Pennsylvania Real Estate Investment Trust (PRET) 8-K Completion of Acquisition or Disposition of Assets

Exhibit 99.1

Pennsylvania Real Estate Investment Trust ^® 

Supplemental Financial and Operating Information

Quarter Ended September 30, 2014

www.preit.com

NYSE: PEI

NYSE: PEIPRA, PEIPRB

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

September 30, 2014

Table of Contents
Introduction
Company Information	1
Market Capitalization and Capital Resources	2
Operating Results
Statement of Operations - Proportionate Consolidation Method - Quarters Ended September 30, 2014 and September 30, 2013	3
Statement of Operations - Proportionate Consolidation Method - Nine Months Ended September 30, 2014 and September 30, 2013	4
Statement of Net Operating Income - Quarters and Nine Months Ended September 30, 2014 and September 30, 2013	5
Computation of Earnings Per Share	6
Funds From Operations and Funds Available For Distribution - Quarters Ended September 30, 2014 and September 30, 2013	7
Funds From Operations and Funds Available For Distribution - Nine Months Ended September 30, 2014 and September 30, 2013	8
Operating Statistics
Leasing Activity Summary	9
Summarized Sales and Rent Per Square Foot and Occupancy Percentages	10
Mall Occupancy Percentage and Sales Per Square Foot	11
Top Twenty Tenants	12
Lease Expirations	13
Property Information	14
Department Store Lease Expirations	16
Balance Sheet
Condensed Balance Sheet - Proportionate Consolidation Method	18
Investment in Real Estate	19
Capital Expenditures	21
Debt Analysis	22
Debt Schedule	23
Selected Debt Ratios	24
Definitions	25
Forward Looking Statements	26

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 September 30, 2014, the Company owned interests in 43 retail properties, 39 of which are operating retail properties and four are development properties. The 39 operating retail properties have a total of 28.9 million square feet and include 32 enclosed malls and seven other retail properties. The operating properties are located in 11 states in the eastern half of the United States, primarily in the Mid-Atlantic region. 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:

Heather Crowell, Vice President of Corporate Communications

200 South Broad Street

Philadelphia, PA 19102

Telephone: (215) 875-0735

Fax: (215) 546-2504

Email: crowellh@preit.com

Research Coverage
Company	Analyst	Phone Number
Bank of America/Merrill Lynch	Craig Schmidt	(646) 855-3640
Barclays Capital	Ross Smotrich	(212) 526-2306
Citi Investment Research	Michael Bilerman	(212) 816-1383
	Christy McElroy	(212) 816-6981
Discern	David Wiggington	(646) 863-4177
Green Street Advisors	Daniel J. Busch	(949) 640-8780
JP Morgan	Michael W. Mueller	(212) 622-6689
Stifel Nicolaus	Nathan Isbee	(443) 224-1346
	Jennifer Hummert	(443) 224-1288
SunTrust Robinson Humphrey	Ki Bin Kim	(212) 303-4124

NOTE: Press release announcements are available on the Company's website at www.preit.com.

1

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands, except per share amounts)

	Quarter Ended September 30,						Year Ended December 31,
	2014			2013			2013			2012
TRADING INFORMATION
Common Shares
High Price per share	$	21.14		$	22.19		$	22.54		$	17.90
Low Price per share	$	18.65		$	17.71		$	14.20		$	10.49
Closing Share Price (at the end of period)	$	19.94		$	18.70		$	18.98		$	17.64
Series A Preferred Shares
High Price per share	$	26.79		$	26.73		$	28.06		$	27.33
Low Price per share	$	25.88		$	24.95		$	24.77		$	24.95
Closing Share Price (at the end of period)	$	26.45		$	25.55		$	25.16		$	26.28
Series B Preferred Shares
High Price per share	$	26.41		$	26.02		$	26.86		$	25.54
Low Price per share	$	25.07		$	23.62		$	23.05		$	24.51
Closing Share Price (at the end of period)	$	25.90		$	24.00		$	23.73		$	25.27
MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding	68,787			68,202			68,293			56,331
OP Units Outstanding	2,129			2,129			2,129			2,301
Total Common Shares and OP Units Outstanding	70,916			70,331			70,422			58,632
Equity Market Capitalization—Common Shares and OP Units	$	1,414,074		$	1,315,192		$	1,336,614		$	1,034,273
Series A Preferred Shares, Nominal Value	115,000			115,000			115,000			115,000
Series B Preferred Shares, Nominal Value	86,250			86,250			86,250			86,250
Total Equity Market Capitalization	$	1,615,324		$	1,516,442		$	1,537,864		$	1,235,523
DEBT CAPITALIZATION
Secured Debt Balance (1)	$	1,609,941		$	1,737,387		$	1,701,101		$	2,101,769
Unsecured Debt Balance (2) (3)	130,000			90,000			130,000			—
Debt Capitalization	1,739,941			1,827,387			1,831,101			2,101,769
TOTAL MARKET CAPITALIZATION	$	3,355,265		$	3,343,829		$	3,368,965		$	3,337,292
Equity Capitalization/Total Market Capitalization	48.1		%	45.4		%	45.6		%	37.0		%
Debt Capitalization/Total Market Capitalization	51.9		%	54.6		%	54.4		%	63.0		%
Unsecured Debt Balance/Total Debt	7.5		%	4.9		%	7.1		%	—		%
DISTRIBUTIONS PER COMMON SHARE
Non-Dividend Distributions	(4)			$	0.18		$	0.74		$	0.63
Distributions per common share	$	0.20		$	0.18		$	0.74		$	0.63
Annualized Dividend Yield (5)	4.0		%	3.9		%	3.9		%	3.6		%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	59,057		$	30,585		$	41,867		$	38,873
Revolving Facility	400,000			400,000			400,000			250,000
Amount Outstanding	—			(90,000		)	(130,000		)	—
Letter of Credit	(7,135		)	—			—			—
Available Revolving Facility (6)	392,865			310,000			270,000			250,000
Term Loans	250,000			—			—			182,000
Amount Borrowed	(130,000		)	—			—			(182,000		)
Available Term Loans (6)	120,000			—			—			—
TOTAL	$	571,922		$	340,585		$	311,867		$	288,873
Shelf Registration	$	568,750		$	568,750		$	568,750		$	798,750

⁽¹⁾  The secured debt balance includes $182,000 in Term Loans outstanding as of December 31, 2012.

⁽²⁾  The unsecured debt balance includes a Revolving Facility balance of $130,000 as of December 31, 2013 and $90,000 as of September 30, 2013.

⁽³⁾  The unsecured debt balance includes a Term Loan balance of $130,000 as of September 30, 2014.

⁽⁴⁾  Tax status of 2014 dividend payments will be available in January 2015.

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

⁽⁶⁾  The available Credit Facility borrowings are subject to covenants that may restrict amounts that can be borrowed.  Following recent property sales, the NOI from the Company’s remaining unencumbered properties is at a level such that the maximum unsecured amount that the Company may currently borrow within the Unencumbered Debt Yield covenant, including under the $400.0 million 2013 Revolving Facility and the $250.0 million aggregate 2014 Term Loans, is an aggregate of $561.4 million.    On April 17, 2013, the Company entered into the 2013 Revolving Facility.

2

Pennsylvania Real Estate Investment Trust

Statement of Operations - Quarters Ended September 30, 2014 and September 30, 2013

Proportionate Consolidation Method

(in thousands)

	Quarter Ended September 30, 2014									Quarter Ended September 30, 2013
	Continuing Operations									Continuing Operations
	GAAP			PREIT’s share of unconsolidated partnerships (1)			Total			GAAP			PREIT’s share of unconsolidated partnerships (1)			Discontinued operations			Total
REVENUE:
Base rent	$	66,908		$	8,764		$	75,672		$	69,851		$	6,813		$	1,979		$	78,643
Expense reimbursements	31,057			3,663			34,720			33,275			2,843			457			36,575
Percentage rent	542			12			554			593			18			—			611
Lease termination revenue	644			—			644			336			10			—			346
Other real estate revenue	2,638			324			2,962			3,011			296			55			3,362
Total real estate revenue	101,789			12,763			114,552			107,066			9,980			2,491			119,537
Other income	3,348			—			3,348			3,208			—			—			3,208
Total revenue	105,137			12,763			117,900			110,274			9,980			2,491			122,745
EXPENSES:
Operating expenses:
CAM and real estate taxes	(33,092		)	(3,112		)	(36,204		)	(36,416		)	(2,169		)	(719		)	(39,304		)
Utilities	(5,520		)	(376		)	(5,896		)	(6,859		)	(207		)	(101		)	(7,167		)
Other operating expenses	(4,315		)	(811		)	(5,126		)	(4,609		)	(595		)	(289		)	(5,493		)
Total operating expenses	(42,927		)	(4,299		)	(47,226		)	(47,884		)	(2,971		)	(1,109		)	(51,964		)
Depreciation and amortization	(34,240		)	(2,504		)	(36,744		)	(35,770		)	(1,891		)	(345		)	(38,006		)
Other expenses:
General and administrative expenses	(8,373		)	—			(8,373		)	(8,116		)	—			—			(8,116		)
Impairment of assets	(2,297		)	—			(2,297		)	(6,304		)	—			—			(6,304		)
Provision for employee separation expense	(85		)	—			(85		)	—			—			—			—
Acquisition costs and other expenses	(723		)	(20		)	(743		)	(462		)	—			—			(462		)
Total other expenses	(11,478		)	(20		)	(11,498		)	(14,882		)	—			—			(14,882		)
Interest expense, net (2)	(20,071		)	(2,734		)	(22,805		)	(23,477		)	(2,773		)	(494		)	(26,744		)
Total expenses	(108,716		)	(9,557		)	(118,273		)	(122,013		)	(7,635		)	(1,948		)	(131,596		)
Loss before equity in income of partnerships, loss on sale of interest in real estate, discontinued operations and gains on sales discontinued operations	(3,579		)	3,206			(373		)	(11,739		)	2,345			543			(8,851		)
Equity in income of partnerships	3,206			(3,206		)	—			2,345			(2,345		)	—			—
Loss on sale of interest in real estate	(513		)	—			(513		)	—			—			—			—
Loss from continuing operations	(886		)	—			(886		)	(9,394		)	—			543			(8,851		)
Discontinued operations:
Operating results from discontinued operations	—			—			—			543			—			(543		)	—
Impairment of assets of discontinued operations	—			—			—			(23,662		)	—			—			(23,662		)
Gains on sales of discontinued operations	—			—			—			45,097			—			—			45,097
Income from discontinued operations	—			—			—			21,978			—			(543		)	21,435
Net (loss) income	(886		)	—			(886		)	12,584			—			—			12,584
Less: net (loss) income attributed to noncontrolling interest	27			—			27			(382		)	—			—			(382		)
Net (loss) income attributable to PREIT	$	(859	)	$	—		$	(859	)	$	12,202		$	—		$	—		$	12,202
Less: preferred share dividends	(3,962		)	—			(3,962		)	(3,962		)	—			—			(3,962		)
Net (loss) income attributable to PREIT common shareholders	$	(4,821	)	$	—		$	(4,821	)	$	8,240		$	—		$	—		$	8,240

