

NYSE: PEI

NYSE: PEIPRA

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

March 31, 2012

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-Quarters Ended March 31, 2012 and March 31, 2011	4
Net Operating Income-Quarters Ended March 31, 2012 and March 31, 2011	5
Computation of Earnings Per Share	6
Funds From Operations and Funds Available for Distribution-Quarters Ended March 31, 2012 and March 31, 2011	7
Operating Statistics
Leasing Activity Summary	8
Summarized Rent Per Square Foot and Occupancy Percentages	9
Mall Sales and Rent Per Square Foot	10
Mall Occupancy-Owned GLA	11
Strip and Power Center Rent Per Square Foot and Occupancy Percentages	12
Top Twenty Tenants	13
Lease Expirations	14
Retail Gross Leasable Area Occupancy Summary	15
Property Information	16
Balance Sheet
Balance Sheet-Proportionate Consolidation Method	21
Balance Sheet-Property Type	22
Investment in Real Estate	23
Capital Expenditures	25
Debt Analysis	26
Debt Schedule	28
Selected Debt Ratios	30
Shareholder Information	31
Definitions	32

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, achievements or results, 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; 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 interests in 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 conditions and their effect on employment, consumer confidence and spending and the corresponding effects on tenant business, performance, prospects, solvency and leasing decisions on our cash flows; and the value and potential impairment of PREIT’s properties; and PREIT’s ability to maintain and increase property occupancy, sales and net effective rental rates, including and in light of the relatively high number of leases that have expired or are expiring by the end of 2013. 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, 2011. 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. As of March 31, 2012 the Company’s 49 properties included 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 33.1 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

Second Quarter 2012 Week of July 23, 2012

Research Coverage

Company	Analyst	Phone Number
Bank of America/Merrill Lynch	Craig Schmidt	(646) 855-3640
	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
	Emmanuel Korchman	(212) 816-1382
Discern	David Wiggington	(646) 862-4177
Green Street Advisors	Cedrik Lachance	(949) 640-8780
	Daniel J. Busch	(949) 640-8780
JP Morgan	Michael W. Mueller	(212) 622-6689
	Molly McCartin	(212) 622-6615
Keefe, Bruyette, & Woods	Ben Yang	(415) 591-1631
Sidoti & Company, LLC	Jeffrey Lau	(212) 453-7029
Stifel Nicolaus	Nathan Isbee	(443) 224-1346
	Jennifer Hummert	(443) 224-1288

Page 1

Pennsylvania Real Estate Investment Trust

Press Release Announcements

Dividends and Distributions:

February 17, 2012 - PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.15 per common share.

January 17, 2012 - PREIT announced the tax status of its 2011 distributions.

Acquisitions, dispositions, development and redevelopment activities:

February 9, 2012 - PREIT announced an agreement with Mercy Health System to add a 23,500 sf health and wellness satellite location aligned with Mercy Suburban Hospital at Plymouth Meeting Mall in Plymouth Meeting, Pennsylvania.

January 31, 2012 - PREIT announced an agreement with jcpenney to relocate and expand its anchor store at North Hanover Mall in Hanover, Pennsylvania.

Financing activities:

April 20, 2012 - PREIT announced the closing of its preferred share offering.

April 13, 2012 - PREIT announced the pricing of its preferred share offering.

April 12, 2012 - PREIT announced commencement of preferred share offering.

Other activities:

March 27, 2012 - PREIT scheduled its First Quarter 2012 earnings call for Tuesday, April 24, 2012.

March 23, 2012 - PREIT announced that Joseph F. Coradino would become CEO at the annual shareholders meeting on June 7, 2012.

March 6, 2012 - PREIT announced it would present at the Citi 2012 Global Property CEO conference in Palm Beach, Florida on March 14, 2012.

February 23, 2012 - PREIT announced its Fourth Quarter 2011 and Year End 2011 results.

January 26, 2012 - PREIT scheduled its Fourth Quarter 2011 earnings call for Thursday, February 23, 2012.

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

(in thousands, except per share amounts)

	Quarter Ended March 31,						Year Ended December 31,
	2012			2011			2011			2010
TRADING INFORMATION
High Price per share	$	15.74		$	15.62		$	17.34		$	17.35
Low Price per share	$	10.49		$	12.88		$	6.50		$	8.35
Closing Share Price (at the end of period)	$	15.27		$	14.27		$	10.44		$	14.53
MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding		55,531			55,647			55,677			55,436
OP Units Outstanding		2,309			2,329			2,329			2,329
Total Shares and OP Units Outstanding		57,840			57,976			58,006			57,765
Equity Market Capitalization - Shares and OP Units	$	883,215		$	827,313		$	605,581		$	839,327
DEBT CAPITALIZATION (1)
Secured Debt Balance (2)(3)	$	2,225,189		$	2,259,514		$	2,230,645		$	2,265,572
Unsecured Debt Balance (4)		136,900			136,900			136,900			136,900
Debt Capitalization		2,362,089			2,396,414			2,367,545			2,402,472
TOTAL MARKET CAPITALIZATION	$	3,245,304		$	3,223,727		$	2,973,126		$	3,241,799
Equity Capitalization/Total Market Capitalization		27.2	%		25.7	%		20.4	%		25.9	%
Debt Capitalization/Total Market Capitalization		72.8	%		74.3	%		79.6	%		74.1	%
Unsecured Debt Balance/Total Debt		5.8	%		5.7	%		5.8	%		5.7	%
DISTRIBUTIONS PER COMMON SHARE
Ordinary Dividends		(5)		$	0.15		$	0.37		$	0.60
Capital Gain Distributions (6)		(5)			—			0.01			—
Non-Taxable Distributions		(5)			—			0.22			—
Distributions per share	$	0.15		$	0.15		$	0.60		$	0.60
Annualized Dividend Yield (7)		3.9	%		4.2	%		5.7	%		4.1	%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	31,373		$	42,584		$	27,481		$	27,481
Revolving Facility		250,000			150,000			250,000			150,000
Amount Outstanding		(30,000	)		—			(95,000	)		—
Letters of Credit		—			(561	)		—			(1,534	)
Available Revolving Facility (8)		220,000			149,439			155,000			148,466
TOTAL	$	251,373		$	192,023		$	182,481		$	175,947
Shelf Registration	$	1,000,000		$	831,812		$	1,000,000		$	831,812

⁽¹⁾  Amounts exclude debt discount on our Exchangeable Notes and debt premium on mortgage loans.

⁽²⁾ The secured debt balance includes $240,000 in Term Loans outstanding as of March 31, 2012 and December 31, 2011, and $347,200 in Term Loans outstanding as of March 31, 2011 and December 31, 2010.

⁽³⁾ The secured debt balance includes Revolving Facility balances of $30,000 as of March 31, 2012 and $95,000 as of December 31, 2011.

⁽⁴⁾ The unsecured debt balance includes Exchangeable Notes of $136,900 for all periods presented.

⁽⁵⁾ Tax status of 2012 dividend payments will be available in January 2013.

⁽⁶⁾ Includes $.004 of unrecaptured Section 1250 gain as of December 31, 2011.

⁽⁷⁾ Based on closing share price at the end of the period.

⁽⁸⁾  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 - Quarters Ended March 31, 2012 and March 31, 2011

Proportionate Consolidation Method

(in thousands)

	Quarter Ended March 31, 2012									Quarter Ended March 31, 2011
	GAAP			Share of unconsolidated partnership (1)			Total			GAAP			Share of unconsolidated partnerships (1)			Total
REVENUE:
Base rent	$	72,040		$	6,443		$	78,483		$	71,759		$	6,379		$	78,138
Expense reimbursements		32,026			2,751			34,777			33,762			2,594			36,356
Percentage rent		918			36			954			982			21			1,003
Lease termination revenue		651			61			712			25			—			25
Other real estate revenue		3,221			319			3,540			3,034			304			3,338
Real estate revenue		108,856			9,610			118,466			109,562			9,298			118,860
Interest and other income		762			—			762			918			—			918
Total revenue		109,618			9,610			119,228			110,480			9,298			119,778
EXPENSES:
Operating expenses:
CAM and real estate taxes		(36,209	)		(2,201	)		(38,410	)		(37,304	)		(2,298	)		(39,602	)
Utilities		(5,289	)		(165	)		(5,454	)		(5,831	)		(196	)		(6,027	)
Other operating expenses		(4,898	)		(581	)		(5,479	)		(5,958	)		(513	)		(6,471	)
Total operating expenses		(46,396	)		(2,947	)		(49,343	)		(49,093	)		(3,007	)		(52,100	)
Depreciation and amortization		(33,719	)		(1,851	)		(35,570	)		(34,510	)		(1,970	)		(36,480	)
Other expenses:
General and administrative expenses		(9,885	)		—			(9,885	)		(9,582	)		—			(9,582	)
Project costs and other expenses		(358	)		—			(358	)		(144	)		—			(144	)
Total other expenses		(10,243	)		—			(10,243	)		(9,726	)		—			(9,726	)
Interest expense, net (2)		(31,669	)		(2,819	)		(34,488	)		(33,613	)		(2,778	)		(36,391	)
Total expenses		(122,027	)		(7,617	)		(129,644	)		(126,942	)		(7,755	)		(134,697	)
Loss before equity in income of partnerships		(12,409	)		1,993			(10,416	)		(16,462	)		1,543			(14,919	)
Equity in income of partnerships		1,993			(1,993	)		—			1,543			(1,543	)		—
Net loss		(10,416	)		—			(10,416	)		(14,919	)		—			(14,919	)
Less: net loss attributable to noncontrolling interest		419			—			419			601			—			601
Net loss attributable to PREIT	$	(9,997	)	$	—		$	(9,997	)	$	(14,318	)	$	—		$	(14,318	)

⁽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 $536 and $382 for the quarters ended March 31, 2012 and 2011, respectively.