⁽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 $201 and $331 for the quarters ended September 30, 2014 and 2013, respectively.

3

Pennsylvania Real Estate Investment Trust

Statement of Operations - Nine Months Ended September 30, 2014 and September 30, 2013

Proportionate Consolidation Method

(in thousands)

	Nine Months Ended September 30, 2014									Nine Months Ended September 30, 2013
	Continuing Operations									Continuing Operations
	GAAP			PREIT’s share of unconsolidated partnerships (1)			Total			GAAP			PREIT’s share of unconsolidated partnerships (1)			Discontinued operations			Total
REVENUE:
Base rent	$	209,896		$	22,550		$	232,446		$	207,560		$	20,336		$	7,456		$	235,352
Expense reimbursements	96,287			9,787			106,074			95,067			8,361			1,610			105,038
Percentage rent	1,455			80			1,535			2,159			89			26			2,274
Lease termination revenue	898			12			910			567			27			47			641
Other real estate revenue	8,005			930			8,935			8,438			870			240			9,548
Total real estate revenue	316,541			33,359			349,900			313,791			29,683			9,379			352,853
Other income	4,807			—			4,807			5,491			—			—			5,491
Total revenue	321,348			33,359			354,707			319,282			29,683			9,379			358,344
EXPENSES:
Operating expenses:
CAM and real estate taxes	(107,723		)	(7,911		)	(115,634		)	(105,957		)	(6,518		)	(3,015		)	(115,490		)
Utilities	(19,571		)	(807		)	(20,378		)	(16,986		)	(545		)	(260		)	(17,791		)
Other operating expenses	(11,713		)	(1,978		)	(13,691		)	(12,255		)	(1,705		)	(714		)	(14,674		)
Total operating expenses	(139,007		)	(10,696		)	(149,703		)	(135,198		)	(8,768		)	(3,989		)	(147,955		)
Depreciation and amortization	(107,610		)	(6,069		)	(113,679		)	(104,474		)	(5,529		)	(1,074		)	(111,077		)
Other expenses:
General and administrative expenses	(26,224		)	—			(26,224		)	(26,578		)	—			—			(26,578		)
Impairment of assets	(19,695		)	—			(19,695		)	(6,304		)	—			—			(6,304		)
Provision for employee separation expense	(4,961		)	—			(4,961		)	(2,314		)	—			—			(2,314		)
Acquisition costs and other expenses	(3,329		)	(20		)	(3,349		)	(862		)	—			—			(862		)
Total other expenses	(54,209		)	(20		)	(54,229		)	(36,058		)	—			—			(36,058		)
Interest expense, net (2)	(61,792		)	(8,182		)	(69,974		)	(78,503		)	(8,305		)	(1,753		)	(88,561		)
Total expenses	(362,618		)	(24,967		)	(387,585		)	(354,233		)	(22,602		)	(6,816		)	(383,651		)
Loss before equity in income of partnerships, net loss on sales of interest in real estate, discontinued operations and gains on sales discontinued operations	(41,270		)	8,392			(32,878		)	(34,951		)	7,081			2,563			(25,307		)
Equity in income of partnerships	8,392			(8,392		)	—			7,081			(7,081		)	—			—
Net loss on sales of interest in real estate	(414		)	—			(414		)	—			—			—			—
Loss from continuing operations	(33,292		)	—			(33,292		)	(27,870		)	—			2,563			(25,307		)
Discontinued operations:
Operating results from discontinued operations	—			—			—			2,563			—			(2,563		)	—
Impairment of assets of discontinued operations	—			—			—			(23,662		)	—			—			(23,662		)
Gains on sales of discontinued operations	—			—			—			78,351			—			—			78,351
Income from discontinued operations	—			—			—			57,252			—			(2,563		)	54,689
Net (loss) income	(33,292		)	—			(33,292		)	29,382			—			—			29,382
Less: net loss (income) attributed to noncontrolling interest	1,004			—			1,004			(1,073		)	—			—			(1,073		)
Net (loss) income attributable to PREIT	$	(32,288	)	$	—		$	(32,288	)	$	28,309		$	—		$	—		$	28,309
Less: preferred share dividends	(11,886		)	—			(11,886		)	(11,886		)	—			—			(11,886		)
Net (loss) income attributable to PREIT common shareholders	$	(44,174	)	$	—		$	(44,174	)	$	16,423		$	—		$	—		$	16,423

⁽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 $494 and $609 for the nine months endedSeptember 30, 2014 and 2013, respectively.

4

Pennsylvania Real Estate Investment Trust

Statement of Net Operating Income ⁽¹⁾ 

(in thousands)

	Quarter Ended September 30, 2014									Quarter Ended September 30, 2013
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	69,762		$	5,910		$	75,672		$	67,856		$	10,787		$	78,643
Expense reimbursements	32,893			1,827			34,720			32,877			3,698			36,575
Percentage rent	524			30			554			604			7			611
Lease termination revenue	252			392			644			294			52			346
Other real estate revenue	2,529			433			2,962			2,783			579			3,362
TOTAL REAL ESTATE REVENUE	105,960			8,592			114,552			104,414			15,123			119,537
Operating expenses:
CAM and real estate taxes	(32,801		)	(3,403		)	(36,204		)	(33,448		)	(5,856		)	(39,304		)
Utilities	(5,472		)	(424		)	(5,896		)	(6,201		)	(966		)	(7,167		)
Other operating expenses	(4,004		)	(1,122		)	(5,126		)	(4,645		)	(848		)	(5,493		)
TOTAL OPERATING EXPENSES	(42,277		)	(4,949		)	(47,226		)	(44,294		)	(7,670		)	(51,964		)
NET OPERATING INCOME	$	63,683		$	3,643		$	67,326		$	60,120		$	7,453		$	67,573
	2014			% change 2013 to 2014			2013
Same Store NOI variance
Same Store NOI (2)	$	63,683		5.9%			$	60,120
Same Store NOI excluding lease terminations	$	63,431		6.0%			$	59,826

	Nine Months Ended September 30, 2014									Nine Months Ended September 30, 2013
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	208,933		$	23,513		$	232,446		$	202,605		$	32,747		$	235,352
Expense reimbursements	97,999			8,075			106,074			94,198			10,840			105,038
Percentage rent	1,490			45			1,535			2,181			93			2,274
Lease termination revenue	517			393			910			514			127			641
Other real estate revenue	7,417			1,518			8,935			7,718			1,830			9,548
TOTAL REAL ESTATE REVENUE	316,356			33,544			349,900			307,216			45,637			352,853
Operating expenses:
CAM and real estate taxes	(101,781		)	(13,853		)	(115,634		)	(97,772		)	(17,718		)	(115,490		)
Utilities	(18,089		)	(2,289		)	(20,378		)	(15,529		)	(2,262		)	(17,791		)
Other operating expenses	(10,804		)	(2,887		)	(13,691		)	(11,837		)	(2,837		)	(14,674		)
TOTAL OPERATING EXPENSES	(130,674		)	(19,029		)	(149,703		)	(125,138		)	(22,817		)	(147,955		)
NET OPERATING INCOME	$	185,682		$	14,515		$	200,197		$	182,078		$	22,820		$	204,898
	2014			% change 2013 to 2014			2013
Same Store NOI variance
Same Store NOI (2)	$	185,682		2.0%			$	182,078
Same Store NOI excluding lease terminations	$	185,165		2.0%			$	181,564

⁽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⁾ Same Store NOI definition can be found on page 25.

5

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share

(in thousands, except per share amounts)

	Quarter Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Loss from continuing operations	$	(886	)	$	(9,394	)	$	(33,292	)	$	(27,870	)
Noncontrolling interest	27			277			1,004			954
Dividends on preferred shares	(3,962		)	(3,962		)	(11,886		)	(11,886		)
Dividends on unvested restricted shares	(87		)	(108		)	(293		)	(319		)
Loss from continuing operations used to calculate loss per share - basic and diluted	$	(4,908	)	$	(13,187	)	$	(44,467	)	$	(39,121	)
Income from discontinued operations	$	—		$	21,978		$	—		$	57,252
Noncontrolling interest	—			(659		)	—			(2,027		)
Income from discontinued operations used to calculate earnings per share - basic and diluted	$	—		$	21,319		$	—		$	55,225
Basic and diluted (loss) earnings per share
Loss from continuing operations	$	(0.07	)	$	(0.20	)	$	(0.65	)	$	(0.63	)
Income from discontinued operations	—			0.32			—			0.89
	$	(0.07	)	$	0.12		$	(0.65	)	$	0.26
Weighted average common shares outstanding	68,331			67,579			68,172			62,330
Weighted average unvested restricted shares	—			—			—			—
Weighted average shares outstanding - basic	68,331			67,579			68,172			62,330
Weighted average effect of common share equivalents (1)	—			—			—			—
Total weighted average shares outstanding - diluted	68,331			67,579			68,172			62,330

⁽¹⁾  The Company had net losses from continuing operations for all periods presented. Therefore, the effect of common share equivalents of 672 and 825 for the quarters ended September 30, 2014 and 2013, respectively, and 596 and 851 for the nine months ended September 30, 2014 and 2013, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive.

6

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)

	Quarter Ended September 30, 2014									Quarter Ended September 30, 2013
	Continuing Operations									Continuing Operations
	Consolidated			PREIT’s share of unconsolidated partnerships			Total			Consolidated			PREIT’s share of unconsolidated partnerships			Discontinued operations			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue	$	101,789		$	12,763		$	114,552		$	107,066		$	9,980		$	2,491		$	119,537
Operating expenses	(42,927		)	(4,299		)	(47,226		)	(47,884		)	(2,971		)	(1,109		)	(51,964		)
NET OPERATING INCOME	58,862			8,464			67,326			59,182			7,009			1,382			67,573
General and administrative expenses	(8,373		)	—			(8,373		)	(8,116		)	—			—			(8,116		)
Provision for employee separation expense	(85		)	—			(85		)	—			—			—			—
Other income	3,348			—			3,348			3,208			—			—			3,208
Acquisition costs and other expenses	(723		)	(20		)	(743		)	(462		)	—			—			(462		)
Interest expense, net	(20,071		)	(2,734		)	(22,805		)	(23,477		)	(2,773		)	(494		)	(26,744		)
Depreciation on non real estate assets	(363		)	—			(363		)	(253		)	—			—			(253		)
Dividends on preferred shares	(3,962		)	—			(3,962		)	(3,962		)	—			—			(3,962		)
FFO	28,633			5,710			34,343			26,120			4,236			888			31,244
Depreciation on real estate assets	(33,877		)	(2,504		)	(36,381		)	(35,517		)	(1,891		)	(345		)	(37,753		)
Equity in income of partnerships	3,206			(3,206		)	—			2,345			(2,345		)	—			—
Impairment of assets	(2,297		)	—			(2,297		)	(6,304		)	—			—			(6,304		)
Loss on sale of interest in real estate	(513		)	—			(513		)	—			—			—			—
Operating results from discontinued operations	—			—			—			543			—			(543		)	—
Impairment of assets of discontinued operations	—			—			—			(23,662		)	—			—			(23,662		)
Gains on sales of discontinued operations	—			—			—			45,097			—			—			45,097
Preferred share dividends	3,962			—			3,962			3,962			—			—			3,962
Net (loss) income	$	(886	)	$	—		$	(886	)	$	12,584		$	—		$	—		$	12,584
FFO	$	28,633		$	5,710		$	34,343		$	26,120		$	4,236		$	888		$	31,244
Acquisition costs	429			—			429			—			—			—			—
Provision for employee separation expenses	85			—			85			—			—			—			—
Loss on hedge ineffectiveness	117			—			117			727			—			—			727
Accelerated amortization of deferred financing costs	—			—			—			50			—			—			50
FFO AS ADJUSTED	$	29,264		$	5,710		$	34,974		$	26,897		$	4,236		$	888		$	32,021
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO AS ADJUSTED	$	29,264		$	5,710		$	34,974		$	26,897		$	4,236		$	888		$	32,021
Adjustments:
Straight line rent	(341		)	(3		)	(344		)	(289		)	(41		)	15			(315		)
Recurring capital expenditures	(6,195		)	(303		)	(6,498		)	(5,427		)	(278		)	(110		)	(5,815		)
Tenant allowances	(8,597		)	(405		)	(9,002		)	(5,068		)	(20		)	—			(5,088		)
Capitalized leasing costs	(1,394		)	—			(1,394		)	(1,180		)	—			—			(1,180		)
Amortization of above- and below-market lease intangibles	(205		)	(52		)	(257		)	(292		)	(21		)	(4		)	(317		)
FAD	$	12,532		$	4,947		$	17,479		$	14,641		$	3,876		$	789		$	19,306
Weighted average number of shares outstanding							68,331												67,579
Weighted average effect of full conversion of OP Units							2,129												2,136
Effect of common share equivalents							672												825
Total weighted average shares outstanding, including OP Units							71,132												70,540
FFO PER DILUTED SHARE AND OP UNIT							$	0.48											$	0.44
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED							$	0.49											$	0.45
FAD PER DILUTED SHARE AND OP UNIT							$	0.25											$	0.27
DIVIDEND PER COMMON SHARE							$	0.20											$	0.18

7

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)

	Nine Months Ended September 30, 2014										Nine Months Ended September 30, 2013
	Continuing Operations										Continuing Operations
	Consolidated			PREIT’s share of unconsolidated partnerships			Total				Consolidated			PREIT’s share of unconsolidated partnerships			Discontinued operations			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue	$	316,541		$	33,359		$	349,900			$	313,791		$	29,683		$	9,379		$	352,853
Operating expenses	(139,007		)	(10,696		)	(149,703		)		(135,198		)	(8,768		)	(3,989		)	(147,955		)
NET OPERATING INCOME	177,534			22,663			200,197				178,593			20,915			5,390			204,898
General and administrative expenses	(26,224		)	—			(26,224		)		(26,578		)	—			—			(26,578		)
Provision for employee separation expense	(4,961		)	—			(4,961		)		(2,314		)	—			—			(2,314		)
Other income	4,807			—			4,807				5,491			—			—			5,491
Project costs and other expenses	(3,329		)	(20		)	(3,349		)		(862		)	—			—			(862		)
Interest expense, net	(61,792		)	(8,182		)	(69,974		)		(78,503		)	(8,305		)	(1,753		)	(88,561		)
Depreciation on non real estate assets	(1,174		)	—			(1,174		)		(801		)	—			—			(801		)
Dividends on preferred shares	(11,886		)	—			(11,886		)		(11,886		)	—			—			(11,886		)
FFO	72,975			14,461			87,436				63,140			12,610			3,637			79,387
Depreciation on real estate assets	(106,436		)	(6,069		)	(112,505		)		(103,673		)	(5,529		)	(1,074		)	(110,276		)
Equity in income of partnerships	8,392			(8,392		)	—				7,081			(7,081		)	—			—
Impairment of assets	(19,695		)	—			(19,695		)		(6,304		)	—			—			(6,304		)
Net loss on sales of interest in real estate	(414		)	—			(414		)		—			—			—			—
Operating results from discontinued operations	—			—			—				2,563			—			(2,563		)	—
Impairment of assets of discontinued operations	—			—			—				(23,662		)	—			—			(23,662		)
Gains on sales of discontinued operations	—			—			—				78,351			—			—			78,351
Dividends on preferred shares	11,886			—			11,886				11,886			—			—			11,886
Net (loss) income	$	(33,292	)	$	—		$	(33,292	)		$	29,382		$	—		$	—		$	29,382
FFO	$	72,975		$	14,461		$	87,436			$	63,140		$	12,610		$	3,637		$	79,387
Acquisition costs	2,514			—			2,514				—			—			—			—
Provision for employee separation expenses	4,961			—			4,961				2,314			—			—			2,314
Loss on hedge ineffectiveness	1,354			—			1,354				3,409			—			—			3,409
Accelerated amortization of deferred financing costs	—			—			—				1,076			—			—			1,076
FFO AS ADJUSTED	$	81,804		$	14,461		$	96,265			$	69,939		$	12,610		$	3,637		$	86,186
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO AS ADJUSTED	$	81,804		$	14,461		$	96,265			$	69,939		$	12,610		$	3,637		$	86,186
Adjustments:
Straight line rent	(1,164		)	(43		)	(1,207		)		(1,085		)	(113		)	53			(1,145		)
Recurring capital expenditures	(9,507		)	(332		)	(9,839		)		(7,791		)	(481		)	(257		)	(8,529		)
Tenant allowances	(19,755		)	(523		)	(20,278		)		(13,777		)	(201		)	(39		)	(14,017		)
Capitalized leasing costs	(4,223		)	—			(4,223		)		(3,902		)	—			—			(3,902		)
Amortization of above- and below-market lease intangibles	(896		)	(95		)	(991		)		(662		)	(72		)	(14		)	(748		)
FAD	$	46,259		$	13,468		$	59,727			$	42,722		$	11,743		$	3,380		$	57,845
Weighted average number of shares outstanding							68,172													62,330
Weighted average effect of full conversion of OP Units							2,129													2,215
Effect of common share equivalents							596													851
Total weighted average shares outstanding, including OP Units							70,897													65,396
FFO PER DILUTED SHARE AND OP UNIT							$	1.23												$	1.21
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED							$	1.36												$	1.32
FAD PER DILUTED SHARE AND OP UNIT							$	0.84												$	0.88
DIVIDEND PER COMMON SHARE							$	0.60												$	0.54
PAYOUT RATIOS
Payout ratio of FFO							43.7		%	(1)										40.9		%	(2)
Payout ratio of FFO as adjusted							40.8		%	(1)										36.5		%	(2)
Payout ratio of FAD							70.8		%	(1)										62.5		%	(2)

⁽¹⁾  Twelve months ended September 30, 2014.