Page 4

Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Quarters Ended March 31, 2012 and 2011

(in thousands)

	Quarter Ended March 31, 2012									Quarter Ended March 31, 2011
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	78,135		$	348		$	78,483		$	77,786		$	352		$	78,138
Expense reimbursements		34,763			14			34,777			36,345			11			36,356
Percentage rent		954			—			954			1,003			—			1,003
Lease termination revenue		712			—			712			25			—			25
Other real estate revenue		3,415			125			3,540			3,217			121			3,338
TOTAL REAL ESTATE REVENUE		117,979			487			118,466			118,376			484			118,860
Operating expenses:
CAM and real estate taxes		(37,989	)		(421	)		(38,410	)		(39,193	)		(409	)		(39,602	)
Utilities		(5,454	)		—			(5,454	)		(6,027	)		—			(6,027	)
Other operating expenses		(5,439	)		(40	)		(5,479	)		(6,394	)		(77	)		(6,471	)
TOTAL OPERATING EXPENSES		(48,882	)		(461	)		(49,343	)		(51,614	)		(486	)		(52,100	)
NET OPERATING INCOME	$	69,097		$	26		$	69,123		$	66,762		$	(2	)	$	66,760

	Quarter Ended March 31, 2012									Quarter Ended March 31, 2011
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	72,311		$	5,824		$	78,135		$	72,009		$	5,778		$	77,787
Expense reimbursements		33,407			1,356			34,763			34,914			1,431			36,345
Percentage rent		937			17			954			986			16			1,002
Lease termination revenue		708			4			712			25			—			25
Other real estate revenue		3,386			29			3,415			3,165			52			3,217
TOTAL REAL ESTATE REVENUE		110,749			7,230			117,979			111,099			7,277			118,376
Operating expenses:
CAM and real estate taxes		(36,563	)		(1,426	)		(37,989	)		(37,650	)		(1,543	)		(39,193	)
Utilities		(5,421	)		(33	)		(5,454	)		(5,989	)		(38	)		(6,027	)
Other operating expenses		(5,250	)		(189	)		(5,439	)		(6,138	)		(256	)		(6,394	)
TOTAL OPERATING EXPENSES		(47,234	)		(1,648	)		(48,882	)		(49,777	)		(1,837	)		(51,614	)
NET OPERATING INCOME	$	63,515		$	5,582		$	69,097		$	61,322		$	5,440		$	66,762

⁽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 5

Pennsylvania Real Estate Investment Trust

Computation of

Earnings Per Share

(in thousands, except per share amounts)

	Quarter Ended March 31,
	2012			2011
Net loss	$	(10,416	)	$	(14,919	)
Noncontrolling interest		419			601
Dividends on unvested restricted shares		(61	)		(117	)
Loss used to calculate earnings per share - basic and diluted	$	(10,058	)	$	(14,435	)
Basic loss per share	$	(0.18	)	$	(0.27	)
Diluted loss per share	$	(0.18	)	$	(0.27	)
Weighted average common shares outstanding		55,584			55,485
Weighted average unvested restricted shares		(676	)		(1,019	)
Weighted average shares outstanding - basic		54,908			54,466
Weighted average effect of common share equivalents (1)		—			—
Total weighted average shares outstanding - diluted		54,908			54,466

⁽¹⁾ The Company had net losses for all periods presented. Therefore, the effect of common share equivalents of 646 and 555 for the quarters ended March 31, 2012 and 2011, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive.

Page 6

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)

	Quarter Ended March 31, 2012									Quarter Ended March 31, 2011
	Consolidated			Share of unconsolidated partnerships			Total			Consolidated			Share of unconsolidated partnerships			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue (1)	$	108,856		$	9,610		$	118,466		$	109,562		$	9,298		$	118,860
Operating expenses		(46,396	)		(2,947	)		(49,343	)		(49,093	)		(3,007	)		(52,100	)
NET OPERATING INCOME		62,460			6,663			69,123			60,469			6,291			66,760
General and administrative expenses		(9,885	)		—			(9,885	)		(9,582	)		—			(9,582	)
Interest and other income		762			—			762			918			—			918
Project costs and other expenses		(358	)		—			(358	)		(144	)		—			(144	)
Interest expense, net		(31,669	)		(2,819	)		(34,488	)		(33,613	)		(2,778	)		(36,391	)
Depreciation on non real estate assets		(192	)		—			(192	)		(252	)		—			(252	)
FFO		21,118			3,844			24,962			17,796			3,513			21,309
Depreciation on real estate assets		(33,527	)		(1,851	)		(35,378	)		(34,258	)		(1,970	)		(36,228	)
Equity in income of partnerships		1,993			(1,993	)		—			1,543			(1,543	)		—
Net loss	$	(10,416	)	$	—		$	(10,416	)	$	(14,919	)	$	—		$	(14,919	)
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	21,118		$	3,844		$	24,962		$	17,796		$	3,513		$	21,309
Adjustments:
Straight line rent		(153	)		39			(114	)		(276	)		67			(209	)
Recurring capital expenditures		(135	)		(99	)		(234	)		(330	)		(33	)		(363	)
Tenant allowances		(1,916	)		(15	)		(1,931	)		(1,229	)		—			(1,229	)
Capitalized leasing costs		(1,325	)		—			(1,325	)		(1,158	)		—			(1,158	)
Amortization of mortgage loan premium		(82	)		—			(82	)		(281	)		—			(281	)
Amortization of above- and below-market lease intangibles		(115	)		(32	)		(147	)		48			(48	)		—
Amortization of exchangeable notes debt discount		507			—			507			480			—			480
FAD	$	17,899		$	3,737		$	21,636		$	15,050		$	3,499		$	18,549
Weighted average number of shares outstanding								54,908									54,466
Weighted average effect of full conversion of OP Units								2,328									2,329
Effect of common share equivalents								646									555
Total weighted average shares outstanding, including OP Units								57,882									57,350
FFO							$	24,962								$	21,309
FFO PER DILUTED SHARE AND OP UNIT							$	0.43								$	0.37
FAD PER DILUTED SHARE AND OP UNIT							$	0.37								$	0.32
DIVIDEND PER COMMON SHARE							$	0.15								$	0.15
PAYOUT RATIOS
Payout ratio of FFO								31.6	%(2)								35.9	%(3)
Payout ratio of FAD								47.3	%(2)								62.5	%(3)

⁽¹⁾  Total includes the non-cash effect of straight-line rent.

⁽²⁾  Twelve months ended March 31, 2012.

⁽³⁾  Twelve months ended March 31, 2011.

Page 7

Pennsylvania Real Estate Investment Trust

2012 Leasing Activity Summary

					Average Base Rent psf				Change in Base Rent psf
	Number		GLA		Previous		New		Dollar		Percentage			Annualized Tenant Improvements psf (1)
New Leases - Previously Leased Space:
1st Quarter(2)		32		119,188	$	20.58	$	21.54	$	0.96		4.7	%	$	3.02
Total/Average		32		119,188	$	20.58	$	21.54	$	0.96		4.7	%	$	3.02
New Leases - Previously Vacant Space: (3)
1st Quarter		35		124,425		N/A	$	28.60	$	28.60		N/A		$	3.82
Total/Average		35		124,425		N/A	$	28.60	$	28.60		N/A		$	3.82
Renewal: (4)
1st Quarter (2)		139		481,428	$	22.28	$	22.92	$	0.64		2.9	%	$	—
Total/Average		139		481,428	$	22.28	$	22.92	$	0.64		2.9	%	$	—
Anchor New:
1st Quarter		3		285,136		N/A	$	13.87	$	13.87		N/A		$	3.40
Total/Average		3		285,136		N/A	$	13.87	$	13.87		N/A		$	3.40
Anchor Renewal:
1st Quarter		1		100,115	$	3.13	$	3.13	$	—		0.0	%	$	—
Total/Average		1		100,115	$	3.13	$	3.13	$	—		0.0	%	$	—

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

⁽²⁾  Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were -1.3% for New Leases - Previously Leased Space and 0.0% for Renewals.

⁽³⁾  This category includes newly constructed and recommissioned space.

⁽⁴⁾  This category includes expansions, relocations and lease extensions.

Page 8

Pennsylvania Real Estate Investment Trust

Summarized Rent Per Square Foot and Occupancy⁽¹⁾ Percentages

	March 31, 2012								March 31, 2011								Change
	Avg Base Rent		Occupancy						Avg Base Rent		Occupancy						Avg Base Rent			Occupancy
			Total			Non-Anchor					Total			Non-Anchor						Total			Non-Anchor
Malls weighted average(2)	$	31.75		91.5	%		87.0	%	$	32.39		90.4	%		86.5	%		-2.0	%		1.1	%		0.5	%
Strip and Power Centers weighted average	$	16.02		95.8	%		93.9	%	$	16.40		94.2	%		91.4	%		-2.3	%		1.6	%		2.5	%
Retail Portfolio weighted average	$	28.23		91.9	%		87.9	%	$	28.79		90.8	%		87.1	%		-2.0	%		1.1	%		0.8	%
Consolidated Properties	$	29.72		91.6	%		86.9	%	$	30.35		90.4	%		86.2	%		-2.1	%		1.2	%		0.7	%
Unconsolidated Properties	$	23.21		94.8	%		93.1	%	$	23.57		94.2	%		92.3	%		-1.5	%		0.6	%		0.8	%
Same Properties	$	28.23		91.9	%		87.9	%	$	28.79		90.8	%		87.1	%		-2.0	%		1.1	%		0.8	%

⁽¹⁾  Occupancy for both periods presented includes all tenants irrespective of the terms of their agreement. Previously, occupancy was reported excluding tenants under agreements with initial terms of less than one year.

⁽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 $14.33/sq ft as of March 31, 2012 and $14.24/sq ft as of March 31, 2011.