⁽²⁾  Twelve months ended September 30, 2013.

8

Pennsylvania Real Estate Investment Trust

2014 Leasing Activity Summary

			Avg Gross Rent psf				Change in Gross Rent psf					Annualized Tenant Improvements psf (2)
	Number	GLA	Previous		New(1)		Dollar			%
New Leases - non anchor tenants less than 10k sf: (3)
1st Quarter	39	81,690	N/A		$	48.07	$	48.07		N/A		$	5.20
2nd Quarter	52	152,596	N/A		41.71		41.71			N/A		7.25
3rd Quarter	44	114,791	N/A		43.00		43.00			N/A		7.15
Total/Average	135	349,077	N/A		$	43.62	$	43.62		N/A		$	6.74
New Leases - non anchor tenants 10k sf or greater: (3)
1st Quarter	2	25,971	N/A		$	12.50	$	12.50		N/A		$	5.61
2nd Quarter	11	179,206	N/A		25.31		25.31			N/A		5.90
3rd Quarter	4	93,568	N/A		22.19		22.19			N/A		2.98
Total/Average	17	298,745	N/A		$	23.22	$	23.22		N/A		$	4.96
Renewals - non anchor tenants less than 10k sf : (4)
1st Quarter	48	145,510	$	36.02	$	38.68	$	2.66		7.4	%	$	—
2nd Quarter	105	286,783	33.75		35.27		1.52			4.5	%	—
3rd Quarter	79	188,814	39.00		40.29		1.29			3.3	%	0.16
Total/Average	232	621,107	$	35.88	$	37.59	$	1.72		4.8	%	$	0.05
Renewals - non anchor tenants 10k sf or greater: (4)
1st Quarter	6	107,781	$	16.22	$	17.04	$	0.82		5.1	%	$	—
2nd Quarter	4	124,249	17.51		18.90		1.39			7.9	%	—
3rd Quarter	3	63,256	17.18		15.64		(1.54		)	(9.0	)%	—
Total/Average	13	295,286	$	16.97	$	17.52	$	0.55		3.3	%	$	—
New Leases - Anchor Tenants
1st Quarter	1	52,055	N/A		$	7.50	$	7.50		N/A		$	4.00
2nd Quarter	1	98,391	N/A		15.34		15.34			N/A		8.33
3rd Quarter	1	71,888	N/A		22.50		22.50			N/A		3.67
Total/Average	3	222,334	N/A		$	15.82	$	15.82		N/A		$	5.81
Renewals - Anchor Tenants
1st Quarter	1	101,476	$	2.79	$	2.80	$	0.01		0.4	%	$	—
2nd Quarter	1	77,688	2.85		2.92		0.07			2.5	%	—
3rd Quarter	1	96,357	4.62		4.62		—			—	%	—
Total/Average	3	275,521	$	3.45	$	3.47	$	0.02		0.7	%	$	—

⁽¹⁾  New rent is the initial amount payable upon rent commencement. In certain cases, a lower rent may be payable until certain conditions in the lease are satisfied.

⁽²⁾  These leasing costs are presented as annualized costs per square foot and are spread uniformly over the initial lease term.

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

⁽⁴⁾  This category includes expansions and lease extensions.

9

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages

	September 30, 2014										September 30, 2013											Change
	% Rolling 12 Mo. NOI		Avg. Comp Sales	Avg. Gross Rent(1)(2)	Occ. Cost		Occupancy				% Rolling 12 Mo. NOI		Avg. Comp Sales	Avg. Gross Rent(1)(2)		Occ. Cost		Occupancy				Avg. Comp Sales		Avg. Gross Rent(1)(2)		Occ. Cost		Occupancy
							Total		Non-Anchor									Total		Non-Anchor								Total		Non-Anchor
Premier Malls	33.6	%	$518	$68.99	13.7	%	96.8	%	95.2	%	31.9	%	$532	$	66.09	12.9	%	97.5	%	96.2	%	(2.6	)%	4.4	%	0.8	%	(0.7	)%	(1.0	)%
Core Growth Malls	43.8	%	$351	$42.85	13.1	%	96.0	%	92.2	%	41.7	%	$358	$	41.59	12.6	%	95.6	%	91.3	%	(2.0	)%	3.0	%	0.5	%	0.4	%	0.9	%
Opportunistic Malls	8.3	%	$261	$27.21	11.5	%	91.9	%	88.0	%	8.6	%	$267	$	26.84	11.2	%	89.8	%	84.8	%	(2.2	)%	1.4	%	0.3	%	2.1	%	3.2	%
Non Core Malls	2.6	%	$279	$28.85	11.6	%	95.2	%	87.7	%	2.7	%	$282	$	27.86	11.0	%	94.7	%	86.5	%	(1.1	)%	3.6	%	0.6	%	0.5	%	1.2	%
Total Same Store Malls	88.3	%	$384	$46.86	13.1	%	95.4	%	92.0	%	84.9	%	$393	$	45.42	12.5	%	94.9	%	91.2	%	(2.3	)%	3.2	%	0.6	%	0.5	%	0.8	%
Non Same Store Mall	4.6	%	$389	$51.12	15.0	%	74.2	%	77.6	%	4.4	%	$354	$	49.28	15.3	%	77.1	%	78.7	%	9.9	%	3.7	%	(0.3	)%	(2.9	)%	(1.1	)%
Total Malls	92.9	%	$384	$46.98	13.2	%	94.1	%	91.4	%	89.3	%	$391	$	45.54	12.6	%	93.7	%	90.6	%	(1.8	)%	3.1	%	0.6	%	0.4	%	0.8	%
Other Retail Properties	4.4	%	N/A	$18.27	N/A		96.0	%	94.6	%	4.0	%	N/A	$	18.34	N/A		94.5	%	92.5	%	N/A		(0.4	)%	N/A		1.5	%	2.1	%
Total Retail Properties	97.3	%	N/A	$41.58	N/A		94.3	%	91.8	%	93.3	%	N/A	$	40.81	N/A		93.7	%	90.9	%	N/A		1.9	%	N/A		0.6	%	0.9	%
Sold Properties (3)	2.3	%	N/A	N/A	N/A		N/A		N/A		3.6	%	N/A	$	25.45	N/A		90.4	%	86.1	%	N/A		N/A		N/A		N/A		N/A
Other Properties	0.4	%	N/A	N/A	N/A		N/A		N/A		3.1	%	N/A	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Total Portfolio	100.0	%		$41.58			94.3	%	91.8	%	100.0	%		$	39.89			93.5	%	90.6	%			4.2	%			0.8	%	1.2	%

⁽¹⁾  Average gross rent for malls includes all non-anchor space owned by the Company and leased to tenants that occupy individual spaces of 10,000 square feet or less. Average gross rent for other retail properties includes all non-anchor space owned by the Company regardless of size.

⁽²⁾  Average gross rent for mall tenants greater than 10,000 sf was $18.41 per square foot as of September 30, 2014 and $18.00 per square foot as of September 30, 2013.

⁽³⁾  Includes Chambersburg Mall, Nittany Mall, North Hanover Mall, and South Mall.