Page 9

Pennsylvania Real Estate Investment Trust

Mall Sales and Rent Per Square Foot

				March 31, 2012							March 31, 2011							Change
	% of Rolling  12 Month Mall NOI			Avg  Base Rent(1)		Avg Comp Sales(2)		Occup. Cost Ratio(2)			Avg  Base Rent(1)		Avg Comp Sales(2)		Occup. Cost Ratio(2)			Avg  Base Rent(1)			Avg Comp Sales(2)			Occup. Cost Ratio(2)
Sales per square foot over $400		26.5	%
Cherry Hill Mall				$	49.08	$	623		12.8	%	$	46.06	$	562		13.5	%		6.6	%		10.9	%		-0.7	%
Lehigh Valley Mall					45.26		576		11.1	%		45.15		537		12.4	%		0.2	%		7.3	%		-1.3	%
Woodland Mall					40.33		547		12.2	%		41.28		510		12.9	%		-2.3	%		7.3	%		-0.7	%
Jacksonville Mall					35.45		526		10.6	%		32.88		490		10.3	%		7.8	%		7.3	%		0.3	%
Dartmouth Mall					30.89		425		11.2	%		30.45		382		11.8	%		1.5	%		11.3	%		-0.6	%
Sales per square foot between $350 - $400		37.7	%
Willow Grove Park					42.86		395		16.1	%		43.61		392		16.9	%		-1.7	%		0.8	%		-0.8	%
Viewmont Mall					29.42		390		12.5	%		29.54		369		13.3	%		-0.4	%		5.7	%		-0.8	%
Patrick Henry Mall					39.68		389		14.4	%		40.07		386		14.0	%		-1.0	%		0.8	%		0.4	%
The Mall at Prince Georges					37.34		387		14.7	%		36.96		382		14.3	%		1.0	%		1.3	%		0.4	%
The Gallery at Market East					36.17		381		14.1	%		36.85		359		14.5	%		-1.8	%		6.1	%		-0.4	%
Wyoming Valley Mall					30.48		380		11.9	%		31.10		367		12.4	%		-2.0	%		3.5	%		-0.5	%
Springfield Mall					34.70		380		14.6	%		33.98		349		14.7	%		2.1	%		8.9	%		-0.1	%
Valley View Mall					28.64		378		11.8	%		30.13		364		11.9	%		-4.9	%		3.8	%		-0.1	%
Valley Mall					25.11		370		10.9	%		26.12		339		11.2	%		-3.9	%		9.1	%		-0.3	%
Moorestown Mall					34.47		364		14.3	%		36.17		377		15.1	%		-4.7	%		-3.4	%		-0.8	%
Capital City Mall					33.44		357		11.9	%		33.17		354		11.7	%		0.8	%		0.8	%		0.2	%
Crossroads Mall					21.42		355		9.0	%		21.05		317		9.8	%		1.7	%		12.0	%		-0.8	%
Sales per square foot between $300 - $349		17.3	%
Francis Scott Key Mall					27.87		347		11.6	%		27.40		336		11.5	%		1.7	%		3.3	%		0.1	%
Exton Square Mall					34.77		338		13.3	%		36.88		316		13.7	%		-5.7	%		7.0	%		-0.4	%
Magnolia Mall					27.40		327		12.5	%		28.38		318		13.1	%		-3.5	%		2.8	%		-0.6	%
Plymouth Meeting Mall					29.19		327		10.5	%		29.95		343		10.2	%		-2.5	%		-4.7	%		0.3	%
Logan Valley Mall					25.75		322		11.4	%		26.74		310		11.3	%		-3.7	%		3.9	%		0.1	%
Cumberland Mall					27.56		322		13.0	%		28.69		311		13.3	%		-4.0	%		3.5	%		-0.3	%
Gadsden Mall					20.77		317		10.1	%		21.96		293		9.6	%		-5.4	%		8.2	%		0.5	%
Sales per square foot under $300		18.5	%
Palmer Park Mall					25.19		297		11.3	%		24.36		289		12.0	%		3.4	%		2.8	%		-0.7	%
New River Valley Mall					24.23		291		10.4	%		24.11		269		10.3	%		0.5	%		8.2	%		0.1	%
Uniontown Mall					21.54		287		10.6	%		22.67		283		10.9	%		-5.0	%		1.4	%		-0.3	%
Wiregrass Commons Mall					24.87		283		11.0	%		26.23		279		12.2	%		-5.2	%		1.4	%		-1.2	%
Lycoming Mall					20.11		275		10.0	%		21.33		261		10.1	%		-5.7	%		5.4	%		-0.1	%
Nittany Mall					20.78		274		10.7	%		21.96		278		11.5	%		-5.4	%		-1.4	%		-0.8	%
North Hanover Mall					23.16		265		12.4	%		25.99		269		12.5	%		-10.9	%		-1.5	%		-0.1	%
Washington Crown Center					19.92		258		10.9	%		20.02		238		11.3	%		-0.5	%		8.4	%		-0.4	%
South Mall					22.14		255		12.2	%		23.67		245		12.5	%		-6.5	%		4.1	%		-0.3	%
Orlando Fashion Square					27.47		252		14.6	%		29.98		238		19.2	%		-8.4	%		5.9	%		-4.6	%
Beaver Valley Mall					21.64		245		13.2	%		22.23		243		13.9	%		-2.7	%		0.8	%		-0.7	%
Phillipsburg Mall					22.88		236		11.9	%		23.93		228		12.4	%		-4.4	%		3.5	%		-0.5	%
Chambersburg Mall					20.58		230		9.2	%		23.79		238		9.9	%		-13.5	%		-3.4	%		-0.7	%
Voorhees Town Center					28.00		218		12.1	%		31.96		214		11.7	%		-12.4	%		1.9	%		0.4	%
Malls weighted average				$	31.75	$	376		12.3	%	$	32.39	$	357		12.8	%		-2.0	%		5.3	%		-0.5	%
Consolidated Properties				$	30.84	$	362		12.4	%	$	31.56	$	346		12.8	%		-2.3	%		4.6	%		-0.4	%
Unconsolidated Properties				$	41.87	$	513		11.9	%	$	41.45	$	473		13.0	%		1.0	%		8.5	%		-1.1	%
Same Properties				$	31.75	$	376		12.3	%	$	32.39	$	357		12.8	%		-2.0	%		5.3	%		-0.5	%

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

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

Page 10

Pennsylvania Real Estate Investment Trust

Mall Occupancy⁽¹⁾ - Owned GLA

	March 31, 2012						March 31, 2011						Change
	Total			Non-Anchor			Total			Non-Anchor			Total			Non-Anchor
Beaver Valley Mall		91.1	%		81.0	%		89.2	%		76.8	%		1.9	%		4.2	%
Capital City Mall		97.1	%		95.1	%		97.0	%		94.8	%		0.1	%		0.3	%
Chambersburg Mall		87.1	%		72.5	%		87.0	%		72.2	%		0.1	%		0.3	%
Cherry Hill Mall		93.5	%		92.2	%		93.5	%		92.2	%		0.0	%		0.0	%
Crossroads Mall		95.9	%		91.2	%		89.9	%		77.1	%		6.0	%		14.1	%
Cumberland Mall		92.8	%		88.2	%		93.1	%		88.6	%		-0.3	%		-0.4	%
Dartmouth Mall		96.9	%		94.9	%		98.0	%		96.8	%		-1.1	%		-1.9	%
Exton Square Mall		90.8	%		79.9	%		91.1	%		80.5	%		-0.3	%		-0.6	%
Francis Scott Key Mall		95.9	%		93.3	%		98.1	%		96.5	%		-2.2	%		-3.2	%
Gadsden Mall		93.1	%		82.8	%		92.4	%		81.0	%		0.7	%		1.8	%
The Gallery at Market East(2)		61.6	%		78.3	%		61.4	%		77.7	%		0.2	%		0.6	%
Jacksonville Mall		97.9	%		95.8	%		99.6	%		99.2	%		-1.7	%		-3.4	%
Lehigh Valley Mall		96.2	%		94.7	%		95.8	%		94.2	%		0.4	%		0.5	%
Logan Valley Mall		94.1	%		86.0	%		94.9	%		87.7	%		-0.8	%		-1.7	%
Lycoming Mall		96.3	%		93.1	%		96.0	%		92.6	%		0.3	%		0.5	%
Magnolia Mall		98.0	%		95.5	%		97.4	%		94.2	%		0.6	%		1.3	%
Moorestown Mall		90.4	%		78.4	%		91.4	%		80.8	%		-1.0	%		-2.4	%
New River Valley Mall		96.9	%		94.8	%		98.0	%		96.6	%		-1.1	%		-1.8	%
Nittany Mall		96.2	%		92.2	%		94.4	%		88.7	%		1.8	%		3.5	%
North Hanover Mall		93.8	%		85.2	%		92.9	%		83.2	%		0.9	%		2.0	%
Orlando Fashion Square		90.1	%		79.1	%		90.4	%		79.6	%		-0.3	%		-0.5	%
Palmer Park Mall		94.9	%		83.7	%		94.9	%		83.6	%		0.0	%		0.1	%
Patrick Henry Mall		94.5	%		89.4	%		96.1	%		92.4	%		-1.6	%		-3.0	%
Phillipsburg Mall		85.0	%		65.5	%		88.7	%		73.9	%		-3.7	%		-8.4	%
Plymouth Meeting Mall		84.5	%		76.4	%		82.8	%		73.9	%		1.7	%		2.5	%
The Mall at Prince Georges		96.9	%		93.4	%		94.6	%		88.7	%		2.3	%		4.7	%
South Mall		86.6	%		79.6	%		89.0	%		83.2	%		-2.4	%		-3.6	%
Springfield Mall		86.6	%		86.6	%		96.1	%		96.1	%		-9.5	%		-9.5	%
Uniontown Mall		88.7	%		82.5	%		86.3	%		76.4	%		2.4	%		6.1	%
Valley Mall		96.9	%		94.7	%		92.7	%		87.4	%		4.2	%		7.3	%
Valley View Mall		95.0	%		93.2	%		96.0	%		94.4	%		-1.0	%		-1.2	%
Viewmont Mall		98.3	%		95.5	%		99.4	%		98.5	%		-1.1	%		-3.0	%
Voorhees Town Center		67.0	%		66.5	%		61.3	%		60.7	%		5.7	%		5.8	%
Washington Crown Center		90.5	%		82.5	%		89.2	%		80.1	%		1.3	%		2.4	%
Willow Grove Park(3)		96.0	%		93.4	%		69.5	%		91.2	%		26.5	%		2.2	%
Wiregrass Commons Mall		90.5	%		86.3	%		89.1	%		84.3	%		1.4	%		2.0	%
Woodland Mall		91.3	%		91.3	%		93.6	%		93.6	%		-2.3	%		-2.3	%
Wyoming Valley Mall		96.3	%		89.3	%		96.6	%		90.3	%		-0.3	%		-1.0	%
Malls weighted average(4)		91.5	%		87.0	%		90.4	%		86.5	%		1.1	%		0.5	%
Consolidated Properties		91.4	%		86.6	%		90.2	%		85.9	%		1.2	%		0.7	%
Unconsolidated Properties		94.0	%		92.5	%		95.9	%		94.8	%		-1.9	%		-2.3	%
Same Properties		91.5	%		87.0	%		90.4	%		86.5	%		1.1	%		0.5	%

⁽¹⁾  Occupancy for both periods presented includes all tenants irrespective of the terms of their agreement. Previously, occupancy was reported excluding tenants under agreements with initial terms of less than one year.