10

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot

	September 30, 2014						September 30, 2013						Change
	Avg Comp Sales  (1)		Total Occ %		Non Anchor Occup. %		Avg Comp Sales(1)		Total Occ %		Non Anchor Occup. %		Avg Comp Sales  (1)		Total Occ %		Non Anchor Occup. %
Premier Malls
Cherry Hill Mall	$	627	95.1	%	94.1	%	$	629	94.4	%	93.3	%	(0.3	)%	0.7	%	0.8	%
Lehigh Valley Mall	528		96.8	%	94.7	%	567		98.3	%	97.2	%	(6.9	)%	(1.5	)%	(2.5	)%
Woodland Mall	524		98.8	%	98.8	%	519		99.0	%	99.0	%	1.0	%	(0.2	)%	(0.2	)%
Jacksonville Mall	454		97.4	%	94.9	%	465		99.7	%	99.3	%	(2.4	)%	(2.3	)%	(4.4	)%
Willow Grove Park	430		96.2	%	92.2	%	440		98.1	%	96.1	%	(2.3	)%	(1.9	)%	(3.9	)%
Dartmouth Mall	422		98.5	%	97.6	%	439		96.7	%	94.6	%	(3.9	)%	1.8	%	3.0	%
Premier Malls Subtotal	$	518	96.8	%	95.2	%	$	532	97.5	%	96.2	%	(2.6	)%	(0.7	)%	(1.0	)%
Core Growth Malls
The Mall at Prince Georges	$	438	99.3	%	98.5	%	$	390	95.9	%	91.4	%	12.3	%	3.4	%	7.1	%
Wyoming Valley Mall	387		95.8	%	87.9	%	396		96.8	%	90.8	%	(2.3	)%	(1.0	)%	(2.9	)%
Springfield Mall	387		95.2	%	95.2	%	403		92.9	%	92.9	%	(4.0	)%	2.3	%	2.3	%
Patrick Henry Mall	383		97.0	%	95.7	%	391		95.7	%	93.7	%	(2.0	)%	1.3	%	2.0	%
Viewmont Mall	382		94.0	%	84.3	%	365		99.3	%	98.1	%	4.7	%	(5.3	)%	(13.8	)%
Valley View Mall	370		95.4	%	93.5	%	382		97.1	%	96.0	%	(3.1	)%	(1.7	)%	(2.5	)%
Capital City Mall	366		96.7	%	94.4	%	381		97.0	%	94.9	%	(3.9	)%	(0.3	)%	(0.5	)%
Valley Mall	363		97.6	%	96.0	%	350		95.4	%	92.0	%	3.7	%	2.2	%	4.0	%
Moorestown Mall	354		93.1	%	84.8	%	348		87.3	%	68.3	%	1.7	%	5.8	%	16.5	%
Magnolia Mall	348		98.4	%	96.4	%	343		99.0	%	97.7	%	1.5	%	(0.6	)%	(1.3	)%
Francis Scott Key Mall	346		97.7	%	96.3	%	360		98.7	%	97.8	%	(3.9	)%	(1.0	)%	(1.5	)%
Crossroads Mall	330		96.7	%	92.8	%	350		95.9	%	91.1	%	(5.7	)%	0.8	%	1.7	%
Plymouth Meeting Mall	318		91.5	%	87.1	%	332		90.1	%	84.8	%	(4.2	)%	1.4	%	2.3	%
Exton Square Mall	299		95.3	%	89.6	%	322		94.8	%	88.0	%	(7.1	)%	0.5	%	1.6	%
Cumberland Mall	298		94.3	%	90.5	%	320		94.9	%	91.6	%	(6.9	)%	(0.6	)%	(1.1	)%
Logan Valley Mall	291		95.9	%	90.3	%	320		97.4	%	93.9	%	(9.1	)%	(1.5	)%	(3.6	)%
Gadsden Mall	286		98.2	%	95.6	%	294		97.4	%	93.5	%	(2.7	)%	0.8	%	2.1	%
Core Growth Malls Subtotal	$	351	96.0	%	92.2	%	$	358	95.6	%	91.3	%	(2.0	)%	0.4	%	0.9	%
Opportunistic Malls
Washington Crown Center	$	321	89.4	%	80.4	%	$	273	85.8	%	73.7	%	17.6	%	3.6	%	6.7	%
Beaver Valley Mall	269		95.9	%	91.1	%	272		93.8	%	86.5	%	(1.1	)%	2.1	%	4.6	%
Wiregrass Commons Mall	263		93.0	%	89.8	%	273		94.2	%	91.6	%	(3.7	)%	(1.2	)%	(1.8	)%
New River Valley Mall	258		89.3	%	96.0	%	278		88.0	%	96.8	%	(7.2	)%	1.3	%	(0.8	)%
Lycoming Mall	247		97.0	%	94.1	%	269		94.5	%	89.5	%	(8.2	)%	2.5	%	4.6	%
Voorhees Town Center	236		75.3	%	75.0	%	216		71.9	%	71.5	%	9.3	%	3.4	%	3.5	%
Opportunistic Malls Subtotal	$	261	91.9	%	88.0	%	$	267	89.8	%	84.8	%	(2.2	)%	2.1	%	3.2	%
Malls Excluding Non Core and Redevelopment Subtotal	$	388	95.4	%	92.2	%	$	398	94.9	%	91.4	%	(2.5	)%	0.5	%	0.8	%
Non Core Malls
Palmer Park Mall	$	295	96.1	%	87.7	%	$	299	92.3	%	75.3	%	(1.3	)%	3.8	%	12.4	%
Uniontown Mall	267		94.6	%	87.7	%	267		96.4	%	91.7	%	—	%	(1.8	)%	(4.0	)%
Non Core Malls Subtotal	$	279	95.2	%	87.7	%	$	282	94.7	%	86.5	%	(1.1	)%	0.5	%	1.2	%
Same Store Malls weighted average	$	384	95.4	%	92.0	%	$	393	94.9	%	91.2	%	(2.3	)%	0.5	%	0.8	%
Non Same Store Redevelopment Mall
The Gallery at Market East	$	389	74.2	%	77.6	%	$	354	77.1	%	78.7	%	9.9	%	(2.9	)%	(1.1	)%
Total Continuing Malls weighted average	384		94.1	%	91.4	%	$	391	93.7	%	90.6	%	(1.8	)%	0.4	%	0.8	%
Sold Properties	N/A		N/A		N/A		$	242	90.4	%	86.1	%	N/A		N/A		N/A
Total Reported weighted average	$	384	94.1	%	91.4	%	$	381	93.4	%	90.3	%	0.8	%	0.7	%	1.1	%

⁽¹⁾  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.

11

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants

Tenant (1)	Total Number of Locations	Percentage of Annualized Gross Rent (2)
L Brands, Inc.	64	3.3	%
Signet Jewelers Limited	95	3.1	%
Gap, Inc.	36	3.0	%
Foot Locker, Inc.	56	3.0	%
J.C. Penney Company, Inc. (3)	25	2.6	%
American Eagle Outfitters, Inc.	33	2.5	%
Sears Holding Corporation	22	1.6	%
Ascena Retail Group, Inc.	41	1.6	%
Luxottica Group S.p.A.	43	1.4	%
Genesco, Inc.	57	1.4	%
Macy's, Inc.	23	1.4	%
Abercrombie & Fitch Co.	18	1.4	%
Aeropostale, Inc.	32	1.3	%
Boscov's Department Store	8	1.2	%
The Children's Place Retail Stores, Inc.	27	1.2	%
The Finish Line, Inc.	23	1.2	%
Regal Entertainment Group	4	1.2	%
Advent CR Holdings, Inc.	16	1.1	%
Shoe Show, Inc.	23	1.0	%
Dick's Sporting Goods, Inc.	8	1.0	%
Total Top 20 Tenants	654	35.6	%
Total Leases	2,692	100.0	%

⁽¹⁾  Tenant includes all brands and concepts of the tenant and includes stores that are PREIT owned and not PREIT owned.

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

⁽³⁾  Includes a landlord owned store located at Exton Square Mall which the tenant closed in May 2014. The tenant will continue to pay rent through the end of the lease.

12

Pennsylvania Real Estate Investment Trust

Lease Expirations as of September 30, 2014

(dollars in thousands except psf amounts)

Non-Anchors (1)
		Gross Leasable Area			Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring	Expiring GLA (2)	Percent of Total		Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year (3)		Percent of PREIT’s Total		Average Expiring Gross Rent psf
Holdover	166	487,411	4.5	%	$	16,607	$	15,136	4.6	%	$	34.07
2014	130	259,388	2.4	%	9,677		9,152		2.7	%	37.31
2015	417	1,516,933	14.0	%	50,786		45,525		13.7	%	33.48
2016	421	1,586,390	14.6	%	56,509		50,101		15.0	%	35.62
2017	334	1,103,839	10.2	%	41,244		37,389		11.2	%	37.36
2018	262	1,236,356	11.4	%	42,007		36,935		11.1	%	33.98
2019	207	963,402	8.9	%	32,280		29,323		8.8	%	33.51
2020	121	841,786	7.8	%	22,113		20,342		6.1	%	26.27
2021	119	526,995	4.9	%	19,288		16,872		5.1	%	36.60
2022	122	613,532	5.6	%	21,239		18,740		5.6	%	34.62
2023	150	831,181	7.7	%	28,897		25,561		7.7	%	34.77
Thereafter	156	876,450	8.0	%	30,403		27,933		8.4	%	34.69
Total/Average	2,605	10,843,663	100.0	%	$	371,050	$	333,009	100.0	%	$	34.22

Anchors (1)
		Gross Leasable Area			Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring (4)	Expiring GLA	Percent of Total		Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year (3)		Percent of PREIT’s Total		Average Expiring Gross Rent psf
2015	8	953,262	9.9	%	$	5,010	$	5,010	11.4	%	$	5.26
2016	17	1,732,683	18.0	%	6,728		6,728		15.2	%	3.88
2017	10	1,400,890	14.5	%	4,646		4,264		9.7	%	3.32
2018	12	1,214,574	12.6	%	5,396		5,396		12.2	%	4.44
2019	18	1,857,420	19.3	%	7,331		6,697		15.2	%	3.95
2020	5	546,584	5.7	%	1,736		1,736		3.9	%	3.18
2021	3	339,655	3.5	%	2,667		1,334		3.0	%	7.85
2022	4	521,173	5.4	%	2,646		2,646		6.0	%	5.08
Thereafter	10	1,072,610	11.1	%	16,942		10,324		23.4	%	15.80
Total/Average	87	9,638,851	100.0	%	$	53,102	$	44,135	100.0	%	$	5.51

⁽¹⁾  Only includes owned space.

⁽²⁾  Does not include tenants occupying space under license agreements with initial terms of less than one year. The GLA of these tenants is 454,668 square feet.

⁽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.

13

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2014

(GLA in thousands)