⁽²⁾  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% of the owned mall GLA as of March 31, 2012 and March 31, 2011, respectively.

⁽³⁾  The total occupancy percentage for Willow Grove Park as of March 31, 2011 includes the former Strawbridge’s store that is currently under redevelopment. This vacant department store represents 26.6% of the owned mall GLA as of March 31, 2011. In December 2011, we decommissioned 206,834 sf, of which 113,692 sf is related the new jcpenney store, 41,152 sf is related to the new Nordstrom Rack store and 24,695 sf is related to inline space.

⁽⁴⁾  Reflects the decommissioning of space related to redevelopment activity. A space is decommissioned once tenant relocations have been completed and demolition/reconfiguration of the former space has commenced. Space is recommissioned once the first tenant in the new/reconfigured wing or area is open and the remaining space is in leaseable condition.

Page 11

Pennsylvania Real Estate Investment Trust

Strip and Power Center Rent Per Square Foot and Occupancy⁽¹⁾ Percentages

	March 31, 2012								March 31, 2011								Change
	Avg Base Rent		Occupancy						Avg Base Rent		Occupancy						Avg Base Rent			Occupancy
			Total			Non-Anchor					Total			Non-Anchor						Total			Non-Anchor
Christiana Center	$	20.58		98.8	%		96.8	%	$	20.16		96.0	%		89.1	%		2.1	%		2.8	%		7.7	%
The Commons at Magnolia		15.82		80.4	%		75.6	%		15.33		87.3	%		84.2	%		3.2	%		-6.9	%		-8.6	%
Metroplex Shopping Center		20.03		100.0	%		100.0	%		19.72		100.0	%		100.0	%		1.6	%		0.0	%		0.0	%
The Court at Oxford Valley		14.98		91.7	%		90.5	%		15.66		91.7	%		90.5	%		-4.3	%		0.0	%		0.0	%
Paxton Towne Centre		14.59		100.0	%		100.0	%		15.28		98.2	%		97.3	%		-4.5	%		1.8	%		2.7	%
Red Rose Commons		13.14		100.0	%		100.0	%		14.23		84.9	%		84.9	%		-7.7	%		15.1	%		15.1	%
Springfield Park		23.88		90.0	%		71.7	%		21.35		98.2	%		94.9	%		11.9	%		-8.2	%		-23.2	%
Whitehall Mall		12.48		93.0	%		85.5	%		12.70		91.6	%		82.3	%		-1.7	%		1.4	%		3.2	%
Weighted Average	$	16.02		95.8	%		93.9	%	$	16.40		94.2	%		91.4	%		-2.3	%		1.6	%		2.5	%
Consolidated Properties	$	16.16		97.2	%		95.1	%	$	16.35		96.1	%		93.2	%		-1.2	%		1.1	%		1.9	%
Unconsolidated Properties	$	15.97		95.2	%		93.5	%	$	16.42		93.3	%		90.8	%		-2.7	%		1.9	%		2.7	%
Same Properties	$	16.02		95.8	%		93.9	%	$	16.40		94.2	%		91.4	%		-2.3	%		1.6	%		2.5	%

⁽¹⁾  Occupancy for both periods presented includes all tenants irrespective of the terms of their agreement. Previously, occupancy was reported excluding tenants under agreements with initial terms of less than one year.

Page 12

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.		43		546,691		4		42,666		47		589,357	$	11,900	$	10,933		3.53	%
J.C. Penney Corporation, Inc.		24		2,370,409		6		824,327		30		3,194,736		7,679		7,679		2.48	%
Foot Locker, Inc.		57		267,928		9		65,798		66		333,726		7,625		7,167		2.31	%
Limited Brands, Inc.		57		272,225		15		48,323		72		320,548		7,561		7,115		2.30	%
American Eagle Outfitters, Inc.		40		218,381		1		4,752		41		223,133		6,969		6,655		2.15	%
Sears Holding Corporation		24		2,796,396		5		880,777		29		3,677,173		5,445		5,302		1.71	%
Zale Corporation		72		52,293		0		—		72		52,293		5,556		5,260		1.70	%
Signet Jewelers Limited		39		60,145		0		—		39		60,145		4,615		4,460		1.44	%
Dick’s Sporting Goods, Inc.		8		371,224		2		95,935		10		467,159		4,845		4,124		1.33	%
Luxottica Group S.p.A.		47		117,054		3		5,863		50		122,917		4,301		3,949		1.27	%
Abercrombie & Fitch Co.		19		128,443		0		—		19		128,443		3,872		3,490		1.13	%
Genesco, Inc.		59		77,834		3		3,044		62		80,878		3,517		3,374		1.09	%
Commonwealth of Pennsylvania		2		229,244		0		—		2		229,244		3,092		3,092		1.00	%
Aeropostale, Inc.		32		112,328		4		13,590		36		125,918		3,281		3,052		0.98	%
Hallmark Cards, Inc.		34		138,313		4		17,572		38		155,885		3,169		2,997		0.97	%
Barnes & Noble, Inc.		9		271,086		0		—		9		271,086		4,013		2,977		0.96	%
Shoe Show, Inc.		26		179,491		5		25,549		31		205,040		2,992		2,895		0.93	%
Best Buy Co., Inc.		19		200,502		0		—		19		200,502		3,890		2,894		0.93	%
Burlington Coat Factory		6		537,986		0		—		6		537,986		2,826		2,826		0.91	%
Regis Corporation		75		91,309		3		4,651		78		95,960		2,820		2,729		0.88	%
Total Top 20 Tenants		692		8,209,485		64		2,032,847		756		11,072,129	$	99,968	$	92,970		30.00	%
Total Leases										3,037					$	309,898		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 rent from partnership properties based on PREIT’s ownership percentage in the respective partnerships.

Page 13

Pennsylvania Real Estate Investment Trust

Lease Expirations as of March 31, 2012

(dollars in thousands except psf amounts)

Non-Anchors⁽¹⁾

			Gross Leasable Area					Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring		Expiring GLA(2)		Percent of Total			Minimum Rent in Expiring Year(2)		PREIT’s Share of Minimum Rent in Expiring Year(3)		Percent of PREIT’s Total			Average Expiring Minimum Rent psf
Holdover		353		981,042		8.1	%	$	25,910	$	24,948		9.2	%	$	26.41
2012		282		723,681		6.0	%		18,339		17,220		6.4	%		25.34
2013		454		1,537,511		12.7	%		33,234		31,069		11.5	%		21.62
2014		362		1,267,633		10.5	%		28,053		25,701		9.5	%		22.13
2015		278		1,356,561		11.2	%		30,796		27,811		10.3	%		22.70
2016		324		1,435,071		11.8	%		38,581		34,470		12.7	%		26.88
2017		216		947,583		7.8	%		25,370		22,608		8.3	%		26.77
2018		188		1,007,595		8.3	%		26,011		23,754		8.8	%		25.81
2019		137		611,056		5.0	%		18,362		17,452		6.4	%		30.05
2020		131		923,846		7.6	%		19,957		18,762		6.9	%		21.60
2021		124		595,081		4.9	%		15,001		13,458		5.0	%		25.21
Thereafter		80		724,909		6.1	%		14,218		13,568		5.0	%		19.61
Total/ Average		2,929		12,111,569		100.0	%	$	293,832	$	270,821		100.0	%	$	24.26

Anchors⁽¹⁾

			Gross Leasable Area					Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring(4)		Expiring GLA		Percent of Total			Minimum Rent in Expiring Year		PREIT’s Share of Minimum Rent in Expiring Year(3)		Percent of PREIT’s Total			Average Expiring Minimum Rent psf
2013		13		1,035,455		9.2	%	$	4,294	$	4,294		11.0	%		4.15
2014		15		1,491,412		13.3	%		4,113		3,651		9.3	%		2.76
2015		18		1,715,835		15.3	%		5,115		5,115		13.1	%		2.98
2016		20		1,895,436		16.9	%		4,777		4,777		12.2	%		2.52
2017		10		1,233,341		11.0	%		3,889		3,437		8.8	%		3.15
2018		7		878,080		7.8	%		4,387		4,387		11.2	%		5.00
2019		7		770,343		6.9	%		2,014		2,014		5.2	%		2.61
2020		4		346,039		3.1	%		1,414		1,414		3.6	%		4.09
2021		4		426,239		3.8	%		3,059		1,775		4.5	%		7.18
Thereafter		10		1,410,486		12.7	%		8,213		8,213		21.1	%		5.82
Total/ Average		108		11,202,666		100.0	%	$	41,275	$	39,077		100.0	%	$	3.68

⁽¹⁾  Only includes owned space.