					Landlord Owned Anchors								Anchor Stores Not Owned							Non-anchor occupied
Properties	State	Ownership	Date Acquired	Year Built/ Last Renovated	Nordstrom	Macy’s	JCPenney	Sears	Boscov’s	Bon-Ton(1)	Other(s)	Total	Macy’s	JCPenney	Sears	Boscov’s	Bon-Ton	Other(s)	Total	Large Format	Small Shop	Vacant	Total GLA
Premier Malls
Cherry Hill Mall	NJ	100%	2003	1961/2009	138	—	—	—	—	—	—	138	305	174	—	—	—	—	479	229	420	41	1,307
Dartmouth Mall	MA	100%	1997	1971/2000	—	—	100	108	—	—	—	208	140	—	—	—	—	—	140	142	172	8	670
Jacksonville Mall	NC	100%	2003	1981/2008	—	—	52	117	—	—	73	242	—	—	—	—	—	—	—	99	136	13	490
Lehigh Valley Mall	PA	50%	1973	1977/2007	—	212	—	—	165	—	—	377	—	207	—	—	—	—	207	180	375	31	1,170
Willow Grove Park	PA	100%	2000-03	1982/2001	40	225	125	—	—	—	—	390	237	—	176	—	—	—	413	77	270	29	1,179
Woodland Mall	MI	100%	2005	1968/1998	—	—	—	—	—	—	—	—	157	255	313	—	—	—	725	167	272	5	1,169
Total Premier Malls					178	437	277	225	165	—	73	1,355	839	636	489	—	—	—	1,964	894	1,645	127	5,985
Core Growth Malls
Capital City Mall	PA	100%	2003	1974/2005	—	—	103	101	—	—	—	204	120	—	—	—	—	—	120	81	193	16	614
Crossroads Mall	WV	100%	2003	1981	—	—	90	87	—	—	78	255	—	—	—	—	—	—	—	74	125	15	469
Cumberland Mall	NJ	100%	2005	1973/2003	—	—	51	—	—	—	213	264	—	—	—	155	—	118	273	210	156	38	941
Exton Square Mall (2)	PA	100%	2003	1973/2000	—	—	118	144	178	—	—	440	181	—	96	—	—	—	277	59	273	39	1,088
Francis Scott Key Mall	MD	100%	2003	1978/1991	—	—	101	121	—	—	—	222	139	—	—	—	—	—	139	131	213	13	718
Gadsden Mall	AL	100%	2005	1974/1990	—	—	88	112	—	—	101	301	—	—	—	—	—	—	—	96	101	9	507
Logan Valley Mall	PA	100%	2003	1960/1997	—	150	146	159	—	—	—	455	—	—	—	—	—	—	—	59	235	32	781
Magnolia Mall	SC	100%	1997	1979/2007	—	—	104	91	—	—	148	343	—	—	—	—	—	—	—	99	171	10	623
Moorestown Mall	NJ	100%	2003	1963/2008	—	—	—	206	203	—	—	409	200	—	—	—	—	121	321	88	199	51	1,068
Patrick Henry Mall	VA	100%	2003	1988/2005	—	—	85	—	—	—	50	135	140	—	—	—	—	145	285	38	246	13	717
Plymouth Meeting Mall	PA	100%	2003	1966/2009	—	—	—	—	189	—	65	254	215	—	—	—	—	—	215	198	219	62	948
The Mall at Prince Georges	MD	100%	1998	1959/2004	—	196	149	—	—	—	135	480	—	—	—	—	—	—	—	155	275	7	917
Springfield Mall	PA	50%	2005	1974/1997	—	—	—	—	—	—	—	—	192	—	—	—	—	196	388	10	203	11	612
Valley Mall	MD	100%	2003	1974/1999	—	—	157	—	—	123	—	280	120	—	123	—	—	—	243	127	246	16	912
Valley View Mall	WI	100%	2003	1980/2001	—	—	96	—	—	—	—	96	100	—	113	—	42	—	255	42	176	15	584
Viewmont Mall	PA	100%	2003	1968/2006	—	—	193	193	—	—	—	386	140	—	—	—	—	—	140	51	153	38	768
Wyoming Valley Mall	PA	100%	2003	1971/2006	—	146	173	118	—	155	—	592	—	—	—	—	—	—	—	101	179	38	910
Core Growth Malls					—	492	1,654	1,332	570	278	790	5,116	1,547	—	332	155	42	580	2,656	1,619	3,363	423	13,177

(continued on next page)

14

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2014 (continued)

(GLA in thousands)

					Landlord Owned Anchors								Anchor Stores Not Owned							Non-anchor occupied
Properties	State	Ownership	Date Acquired	Year Built/ Last Renovated	Nordstrom	Macy’s	JCPenney	Sears	Boscov’s	Bon-Ton(1)	Other(s)	Total	Macy’s	JCPenney	Sears	Boscov’s	Bon-Ton	Other(s)	Total	Large Format	Small Shop	Vacant	Total GLA
Opportunistic Malls
Beaver Valley Mall	PA	100%	2002	1970/1991	—	—	126	191	194	—	—	511	205	—	—	—	—	—	205	193	206	39	1,154
Lycoming Mall	PA	100%	2003	1978/2007	—	—	62	130	—	60	81	333	120	—	—	—	—	—	120	162	171	21	807
New River Valley Mall	VA	100%	2003	1988/2007	—	—	50	—	—	—	88	138	—	—	—	—	—	—	—	145	130	50	463
Voorhees Town Center	NJ	100%	2003	1970/2007	—	—	—	—	4	—	—	4	224	—	—	173	—	24	421	73	157	77	732
Washington Crown Center	PA	100%	2003	1969/1999	—	—	—	83	—	78	84	245	140	—	—	—	—	—	140	116	117	56	674
Wiregrass Commons Mall	AL	100%	2003	1986/2008	—	—	—	—	—	—	95	95	—	84	—	—	—	248	332	10	177	21	635
Opportunistic Malls					—	—	238	404	198	138	348	1,326	689	84	—	173	—	272	1,218	699	958	264	4,465
Non Core Malls
Palmer Park Mall	PA	100%	1972/2003	1972/1998	—	—	—	—	192	122	—	314	—	—	—	—	—	—	—	—	126	18	458
Uniontown Mall	PA	100%	2003	1972/1990	—	—	63	100	—	80	148	391	—	—	—	—	—	—	—	102	169	38	700
Non Core Malls					—	—	63	100	192	202	148	705	—	—	—	—	—	—	—	102	295	56	1,158
Non Same Store Redevelopment Mall
The Gallery at Market East (3)	PA	50%	2003	1977/1990	—	—	—	—	—	—	616	616	—	—	—	—	—	—	—	109	219	328	1,272
Non Same Store Redevelopment Mall					—	—	—	—	—	—	616	616	—	—	—	—	—	—	—	109	219	328	1,272
Other Retail Properties
Street Level Retail (2 properties)	PA	100%	2014	1910/1960	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	49	24	1	74
Metroplex Shopping Center	PA	50%	1999	2001	—	—	—	—	—	—	67	67	—	—	—	—	—	301	301	354	56	—	778
The Court at Oxford Valley	PA	50%	1997	1996	—	—	—	—	—	—	60	60	—	—	—	—	—	247	247	305	54	38	704
Red Rose Commons	PA	50%	1998	1998	—	—	—	—	—	—	—	—	—	—	—	—	—	200	200	248	15	—	463
Springfield Park	PA	50%	1997/1998	1997/1998	—	—	—	—	—	—	98	98	—	—	—	—	—	146	146	21	22	—	287
Whitehall Mall	PA	50%	1964	1964/1998	—	—	—	213	—	—	82	295	—	—	—	—	—	—	—	196	51	40	582
Other Retail Properties					—	—	—	213	—	—	307	520	—	—	—	—	—	894	894	1,173	222	79	2,888
Portfolio Totals					178	929	2,232	2,274	1,125	618	2,282	9,638	3,075	720	821	328	42	1,746	6,732	4,596	6,702	1,277	28,945

⁽¹⁾ Does not include The Bon-Ton store located at Westgate.

⁽²⁾  JCPenney closed this store in May 2014. The tenant will continue to pay rent through the end of the lease.

(3) A portion of the property known as The Gallery was initially acquired in 2003 with further acquisitions of other buildings comprising The Gallery made in 2004, 2006 and 2013. In July 2014, the Company entered into a 50/50 JV partnership.

15

Pennsylvania Real Estate Investment Trust

Department Store Lease Expirations as of September 30, 2014

	Department Store Tenants
Properties	Belk	Bon-Ton(1)	Boscov’s	Burlington Coat Factory	Dillard’s	JCPenney	Kohl’s	Lord & Taylor	Macy’s	Nordstrom	Sears	Target
Premier Malls
Cherry Hill Mall	—	—	—	—	—	(2)	—	—	(2)	2025	—	—
Dartmouth Mall	—	—	—	—	—	2019	—	—	(2)	—	2016	—
Jacksonville Mall	2016	—	—	—	—	2015	—	—	—	—	2016	—
Lehigh Valley Mall	—	—	2017	—	—	(2)	—	—	2017	—	—	—
Willow Grove Park (3)	—	—	—	—	—	2032	—	—	2022, (2)	2022	(2)	—
Woodland Mall	—	—	—	—	—	(2)	(2)	—	(2)	—	(2)	—
Core Growth Malls
Capital City Mall	—	—	—	—	—	2015	—	—	(2)	—	2019	—
Crossroads Mall	2019	—	—	—	—	2016	—	—	—	—	2016	—
Cumberland Mall	—	—	(2)	2019	—	2018	—	—	—	—	—	—
Exton Square Mall (4)(5)	—	—	2019	—	—	2020	—	—	(2)	—	2019, (2)	—
Francis Scott Key Mall	—	—	—	—	—	2016	—	—	(2)	—	2018	—
Gadsden Mall	2019	—	—	—	—	2028	—	—	—	—	2019	—
Logan Valley Mall	—	—	—	—	—	2017	—	—	2020	—	2016	—
Magnolia Mall	2016	—	—	—	—	2017	—	—	—	—	2017	—
Moorestown Mall	—	—	2015	—	—	—	—	(2)	(2)	—	2022	—
Patrick Henry Mall	—	—	—	—	(2)	2015	—	—	(2)	—	—	—
Plymouth Meeting Mall	—	—	2016	—	—	—	—	—	(2)	—	—	—
The Mall at Prince Georges	—	—	—	—	—	2016	—	—	2018	—	—	2019
Springfield Mall	—	—	—	—	—	—	—	—	(2)	—	—	(2)
Valley Mall	—	2019	—	—	—	2019	—	—	(2)	—	(2)	—
Valley View Mall	—	(2)	—	—	—	2020	—	—	(2)	—	(2)	—
Viewmont Mall	—	—	—	—	—	2015	—	—	(2)	—	2015	—
Wyoming Valley Mall	—	2017	—	—	—	2017	—	—	2017	—	2016	—

(continued on next page)

16

Pennsylvania Real Estate Investment Trust

Department Store Lease Expirations as of September 30, 2014 (continued)

	Department Store Tenants
Properties	Belk	Bon-Ton (1)	Boscov’s	Burlington Coat Factory	Dillard’s	JCPenney	Kohl’s	Lord & Taylor	Macy’s	Nordstrom	Sears	Target
Opportunistic Malls
Beaver Valley Mall	—	—	2018	—	—	2017	—	—	(2)	—	2016	—
Lycoming Mall	—	2016	—	2019	—	2015	—	—	(2)	—	2018	—
New River Valley Mall	2020	—	—	—	—	2018	—	—	—	—	—	—
Voorhees Town Center	—	—	(2)	—	—	—	—	—	(2)	—	—	—
Washington Crown Center	—	2018	—	—	—	—	—	—	(2)	—	2019	—
Wiregrass Commons Mall	(2)	—	—	2020	(2)	(2)	—	—	—	—	—	—
Non Core Malls
Palmer Park Mall	—	2019	2018	—	—	—	—	—	—	—	—	—
Uniontown Mall	—	2016	—	2019	—	2015	—	—	—	—	2018	—
Non Same Store Redevelopment Mall
The Gallery at Market East	—	—	—	2032	—	—	—	—	—	—	—	—
Other Retail Properties
Street Level Retail (2 Properties)	—	—	—	—	—	—	—	—	—	—	—	—
Metroplex Shopping Center	—	—	—	—	—	—	—	—	—	—	—	(2)
The Court at Oxford Valley	—	—	—	—	—	—	—	—	—	—	—	—
Red Rose Commons	—	—	—	—	—	—	—	—	—	—	—	—
Springfield Park	—	—	—	—	—	—	—	—	—	—	—	(2)
Whitehall Mall	—	—	—	—	—	—	2017	—	—	—	2021	—
Total PREIT Owned Department Stores	5	6	6	5	—	21	1	—	5	2	17	1
Total Non-PREIT Owned Department Stores	1	1	2	—	2	4	1	1	18	—	5	3

⁽¹⁾  Total PREIT owned department stores does not include The Bon-Ton store located at Westgate.

⁽²⁾  Department store is not PREIT owned.

⁽³⁾  The property has a Macy’s that is PREIT owned and a Bloomingdale’s that is not PREIT owned.

⁽⁴⁾  The property has a Sears that is PREIT owned and a K-Mart that is not PREIT owned.

⁽⁵⁾  JCPenney closed this landlord owned store at this property in May 2014. The tenant will continue to pay rent through the end of the lease.

17

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method ⁽¹⁾ 

(in thousands, except per share amounts)

	September 30, 2014									December 31, 2013
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,173,334		$	334,437		$	3,507,771		$	3,450,317		$	218,167		$	3,668,484
Construction in progress	73,410			12,748			86,158			68,835			953			69,788
Land held for development	8,721			—			8,721			8,716			—			8,716
Total investments in real estate	3,255,465			347,185			3,602,650			3,527,868			219,120			3,746,988
Accumulated depreciation	(1,028,846		)	(105,022		)	(1,133,868		)	(1,012,746		)	(86,289		)	(1,099,035		)
Net investments in real estate	2,226,619			242,163			2,468,782			2,515,122			132,831			2,647,953
Investments in partnerships, at equity	129,202			(129,202		)	—			15,963			(15,963		)	—
Other assets:
Cash and cash equivalents	51,413			7,644			59,057			34,230			7,637			41,867
Rent and other receivables (2)	35,416			3,292			38,708			46,439			1,783			48,222
Intangible assets, net	6,622			5,564			12,186			9,075			70			9,145
Deferred costs and other assets, net	89,907			18,828			108,735			97,752			15,889			113,641
Total assets	$	2,539,179		$	148,289		$	2,687,468		$	2,718,581		$	142,247		$	2,860,828
LIABILITIES AND EQUITY
Liabilities:
Mortgage loans	$	1,414,054		$	195,887		$	1,609,941		$	1,502,650		$	198,451		$	1,701,101
Term Loans	130,000			—			130,000			—			—			—
Revolving Facility	—			—			—			130,000			—			130,000
Tenants’ deposits and deferred rent	16,062			3,957			20,019			17,896			4,151			22,047
Distributions in excess of partnership investments	64,360			(64,360		)	—			64,491			(64,491		)	—
Fair value of derivative instruments	1,738			—			1,738			844			—			844
Other liabilities	70,209			12,805			83,014			76,248			4,136			80,384
Total liabilities	1,696,423			148,289			1,844,712			1,792,129			142,247			1,934,376
Equity:
Total equity	842,756			—			842,756			926,452			—			926,452
Total liabilities and equity	$	2,539,179		$	148,289		$	2,687,468		$	2,718,581		$	142,247		$	2,860,828

⁽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 $27.0 million ($23.5 million consolidated, $3.5 million unconsolidated) as of September 30, 2014 and $28.9 million ($26.4 million consolidated, $2.5 million unconsolidated) as of December 31, 2013.

18

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾ 

(in thousands)

	September 30, 2014								December 31, 2013
	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	$	72,945	$	—	$	29,628	$	43,317	$	72,133	$	—	$	27,238	$	44,895
Capital City Mall	98,497		150		33,342		65,305		98,304		—		30,772		67,532
Cherry Hill Mall	465,067		—		157,495		307,572		461,126		—		139,719		321,407
Crossroads Mall	48,690		195		14,591		34,294		47,658		192		12,959		34,891
Cumberland Mall	67,181		326		16,745		50,762		66,546		—		15,102		51,444
Dartmouth Mall	64,453		—		32,030		32,423		63,842		—		30,532		33,310
Exton Square Mall	157,515		654		40,305		117,864		154,918		1,007		37,154		118,771
Francis Scott Key Mall	82,135		5,984		27,453		60,666		81,449		400		25,159		56,690
Gadsden Mall	64,163		—		15,934		48,229		63,365		—		14,276		49,089
The Gallery at Market East	—		—		—		—		245,189		7,406		46,201		206,394
Jacksonville Mall	82,306		1,354		26,345		57,315		82,094		—		24,214		57,880
Logan Valley Mall	99,381		—		31,397		67,984		98,012		—		29,457		68,555
Lycoming Mall	78,708		—		25,865		52,843		78,665		—		23,791		54,874
Magnolia Mall	92,083		—		36,430		55,653		91,666		—		33,817		57,849
Moorestown Mall	128,883		331		37,125		92,089		114,883		3,216		33,446		84,653
New River Valley Mall	59,317		—		26,738		32,579		59,169		—		24,375		34,794
Nittany Mall (2)	—		—		—		—		44,454		—		12,961		31,493
North Hanover Mall (2)	—		—		—		—		22,852		—		6,747		16,105
Palmer Park Mall	34,806		—		14,925		19,881		34,866		—		14,320		20,546
Patrick Henry Mall	145,937		—		51,879		94,058		144,331		—		47,753		96,578
Plymouth Meeting Mall	170,425		—		52,788		117,637		167,174		2,080		46,953		122,301
The Mall at Prince Georges	103,525		—		45,152		58,373		103,462		—		42,357		61,105
South Mall (3)	—		—		—		—		32,655		—		8,708		23,947
Uniontown Mall	43,111		—		15,545		27,566		43,037		—		14,285		28,752
Valley Mall	98,906		984		31,158		68,732		98,297		—		28,898		69,399
Valley View Mall	71,036		4,855		19,773		56,118		69,925		—		18,212		51,713
Viewmont Mall	95,817		—		28,894		66,923		92,644		—		26,362		66,282
Voorhees Town Center	81,808		601		26,719		55,690		79,888		302		22,989		57,201
Washington Crown Center	47,899		3,074		16,271		34,702		43,835		141		15,369		28,607
Willow Grove Park	233,724		—		71,026		162,698		232,099		—		65,183		166,916
Wiregrass Commons Mall	56,086		—		16,332		39,754		54,885		—		14,744		40,141
Woodland Mall	192,486		—		49,443		143,043		191,781		—		44,730		147,051
Wyoming Valley Mall	111,252		—		36,875		74,377		110,148		—		33,929		76,219
Total Consolidated Malls	3,148,142		18,508		1,028,203		2,138,447		3,445,352		14,744		1,012,712		2,447,384
Unconsolidated Malls
The Gallery at Market East	111,037		9,304		13,904		106,437		—		—		—		—
Lehigh Valley Mall	46,290		136		23,186		23,240		45,726		162		21,869		24,019
Springfield Mall	56,985		9		16,273		40,721		56,897		6		15,145		41,758
Total Unconsolidated Malls	214,312		9,449		53,363		170,398		102,623		168		37,014		65,777
TOTAL MALLS	$	3,362,454	$	27,957	$	1,081,566	$	2,308,845	$	3,547,975	$	14,912	$	1,049,726	$	2,513,161

(continued on next page)

19

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾ (continued)

(in thousands)