⁽²⁾  Does not include tenants occupying space under agreements with initial terms of less than one year. The GLA of these tenants is 348,954 sf.

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

⁽⁴⁾  Accounts for all contiguous anchor space as one lease.

Page 14

Pennsylvania Real Estate Investment Trust

Retail Gross Leasable Area Occupancy Summary as of March 31, 2012

	Owned GLA
	Occupied						Vacant
			Non-Anchor
	Anchor		Large  Format(1)		Small  Shop(2)		Anchor		Non-Anchor		GLA Not Owned		Total GLA
Malls
Beaver Valley Mall		511,267		148,740		212,507		—		84,882		204,770		1,162,166
Capital City Mall		204,301		63,586		206,860		—		14,022		120,000		608,769
Chambersburg Mall		241,690		19,651		134,602		—		58,480		—		454,423
Cherry Hill Mall(3)		138,000		204,015		424,962		—		53,551		478,885		1,299,413
Crossroads Mall		254,211		74,108		128,334		—		19,625		—		476,278
Cumberland Mall		264,348		212,538		145,777		—		48,004		273,230		943,897
Dartmouth Mall		208,460		142,274		163,678		—		16,386		140,000		670,798
Exton Square Mall		440,301		26,617		268,237		—		74,223		277,468		1,086,846
Francis Scott Key Mall		222,176		140,616		186,229		—		23,607		139,333		711,961
Gadsden Mall		300,960		66,429		99,012		—		34,370		—		500,771
The Gallery at Market East		350,115		73,975		243,911		328,390		88,041		—		1,084,432
Jacksonville Mall		242,115		98,693		136,227		—		11,692		—		488,727
Lehigh Valley Mall		212,000		171,800		371,718		—		30,222		371,986		1,157,726
Logan Valley Mall		455,060		43,943		236,427		—		45,773		—		781,203
Lycoming Mall		333,413		182,268		172,758		—		26,167		120,000		834,606
Magnolia Mall		343,118		86,608		171,473		—		12,248		—		613,447
Moorestown Mall		408,356		82,682		176,111		—		71,131		321,200		1,059,480
New River Valley Mall		175,306		134,996		117,124		—		13,850		—		441,276
Nittany Mall		221,462		12,500		186,327		—		16,755		95,000		532,044
North Hanover Mall		206,792		21,047		105,769		—		22,103		—		355,711
Orlando Fashion Square		491,999		136,808		211,396		—		92,072		155,576		1,087,851
Palmer Park Mall		314,235		—		120,304		—		23,392		—		457,931
Patrick Henry Mall		279,619		16,741		246,848		—		32,693		140,000		715,901
Phillipsburg Mall		326,552		42,021		122,097		—		86,468		—		577,138
Plymouth Meeting Mall(4)		253,584		163,161		206,640		—		114,165		214,635		952,185
The Mall at Prince Georges		479,619		139,553		270,539		—		28,864		—		918,575
South Mall		139,691		120,071		91,334		—		54,103		—		405,199
Springfield Mall		—		—		192,293		—		29,829		387,899		610,021
Uniontown Mall		391,096		67,996		161,003		30,282		48,615		—		698,992
Valley Mall		280,549		125,334		247,217		—		20,670		243,400		917,170
Valley View Mall		96,357		74,148		162,766		—		17,365		254,596		605,232
Viewmont Mall		386,262		82,893		147,257		—		10,782		120,000		747,194
Voorhees Town Center(5)		4,404		67,478		137,134		—		103,105		420,838		732,959
Washington Crown Center		245,401		89,086		151,018		—		50,822		140,095		676,422
Willow Grove Park		225,000		54,425		280,572		—		23,548		413,121		996,666
Wiregrass Commons		94,686		10,345		171,782		—		29,001		332,152		637,966
Woodland Mall		—		120,959		276,394		—		37,737		725,187		1,160,277
Wyoming Valley Mall		592,110		90,851		194,316		—		34,023		—		911,300
Total Malls (38 properties)		10,334,615		3,408,956		7,278,953		358,672		1,602,386		6,089,371		29,072,953
Strip and Power Centers
Christiana Center		190,814		68,132		40,233		—		3,600		—		302,779
The Commons at Magnolia		20,631		28,618		34,667		—		20,416		126,200		230,532
Metroplex Shopping Center		67,185		353,984		56,292		—		—		300,729		778,190
The Court at Oxford Valley		59,620		314,149		45,341		—		37,793		247,623		704,526
Paxton Towne Centre		151,627		221,425		71,380		—		—		273,058		717,490
Red Rose Commons		—		248,085		15,206		—		—		199,590		462,881
Springfield Park		83,539		10,000		22,443		—		12,829		145,669		274,480
Whitehall Mall		294,635		192,099		43,891		—		39,920		—		570,545
Total Strip and Power Centers (8 properties)		868,051		1,436,492		329,453		—		114,558		1,292,869		4,041,423
CONSOLIDATED PROPERTIES		10,485,687		3,555,331		6,861,222		358,672		1,566,351		5,728,744		28,556,007
UNCONSOLIDATED PROPERTIES		716,979		1,290,117		747,184		—		150,593		1,653,496		4,558,369
TOTAL PROPERTIES		11,202,666		4,845,448		7,608,406		358,672		1,716,944		7,382,240		33,114,376

⁽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 6,554 sf has been built but not commissioned, and 128,514 sf has been entitled but not yet built.

Page 15

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2012

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) 8/15/16
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	1/28/16 1/31/19 3/31/17 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 Dick’s Sporting Goods jcpenney Sears	11/5/14 1/31/22 12/31/16 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 1/31/19 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

Page 16

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2012 (continued)

Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
Jacksonville Mall Jacksonville, NC	100%	2003	1981/2008	Barnes & Noble Belk jcpenney Sears	5/31/18 8/21/16 8/31/15 8/4/16
Lehigh Valley Mall(3) Allentown, PA	50%	1973	1977/2007	Barnes & Noble Boscov’s jcpenney Macy’s	10/31/17 (1) (1) 7/31/17
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 Burlington Coat Factory Dick’s Sporting Goods jcpenney Macy’s Sears	1/31/17 7/27/16 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 3/31/17 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	4/19/20 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 1/31/16 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)

Page 17

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2012 (continued)

Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
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	Dick’s Sporting Goods Dillard’s jcpenney Macy’s	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 10/31/16
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 Sears Teletech Customer Care	1/30/16 1/31/19 10/31/15 2/25/18 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	1/31/17 (1) 7/31/15 (1) (1)

Page 18

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2012 (continued)

Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
Viewmont Mall Scranton, PA	100%	2003	1968/2006	jcpenney Macy’s Sears	10/31/15 (1) 12/31/15
Voorhees Town Center Voorhees, NJ	100%	2003	1970/2007	Boscov’s Macy’s The Star Group Voorhees Town Hall	(1) (1) 8/31/28 (1)
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 Burlington Coat Factory Dillard’s jcpenney	(1) 1/31/20 (1) (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	1/31/17 4/30/17 1/31/17 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	5/31/21 (1) 4/30/21 (1)
Paxton Towne Centre Harrisburg, PA	100%	1999	2001	Costco Kohl’s Target Weis Markets	(1) 1/30/21 (1) 11/30/20
Red Rose Commons(3) Lancaster, PA	50%	1998	1998	Home Depot Weis Markets	(1) (1)

Page 19

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2012 (continued)

Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
Whitehall Mall(3) Allentown, PA	50%	1964	1964/1998	Bed, Bath & Beyond Kohl’s Sears	1/31/15 3/9/17 9/18/21
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)

	March 31, 2012									December 31, 2011
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,473,802		$	211,904		$	3,685,706		$	3,470,167		$	211,790		$	3,681,957
Construction in progress		96,671			793			97,464			91,538			864			92,402
Land held for development		15,107			—			15,107			15,292			—			15,292
Total investments in real estate		3,585,580			212,697			3,798,277			3,576,997			212,654			3,789,651
Accumulated depreciation		(875,267	)		(75,256	)		(950,523	)		(844,010	)		(73,594	)		(917,604	)
Net investments in real estate		2,710,313			137,441			2,847,754			2,732,987			139,060			2,872,047
Investments in partnerships, at equity		15,866			(15,866	)		—			16,009			(16,009	)		—
Other assets:
Cash and cash equivalents		26,022			5,351			31,373			21,798			5,683			27,481
Rent and other receivables(2)		34,322			2,361			36,683			39,832			2,065			41,897
Intangible assets, net		9,298			158			9,456			9,921			178			10,099
Deferred costs and other assets, net		88,551			12,441			100,992			89,707			15,704			105,411
Total other assets		174,059			4,445			178,504			177,267			7,621			184,888
Total assets	$	2,884,372		$	141,886		$	3,026,258		$	2,910,254		$	146,681		$	3,056,935
LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $201 and $282 as of March 31, 2012 and December 31, 2011, respectively)	$	1,751,517		$	203,873		$	1,955,390		$	1,691,381		$	204,546		$	1,895,927
Exchangeable Notes (net of discount of $342 and $849 as of March 31, 2012 and December 31, 2011, respectively)		136,558			—			136,558			136,051			—			136,051
Term Loans		240,000			—			240,000			240,000			—			240,000
Revolving Facility		30,000			—			30,000			95,000			—			95,000
Tenants’ deposits and deferred rent		15,635			3,469			19,104			13,278			3,492			16,770
Distributions in excess of partnership investments		65,869			(65,869	)		—			64,938			(64,938	)		—
Fair value of derivative instruments		19,661			—			19,661			21,112			—			21,112
Other liabilities		54,866			413			55,279			60,456			3,581			64,037
Total liabilities		2,314,106			141,886			2,455,992			2,322,216			146,681			2,468,897
Equity:
Total equity		570,266			—			570,266			588,038			—			588,038
Total liabilities and equity	$	2,884,372		$	141,886		$	3,026,258		$	2,910,254		$	146,681		$	3,056,935

⁽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 $28.0 million ($25.7 million wholly owned, $2.3 million partnership) as of March 31, 2012 and $27.9 million ($25.5 million wholly owned, $2.4 million partnership) as of December 31, 2011.

Page 21

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Property Type⁽¹⁾

(in thousands, except per share amounts)

	March 31, 2012												December 31, 2011
	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	$	3,458,435		$	221,021		$	21,357		$	3,700,813		$	3,454,686		$	221,021		$	21,542		$	3,697,249
Construction in progress		40,731			—			56,733			97,464			36,088			—			56,314			92,402
Total investments in real estate		3,499,166			221,021			78,090			3,798,277			3,490,774			221,021			77,856			3,789,651
Accumulated depreciation		(870,035	)		(78,933	)		(1,555	)		(950,523	)		(838,810	)		(77,292	)		(1,502	)		(917,604	)
Net investments in real estate		2,629,131			142,088			76,535			2,847,754			2,651,964			143,729			76,354			2,872,047
Other assets:
Cash and cash equivalents		19,803			2,045			9,525			31,373			16,947			2,113			8,421			27,481
Rent and other receivables(2)		32,870			2,817			996			36,683			38,087			2,451			1,359			41,897
Intangible assets, net		2,224						7,232			9,456			2,852			—			7,247			10,099
Deferred costs and other assets, net		67,821			11,953			21,218			100,992			67,851			15,309			22,251			105,411
Total other assets		122,718			16,815			38,971			178,504			125,737			19,873			39,278			184,888
Total assets	$	2,751,849		$	158,903		$	115,506		$	3,026,258		$	2,777,701		$	163,602		$	115,632		$	3,056,935
LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $201 and $282 as of March 31, 2012 and December 31, 2011, respectively)	$	1,754,435		$	200,955		$	—		$	1,955,390		$	1,694,476		$	201,451		$	—		$	1,895,927
Exchangeable Notes (net of discount of $342 and $849 as of March 31, 2012 and December 31, 2011, respectively)		—			—			136,558			136,558			—			—			136,051			136,051
Term Loans		—			—			240,000			240,000			—			—			240,000			240,000
Revolving Facility		—			—			30,000			30,000			—			—			95,000			95,000
Tenants’ deposits and deferred rent		17,132			1,822			150			19,104			14,686			1,933			151			16,770
Fair value of derivative instruments					—			19,661			19,661			—			—			21,112			21,112
Other liabilities		33,513			(1,503	)		23,269			55,279			33,098			1,687			29,252			64,037
Total liabilities		1,805,080			201,274			449,638			2,455,992			1,742,260			205,071			521,566			2,468,897
Equity:
Total equity		946,769			(42,371	)		(334,132	)		570,266			1,035,441			(41,469	)		(412,269	)		588,038
Total liabilities and equity	$	2,751,849		$	158,903		$	115,506		$	3,026,258		$	2,777,701		$	163,602		$	115,632		$	3,056,935

⁽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 $28.0 million ($25.7 million wholly owned, $2.3 million partnership) as of March 31, 2012, and $27.9 million ($25.5 million wholly owned, $2.4 million partnership) as of December 31, 2011.

Page 22

Pennsylvania Real Estate Investment Trust

Investment in Real Estate⁽¹⁾

(in thousands)

	March 31, 2012								December 31, 2011
	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	$	70,445	$	—	$	22,309	$	48,136	$	70,444	$	—	$	21,550	$	48,894
Capital City Mall		96,392		44		25,885		70,551		96,393		—		25,081		71,312
Chambersburg Mall		38,435		—		9,109		29,326		38,445		—		8,870		29,575
Cherry Hill Mall		452,605		754		103,504		349,855		452,603		419		98,194		354,828
Crossroads Mall		44,921		101		10,576		34,446		44,634		873		10,206		35,301
Cumberland Mall		64,052		18		11,475		52,595		63,595		671		10,982		53,284
Dartmouth Mall		63,123		—		28,978		34,145		63,105		—		28,511		34,594
Exton Square Mall		148,992		72		30,777		118,287		148,948		72		29,903		119,117
Francis Scott Key Mall		78,363		26		20,111		58,278		78,340		—		19,395		58,945
Gadsden Mall		62,657		—		12,299		50,358		62,336		—		11,820		50,516
The Gallery at Market East		170,034		8,401		29,305		149,130		170,032		4,479		27,437		147,074
Jacksonville Mall		80,323		—		19,423		60,900		80,042		—		18,701		61,341
Logan Valley Mall		96,338		—		25,346		70,992		96,326		—		24,777		71,549
Lycoming Mall		77,566		—		19,092		58,474		77,566		—		18,451		59,115
Magnolia Mall		88,755		—		28,004		60,751		88,770		33		27,121		61,682
Moorestown Mall		93,282		157		28,923		64,516		93,291		104		28,194		65,201
New River Valley Mall		58,142		—		19,263		38,879		58,142		—		18,501		39,641
Nittany Mall		44,020		—		10,685		33,335		44,327		—		10,372		33,955
North Hanover Mall(2)		27,220		682		5,420		22,482		27,219		101		5,092		22,228
Orlando Fashion Square		43,227		—		8,221		35,006		43,226		—		7,550		35,676
Palmer Park Mall		34,529		—		13,117		21,412		34,529		—		12,912		21,617
Patrick Henry Mall		142,483		—		39,381		103,102		142,469		—		37,953		104,516
Phillipsburg Mall(3)		19,694		—		4,973		14,721		19,714		—		4,760		14,954
Plymouth Meeting Mall		161,869		245		35,908		126,206		161,328		7		34,397		126,938
The Mall at Prince Georges		101,557		—		37,212		64,345		101,522		—		36,338		65,184
South Mall		34,197		421		7,133		27,485		34,196		—		6,924		27,272
Uniontown Mall		40,841		—		11,499		29,342		40,827		—		11,156		29,671
Valley Mall		93,068		—		24,135		68,933		92,966		—		23,494		69,472
Valley View Mall		67,931		—		15,114		52,817		67,930		—		14,699		53,231
Viewmont Mall		91,349		—		21,336		70,013		91,330		—		20,588		70,742
Voorhees Town Center		89,201		154		18,893		70,462		88,473		808		17,680		71,601
Washington Crown Center		40,433		—		13,790		26,643		40,432		—		13,594		26,838
Willow Grove Park		195,861		29,591		53,057		172,395		195,841		28,385		51,600		172,626
Wiregrass Commons Mall		53,629		—		11,431		42,198		53,629		—		10,964		42,665
Woodland Mall		186,735		—		35,616		151,119		185,681		—		34,139		151,542
Wyoming Valley Mall		108,738		—		27,126		81,612		108,721		—		26,112		82,609
Total Consolidated Malls		3,361,007		40,666		838,426		2,563,247		3,357,372		35,952		808,018		2,585,306
Unconsolidated Malls
Lehigh Valley Mall		41,743		40		19,362		22,421		41,648		130		18,960		22,818
Springfield Mall		55,685		25		12,247		43,463		55,666		6		11,832		43,840
Total Unconsolidated Malls		97,428		65		31,609		65,884		97,314		136		30,792		66,658
TOTAL MALLS	$	3,458,435	$	40,731	$	870,035	$	2,629,131	$	3,454,686	$	36,088	$	838,810	$	2,651,964

⁽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⁾  Net of impairment of $24,134 recorded in the 3rd Quarter of 2011.

⁽³⁾  Net of impairment of $27,977 recorded in the 3rd Quarter of 2011.

Page 23

Pennsylvania Real Estate Investment Trust

Investment in Real Estate⁽¹⁾ (continued)

(in thousands)

	March 31, 2012								December 31, 2011
	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	$	42,681	$	—	$	13,871	$	28,810	$	42,681	$	—	$	13,552	$	29,129
The Commons at Magnolia		12,677		—		3,950		8,727		12,677		—		3,835		8,842
Paxton Towne Centre		57,437		—		19,020		38,417		57,437		—		18,605		38,832
Total Consolidated Strip and Power Centers		112,795		—		36,841		75,954		112,795		—		35,992		76,803
Unconsolidated Strip and Power Centers
Metroplex Shopping Center		42,791		—		17,690		25,101		42,791		—		17,289		25,502
The Court at Oxford Valley		27,908		—		9,375		18,533		27,908		—		9,217		18,691
Red Rose Commons		13,617		—		4,382		9,235		13,617		—		4,294		9,323
Springfield Park		7,194		—		1,724		5,470		7,194		—		1,686		5,508
Whitehall Mall		16,716		—		8,921		7,795		16,716		—		8,814		7,902
Total Unconsolidated Strip and Power Centers		108,226		—		42,092		66,134		108,226		—		41,300		66,926
TOTAL STRIP AND POWER CENTERS	$	221,021	$	—	$	78,933	$	142,088	$	221,021	$	—	$	77,292	$	143,729
Consolidated Properties Under Development
Springhills	$	—	$	22,009	$	—	$	22,009	$	—	$	22,004	$	—	$	22,004
White Clay Point		—		33,996		—		33,996		—		33,582		—		33,582
Total Consolidated Properties Under Development		—		56,005		—		56,005		—		55,586		—		55,586
Unconsolidated Properties Under Development
Pavilion at Market East		6,250		728		1,555		5,423		6,250		728		1,502		5,476
Total Unconsolidated Properties Under Development		6,250		728		1,555		5,423		6,250		728		1,502		5,476
Other Properties
Land held for development - consolidated		15,107		—		—		15,107		15,292		—		—		15,292
Total Other Properties		15,107		—		—		15,107		15,292		—		—		15,292
TOTAL DEVELOPMENT AND OTHER	$	21,357	$	56,733	$	1,555	$	76,535	$	21,542	$	56,314	$	1,502	$	76,354
TOTAL INVESTMENT IN REAL ESTATE	$	3,700,813	$	97,464	$	950,523	$	2,847,754	$	3,697,249	$	92,402	$	917,604	$	2,872,047
CONSOLIDATED PROPERTIES	$	3,488,909	$	96,671	$	875,267	$	2,710,313	$	3,485,459	$	91,538	$	844,010	$	2,732,987
UNCONSOLIDATED PROPERTIES		211,904		793		75,256		137,441		211,790		864		73,594		139,060
TOTAL INVESTMENT IN REAL ESTATE	$	3,700,813	$	97,464	$	950,523	$	2,847,754	$	3,697,249	$	92,402	$	917,604	$	2,872,047

⁽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

Capital Expenditures

(in thousands)

	Quarter Ended March 31, 2012
	Consolidated		Unconsolidated		Total
Redevelopment projects with incremental GLA and/or anchor replacement(1)	$	6,537	$	—	$	6,537
New development projects		415		—		415
Tenant allowances		1,916		15		1,931
Recurring capital expenditures:
CAM expenditures		116		99		215
Non-CAM expenditures		19		—		19
Total recurring capital expenditures		135		99		234
Total	$	9,003	$	114	$	9,117

⁽¹⁾  Net of any tenant reimbursements, parcel sales, tax credits or other incentives.

Page 25

Pennsylvania Real Estate Investment Trust

Debt Analysis as of March 31, 2012

(in thousands)

Outstanding Debt
	Fixed Rate(1)			% of Total Indebtedness			Variable  Rate(2)			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable(3)	$	1,737,684			73.6	%	$	13,833			0.6	%	$	1,751,517			74.2	%
Unconsolidated mortgage loans payable		200,132			8.5	%		3,741			0.1	%		203,873			8.6	%
Exchangeable notes(4)		136,558			5.8	%		—			0.0	%		136,558			5.8	%
2010 Credit Facility(5)		190,000			8.0	%		80,000			3.4	%		270,000			11.4	%
TOTAL OUTSTANDING DEBT	$	2,264,374			95.9	%	$	97,574			4.1	%	$	2,361,948			100.0	%
AVERAGE STATED INTEREST RATE		5.49	%					4.08	%					5.40	%

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

⁽²⁾  The variable rate amount includes $15.4 million that was subject to a LIBOR cap with a strike rate of 2.5% which expired in April 2012.

⁽³⁾ Includes debt premium of $201

⁽⁴⁾  Net of debt discount of $342

⁽⁵⁾  As of March 31, 2012, for presentation purposes, we have designated interest rate swap agreements to effectively fix $190.0 million of the underlying LIBOR associated with the 2010 Credit Facility until March 10, 2013 at a current weighted average rate of 1.83% (excluding the spread on the related debt). Of that notional amount, $185.0 million of this $190.0 million is also covered by a forward starting swap that became effective on April 2, 2012 and remains effective until March 13, 2013 at a rate of 2.96%, excluding the spread on the related debt. Additionally, $15.4 million was subject to a LIBOR cap with a strike price of 2.50% which expired in April 2012.

Average Debt Balance
					2010 Credit Facility
		Mortgage  Debt(1)			Revolving Facility			Term Loans		Exchangeable Notes		Exchangeable Notes Discount			TOTAL
Beginning Balance	12/31/2011	$	1,895,927		$	95,000		$	240,000	$	136,900	$	(849	)	$	2,366,978
Capital City Mall new mortgage loan			65,750			—			—		—		—			65,750
Mortgage loan amortization(2)			(6,287	)		—			—		—		—			(6,287	)
Revolving Facility pay down			—			(65,000	)		—		—		—			(65,000	)
Exchangeable notes discount amortization			—			—			—		—		507			507
Ending Balance	3/31/2012	$	1,955,390		$	30,000		$	240,000	$	136,900	$	(342	)	$	2,361,948
Weighted Average Balance		$	1,924,984		$	67,143		$	240,000	$	136,900	$	(681	)	$	2,368,346

⁽¹⁾ Includes debt premium.

⁽²⁾ Includes the amortization of debt premium.

Debt Maturities(1)
					Mortgage		2010 Credit Facility						Exchangeable
Year	Scheduled Amortization		Debt Premium Amortization		Balance at Maturity		Revolving Facility		Term Loans		Exchangeable Notes		Notes Discount Amortization			Total Debt
2012	$	17,301	$	201	$	413,705	$	—	$	—	$	136,900	$	(342	)	$	567,765
2013		18,599		—		397,723		—		—		—		—			416,322
2014		17,199		—		99,203		30,000		240,000		—		—			386,402
2015		16,375		—		305,896		—		—		—		—			322,271
2016		6,233		—		243,745		—		—		—		—			249,978
2017		5,118		—		150,000		—		—		—		—			155,118
Thereafter		19,363		—		244,729		—		—		—		—			264,092
	$	100,188	$	201	$	1,855,001	$	30,000	$	240,000	$	136,900	$	(342	)	$	2,361,948

⁽¹⁾  The weighted average period to mortgage maturity is 3.43 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.

Page 26

Weighted Average Mortgage Interest Rates
	Interest Rate					Marked to Market Interest Rate (GAAP)(1)
Year	Balance		Interest Rate			Balance		Interest Rate
2012	$	416,790		5.04	%	$	416,790		4.92	%
2013		401,174		5.43	%		401,174		5.43	%
2014		101,994		7.28	%		101,994		7.28	%
2015		332,595		5.69	%		332,595		5.69	%
2016		262,866		5.38	%		262,866		5.38	%
2017		150,000		5.51	%		150,000		5.51	%
Thereafter		289,770		5.45	%		289,770		5.45	%
Total	$	1,955,189		5.54	%	$	1,955,189		5.51	%

⁽¹⁾  Excludes amortization of debt issuance costs.

Page 27

Pennsylvania Real Estate Investment Trust

Debt Schedule as of March 31, 2012

(in thousands)

		Proportionate Share(1)									Marked to Market
	Lender	Debt		Debt Premium/ (Discount)		Total		Interest Rate			Interest Rate (GAAP)			Annual Debt Service		Balance at Maturity		Initial Maturity Date		Fully Extended Maturity Date
Fixed Rate Mortgage Loans
Beaver Valley Mall(2)	CMBS	$	42,328	$	—	$	42,328		7.36	%		7.36	%	$	3,972	$	42,266		Apr 2012		Apr 2032
Christiana Center(3)(4)	Bank		40,000		—		40,000		3.67	%		3.67	%		1,467		40,000		June 2012		June 2013
Paxton Towne Centre(3)(4)	Bank		50,000		—		50,000		3.75	%		3.75	%		1,876		50,000		July 2012		July 2013
Cherry Hill Mall	Life Insurance Co		179,598		—		179,598		5.42	%		5.42	%		13,510		177,689		Oct 2012		Oct 2012
Cherry Hill Mall Supplemental Loan	Life Insurance Co		53,412		—		53,412		5.51	%		5.51	%		3,030		53,003		Oct 2012		Oct 2012
Cumberland Mall Loan #1	CMBS		39,264		201		39,465		6.50	%		5.40	%		3,413		38,782		Nov 2012		Nov 2012
Dartmouth Mall	CMBS		59,394		—		59,394		4.95	%		4.95	%		4,484		57,594		June 2013		June 2013
Moorestown Mall	CMBS		54,515		—		54,515		4.95	%		4.95	%		4,115		52,863		June 2013		June 2013
Jacksonville Mall(3)	Bank		56,265		—		56,265		5.83	%		5.83	%		3,277		56,265		Sept 2013		Sept 2015
Logan Valley Mall(3)	Bank		63,000		—		63,000		5.79	%		5.79	%		3,649		63,000		Sept 2013		Sept 2015
Wyoming Valley Mall(3)	Bank		65,000		—		65,000		5.85	%		5.85	%		3,803		65,000		Sept 2013		Sept 2015
Francis Scott Key Mall(3)	Bank		55,000		—		55,000		5.25	%		5.25	%		2,885		55,000		Dec 2013		Dec 2013
Viewmont Mall(3)	Bank		48,000		—		48,000		5.25	%		5.25	%		2,518		48,000		Dec 2013		Dec 2013
Exton Square Mall	Life Insurance Co		67,971		—		67,971		7.50	%		7.50	%		5,873		66,732		Jan 2014		Jan 2014
Lycoming Mall	Bank		34,023		—		34,023		6.84	%		6.84	%		3,001		32,470		Jul 2014		Jul 2014
Springfield East(3)	Bank		2,216		—		2,216		5.39	%		5.39	%		92		2,061		Mar 2015		Mar 2020
Springfield Park(3)	Bank		2,602		—		2,602		5.39	%		5.39	%		108		2,419		Mar 2015		Mar 2020
Magnolia Mall	CMBS		59,249		—		59,249		5.33	%		5.33	%		4,413		54,842		July 2015		July 2015
Patrick Henry Mall	Life Insurance Co		90,938		—		90,938		6.34	%		6.34	%		7,743		83,210		Oct 2015		Oct 2015
Springfield Mall(3)	Bank		32,859		—		32,859		4.77	%		4.77	%		2,118		30,740		Nov 2015		Nov 2015
Willow Grove Park	Life Insurance Co		144,731		—		144,731		5.65	%		5.65	%		11,083		132,624		Dec 2015		Dec 2015
Valley Mall	CMBS		85,036		—		85,036		5.49	%		5.49	%		5,014		78,996		Mar 2016		Mar 2016
Woodland Mall	CMBS		150,494		—		150,494		5.58	%		5.58	%		10,760		140,484		Apr 2016		Apr 2016
801 Market Street(3)(4)	Bank		25,000		—		25,000		3.84	%		3.84	%		960		24,265		Jul 2016		Jul 2018
The Mall at Prince Georges	CMBS		150,000		—		150,000		5.51	%		5.51	%		8,269		150,000		June 2017		June 2017
Whitehall Mall	Life Insurance Co		5,641		—		5,641		7.00	%		7.00	%		574		4,145		Nov 2018		Nov 2018
Cumberland Mall Loan #2	Bank		2,170		—		2,170		5.00	%		5.00	%		390		—		Dec 2018		Dec 2018
New River Valley Mall(3)(4)	Bank		25,000		—		25,000		4.83	%		4.83	%		1,208		25,000		Jan 2019		Jan 2019
Valley View Mall	CMBS		31,345		—		31,345		5.95	%		5.95	%		2,290		27,161		July 2020		July 2020
Lehigh Valley Mall	Life Insurance Co		68,506		—		68,506		5.88	%		5.88	%		4,972		58,519		July 2020		July 2020
Red Rose Commons	CMBS		14,817		—		14,817		5.14	%		5.14	%		978		12,379		July 2021		July 2021
The Court at Oxford Valley	CMBS		30,000		—		30,000		5.56	%		5.56	%		1,668		25,782		July 2021		July 2021
Capital City Mall	Bank		65,750		—		65,750		5.30	%		5.30	%		4,379		54,715		Mar 2022		Mar 2022
Metroplex Shopping Center	CMBS		43,491		—		43,491		5.00	%		5.00	%		2,681		33,978		Oct 2023		Oct 2023
Total Fixed Rate Mortgage Loans			1,937,615		201		1,937,816		5.56	%		5.54	%		130,572		1,839,984

Page 28

Pennsylvania Real Estate Investment Trust

Debt Schedule as of March 31, 2012 (continued)

(in thousands)

		Proportionate Share(1)										Marked to Market
	Lender	Debt		Debt Premium/ (Discount)			Total		Interest Rate			Interest Rate (GAAP)			Annual Debt Service		Balance at Maturity		Initial Maturity Date		Fully Extended Maturity Date
Variable Rate Mortgage Loans
Christiana Center	Bank		4,447		—			4,447		2.09	%		2.09	%		860		4,257		June 2012		June 2013
Paxton Towne Centre	Bank		4,000		—			4,000		2.34	%		2.34	%		94		4,000		July 2012		July 2013
Pavilion East Associates	Bank		3,741		—			3,741		2.99	%		2.99	%		200		3,708		Aug 2012		Aug 2012
801 Market Street	Bank		2,336		—			2,336		2.34	%		2.34	%		685		—		Jul 2016		Jul 2018
New River Valley Mall	Bank		3,050		—			3,050		3.25	%		3.25	%		99		3,050		Jan 2019		Jan 2019
Total Variable Rate Mortgage Loans			17,574		—			17,574		2.58	%		2.58	%		1,938		15,015
Total Mortgage Loans		$	1,955,189	$	201		$	1,955,390		5.54	%		5.51	%	$	132,510	$	1,854,999
CONSOLIDATED MORTGAGE LOANS		$	1,751,316	$	201		$	1,751,517		5.51	%		5.49	%	$	115,147	$	1,639,002
UNCONSOLIDATED MORTGAGE LOANS			203,873		—			203,873		5.38	%		5.38	%		13,391		173,731
EXCHANGEABLE NOTES(5)			136,900		(342	)		136,558		4.00	%		5.87	%		5,476		136,900		June 2012		June 2012
2010 CREDIT FACILITY - FIXED RATE(6)(7)(8)			190,000		—			190,000		5.83	%		5.83	%		11,073		190,000		Mar 2014		Mar 2015
2010 CREDIT FACILITY - VARIABLE RATE(6)(7)			80,000		—			80,000		4.25	%		4.25	%		3,400		80,000		Mar 2014		Mar 2015
Total		$	2,362,089	$	(141	)	$	2,361,948		5.40	%		5.49	%	$	148,487	$	2,219,633
AMORTIZATION OF DEFERRED FINANCING FEES			—		—			—		—			0.40	%		—		—
EFFECTIVE INTEREST RATE		$	2,362,089	$	(141	)	$	2,361,948		5.40	%		5.89	%	$	148,487	$	2,219,633

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

⁽²⁾  This mortgage loan has passed its Anticipated Repayment Date. The final maturity date is April 2032.

⁽³⁾  All or a portion of the mortgage loan has been effectively swapped to the fixed interest rate presented.

⁽⁴⁾  A portion of the mortgage loan bears interest at a variable rate. See Variable Rate Mortgage Loans section of this table.

⁽⁵⁾  The marked to market interest rate includes the effect of deferred financing fee amortization and debt discount amortization.

⁽⁶⁾  Secured by first mortgage liens on 20 properties. See page 26 for property detail.

⁽⁷⁾  The 2010 Credit Facility consists of the 2010 Term Loan, with a balance of $240,000 and the Revolving Facility, with a balance of $30,000 as of March 31, 2012. The total available to borrow against the Revolving Facility is $220,000.

⁽⁸⁾  As of March 31, 2012, for presentation purposes, we have designated interest rate swap agreements to effectively fix $190,000 of the underlying LIBOR associated with the 2010 Credit Facility until March 10, 2013 at a current weighted average rate of 1.83% (excluding the spread on the related debt). Of that notional amount, $185,000 of this $190,000 is also covered by a forward starting swap that became effective on April 2, 2012 and remains effective until March 13, 2013 at a rate of 2.96%, excluding the spread on the related debt. Additionally, $15.4 million was subject to a LIBOR cap with a strike price of 2.50% which expired in April 2012.

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Pennsylvania Real Estate Investment Trust

Selected Debt Ratios⁽¹⁾

	March 31, 2012
Consolidated Liabilities to Gross Asset Value		66.18	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 70%
EBITDA to Interest Expense		1.94
EBITDA may not be less than 1.60 to 1.00
Adjusted EBITDA to Fixed Charges		1.62
Adjusted EBITDA may not be less than 1.35 to 1.00
Corporate Debt Yield		11.06	%
The ratio of EBITDA to total indebtedness may not be less than 9.50%
Facility Debt Yield		22.38	%
The ratio of NOI for Collateral Properties to Aggregate Outstanding Principal Amount(2)

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

⁽¹⁾ The amended, restated and consolidated senior secured credit agreement dated as of March 11, 2010, as amended on June 29, 2011 (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 Reports on Form 8-K dated March 11, 2010 and June 29, 2011. 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⁾  The Maximum Loan Availability is based on a Facility Debt Yield equal to or greater than 9.75%.

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Pennsylvania Real Estate Investment Trust

Shareholder Information

Ten Largest Institutional Shareholders:	Common Shares Held (1)
The Vanguard Group, Inc.		5,636,097
BlackRock Fund Advisors		4,468,542
Dreman Value Management LLC		2,526,920
State Street Global Advisors		1,788,029
Deutsche Investment Management Americas, Inc.		1,761,275
JPMorgan Asset Management, Inc.		1,324,041
Pacific Heights Asset Management LLC		1,275,000
Northern Trust Investments		1,219,387
Brookfield Investment Management, Inc.		1,008,351
Mellon Capital Management Corp.		853,569
TOTAL of Ten Largest Institutional:		21,861,211
TOTAL of all Institutional Holders:		38,944,322
Ten Largest as % of Total Institutional:		56.1	%

⁽¹⁾  Based on 13F and 13G filings as of March 31, 2012 or most recent filings.

Breakdown of Share & Unit Ownership: Shares Held	Most Recent		% of Outstanding			December 31, 2011
Institutional(1)		38,944,322		67.3	%		38,394,134
Retail(2)		13,831,326		23.9	%		14,547,505
Insiders(3)		5,064,204		8.8	%		5,064,204
TOTAL		57,839,852		100.0	%		58,005,843

⁽¹⁾  Based on 13F and 13G filings as of March 31, 2012 or most recent filings.

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

⁽³⁾ Insider holdings as of March 31, 2011 (Shares and OP Units only). See proxy statement dated April 27, 2011 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 (“FFO”), which is a non-GAAP measure commonly used by REITs, as income before gains and losses on sales of operating properties and extraordinary items (computed in accordance with GAAP); plus real estate depreciation; plus or minus adjustments for unconsolidated partnerships to reflect funds from operations on the same basis. We compute FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than we do. NAREIT guidance issued in 2003 provides that excluding impairment write downs of depreciable real estate is consistent with the definition of FFO. Certain regulatory staff had indicated, however, a view that impairment write downs were required to be included in FFO. In late 2011, NAREIT updated its guidance to reflect that certain regulatory staff has conveyed that it no longer holds that view, and NAREIT reiterated its established guidance that excluding such impairments is consistent with the NAREIT definition. In this report, prior period FFO amounts have been revised to reflect this updated NAREIT guidance regarding impairment write downs.

We use FFO and FFO per diluted share and OP Unit in measuring our performance against peers and as one of the performance measures for determining incentive compensation amounts earned under certain of our performance-based executive compensation programs. We compute FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than us.

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 our 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 our cash needs, including our ability to make cash distributions.

We believe that net income is the most directly comparable GAAP measurement to FFO. We believe that FFO is helpful to management and investors as a measure of operating performance because it excludes 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), including lease termination revenue, minus operating expenses (determined in accordance with GAAP) plus our share of revenue and operating expenses of our partnership investments, and includes real estate revenue and operating expenses from properties included in discontinued operations. 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. NOI excludes interest and other income, general and administrative expenses, interest expense, depreciation and amortization, gains on sales of interests in real estate, gains or sales of non-operating real estate, gains on sales of discontinued operations, gain on extinguishment of debt, impairment losses, project costs and other expenses

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.

Page 32

The Company believes that net income is the most directly comparable GAAP measurement to FAD. The Company believes FAD provides a meaningful indicator of its ability to fund cash needs and to make cash distributions to equity owners. In addition, the Company believes that to further understand its liquidity, FAD should be compared with its cash flow from operating activities determined in accordance with GAAP, as presented in its consolidated financial statements. The computation of FAD may not be comparable to FAD reported by other REITs or real estate companies and FAD does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, or as an alternative to net cash flow from operating activities (determined in accordance with GAAP), as a measure of our liquidity.

Page 33