	September 30, 2014								December 31, 2013
	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 Other Retail Properties
Monroe Marketplace (4)	$	1,515	$	—	$	54	$	1,461	$	1,515	$	—	$	34	$	1,481
Pitney Road Plaza (5)	—		884		—		884		—		75		—		75
Street Level Retail (2 Properties)	20,227		—		589		19,638		—		—		—		—
Westgate Anchor Pad (6)	3,450		—		—		3,450		3,450		—		—		3,450
Total Consolidated Other Retail Properties	25,192		884		643		25,433		4,965		75		34		5,006
Unconsolidated Other Retail Properties
Metroplex Shopping Center	42,919		—		21,748		21,171		42,919		—		20,514		22,405
The Court at Oxford Valley	28,760		—		10,754		18,006		28,760		—		10,317		18,443
Red Rose Commons	13,617		1		5,189		8,429		13,617		1		5,009		8,609
Springfield Park	8,443		—		2,152		6,291		7,217		—		1,986		5,231
Whitehall Mall	16,867		47		9,816		7,098		16,791		—		9,528		7,263
Total Unconsolidated Other Retail Properties	110,606		48		49,659		60,995		109,304		1		47,354		61,951
TOTAL OTHER RETAIL PROPERTIES	$	135,798	$	932	$	50,302	$	86,428	$	114,269	$	76	$	47,388	$	66,957
Consolidated Properties Under Development
Springhills	$	—	$	19,230	$	—	$	19,230	$	—	$	19,230	$	—	$	19,230
White Clay Point	—		34,788		—		34,788		—		34,786		—		34,786
Total Consolidated Properties Under Development	—		54,018		—		54,018		—		54,016		—		54,016
Unconsolidated Properties Under Development
Gloucester Premium Outlets	3,279		2,467		—		5,746		—		—		—		—
Pavilion at Market East	6,240		784		2,000		5,024		6,240		784		1,921		5,103
Total Unconsolidated Properties Under Development	9,519		3,251		2,000		10,770		6,240		784		1,921		5,103
Other Properties
Land held for development - consolidated	8,721		—		—		8,721		8,716		—		—		8,716
Total Other Properties	8,721		—		—		8,721		8,716		—		—		8,716
TOTAL DEVELOPMENT AND OTHER PROPERTIES	$	18,240	$	57,269	$	2,000	$	73,509	$	14,956	$	54,800	$	1,921	$	67,835
TOTAL INVESTMENT IN REAL ESTATE	$	3,516,492	$	86,158	$	1,133,868	$	2,468,782	$	3,677,200	$	69,788	$	1,099,035	$	2,647,953
CONSOLIDATED PROPERTIES	$	3,182,055	$	73,410	$	1,028,846	$	2,226,619	$	3,459,033	$	68,835	$	1,012,746	$	2,515,122
UNCONSOLIDATED PROPERTIES	334,437		12,748		105,022		242,163		218,167		953		86,289		132,831
TOTAL INVESTMENT IN REAL ESTATE	$	3,516,492	$	86,158	$	1,133,868	$	2,468,782	$	3,677,200	$	69,788	$	1,099,035	$	2,647,953

⁽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⁾  Property was sold in September 2014.

⁽³⁾  Property was sold in June 2014.

⁽⁴⁾  Consists of two parcels remaining after the sale of the property in 2010.

⁽⁵⁾  Consists of one parcel remaining after the sale of the property in 2011.

⁽⁶⁾  Investment in real estate previously combined with South Mall.

20

Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)

	Quarter Ended September 30, 2014						Nine Months Ended September 30, 2014
	Consolidated		Unconsolidated		Total		Consolidated		Unconsolidated		Total
Redevelopment projects with incremental GLA and/or anchor replacement (1)	$	9,963	$	2,326	$	12,289	$	34,376	$	2,646	$	37,022
New development projects	566		1,179		1,745		841		5,746		6,587
Renovation with no incremental GLA	2,744		—		2,744		2,744		—		2,744
Tenant allowances	8,597		405		9,002		19,755		523		20,278
Recurring capital expenditures:
CAM expenditures	4,956		300		5,256		7,423		324		7,747
Non-CAM expenditures	1,240		2		1,242		2,084		8		2,092
Total recurring capital expenditures	6,196		302		6,498		9,507		332		9,839
Total	$	28,066	$	4,212	$	32,278	$	67,223	$	9,247	$	76,470

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

21

Pennsylvania Real Estate Investment Trust

Debt Analysis as of September 30, 2014

(in thousands)

	Outstanding Debt
	Fixed Rate (1)			% of Total Indebtedness		Variable Rate (2)			% of Total Indebtedness		Total			% of Total Indebtedness
Consolidated mortgage loans payable	$	1,414,054		81.2	%	$	—		—	%	$	1,414,054		81.2	%
Unconsolidated mortgage loans payable	192,329			11.1	%	3,558			0.2	%	195,887			11.3	%
2014 Term Loans	130,000			7.5	%	—			—	%	130,000			7.5	%
2013 Revolving Facility	—			—	%	—			—	%	—			—	%
TOTAL OUTSTANDING DEBT	$	1,736,383		99.8	%	$	3,558		0.2	%	$	1,739,941		100.0	%
AVERAGE STATED INTEREST RATE	4.96		%			2.94		%			4.83		%

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

		Average Debt Balance
		Mortgage Debt			2013 Revolving Facility		2014 Term Loans		TOTAL
Beginning Balance	6/30/2014	$	1,691,538		$	—	$	130,000	$	1,821,538
Mortgage loan amortization		(4,813		)	—		—		(4,813		)
801 Market Street Mortgage Loan Repayment		(25,784		)	—		—		(25,784		)
Logan Valley Mall Mortgage Loan Repayment		(51,000		)	—		—		(51,000		)
2013 Revolving Facility, net		—			—		—		—
Ending Balance	9/30/2014	$	1,609,941		$	—	$	130,000	$	1,739,941
Weighted Average Balance		$	1,629,471		$	9,239	$	130,000	$	1,768,711

	Debt Maturities (1)
Year	Scheduled Amortization		Mortgage Balance at Maturity		2013 Revolving Facility		2014 Term Loans		Total Debt
2014	$	6,235	$	—	$	—	$	—	$	6,235
2015	24,958		306,020		—		—		330,978
2016	15,866		219,480		—		—		235,346
2017	15,584		153,283		—		—		168,867
2018	15,335		145,678		—		—		161,013
2019	15,641		28,050		—		100,000		143,691
Thereafter	41,036		622,775		—		30,000		693,811
	$	134,655	$	1,475,286	$	—	$	130,000	$	1,739,941

⁽¹⁾  The weighted average period to mortgage loan maturity is 4.94 years, excluding extension options. Includes 100% of mortgage loan debt from consolidated properties and our share of mortgage loan debt from unconsolidated properties, based on our ownership percentage.

Weighted Average Mortgage Interest Rates
Year	Balance		Interest Rate
2015	314,567		5.69	%
2016	225,860		5.55	%
2017	153,558		5.45	%
2018	149,968		3.83	%
Thereafter	765,988		4.60	%
Total	$	1,609,941	4.95	%

22

Pennsylvania Real Estate Investment Trust

Debt Schedule as of September 30, 2014

(in thousands)

	Debt (1)		Interest Rate		Annual Debt Service		Balance at Maturity		Initial Maturity Date	Fully Extended Maturity Date
Fixed Rate Mortgage Loans
Springfield East (2)	$	2,088	5.39	%	$	92	$	2,061	Mar 2015	Mar 2020
Springfield Park (2)	2,453		5.39	%	107		2,419		Mar 2015	Mar 2020
Magnolia Mall	56,029		5.33	%	4,413		54,965		July 2015	July 2015
Patrick Henry Mall	85,595		6.34	%	7,743		83,210		Oct 2015	Oct 2015
Springfield Mall (2)	31,456		4.77	%	2,118		30,741		Nov 2015	Nov 2015
Willow Grove Park	136,946		5.65	%	11,083		132,624		Dec 2015	Dec 2015
Valley Mall	81,335		5.49	%	5,014		78,996		Mar 2016	Mar 2016
Woodland Mall	144,525		5.58	%	10,761		140,484		Apr 2016	Apr 2016
The Mall at Prince Georges	150,000		5.51	%	8,269		150,000		June 2017	June 2017
Francis Scott Key Mall (2)	62,625		3.71	%	2,321		62,625		Mar 2018	Mar 2018
Viewmont Mall (2)	48,000		3.72	%	1,786		48,000		Mar 2018	Mar 2018
Lycoming Mall	34,190		3.72	%	3,001		30,908		Mar 2018	Mar 2018
Whitehall Mall	5,153		7.00	%	574		4,145		Nov 2018	Nov 2018
New River Valley Mall (2)(3)	28,050		4.38	%	1,229		28,050		Jan 2019	Jan 2019
Valley View Mall	30,315		5.95	%	2,290		27,161		July 2020	July 2020
Lehigh Valley Mall	65,972		5.88	%	4,972		58,519		July 2020	July 2020
Red Rose Commons	14,270		5.14	%	978		12,378		July 2021	July 2021
The Court at Oxford Valley	29,163		5.56	%	1,668		25,782		July 2021	July 2021
Capital City Mall	63,500		5.30	%	4,379		54,715		Mar 2022	Mar 2022
Cumberland Mall	49,578		4.40	%	3,433		38,157		Aug 2022	Aug 2022
Cherry Hill Mall (4)	300,000		3.90	%	11,700		252,568		Sept 2022	Sept 2022
Dartmouth Mall	65,366		3.97	%	3,825		53,299		Apr 2023	Apr 2023
Metroplex Shopping Center	41,774		5.00	%	2,681		33,502		Oct 2023	Oct 2023
Wyoming Valley Mall (5)	78,000		5.17	%	4,034		66,694		Dec 2023	Dec 2023
Total Fixed Rate Mortgage Loans	$	1,606,383	4.96	%	$	98,471	$	1,472,003
Variable Rate Mortgage Loans
Pavilion East Associates	$	3,558	2.94	%	$	253	$	3,283	Aug 2017	Aug 2017
Total Variable Rate Mortgage Loans	3,558		2.94	%	253		3,283
Total Mortgage Loans	$	1,609,941	4.95	%	$	98,724	$	1,475,286
CONSOLIDATED MORTGAGE LOANS	$	1,414,054	4.90	%	$	85,281	$	1,302,456
UNCONSOLIDATED MORTGAGE LOANS	195,887		5.38	%	13,443		172,830
2014 5 YEAR TERM LOAN (2)	100,000		3.24	%	3,236		100,000		Jan 2019	Jan 2019
2014 7 YEAR TERM LOAN (2)	30,000		3.73	%	1,118		30,000		Jan 2021	Jan 2021
2013 REVOLVING FACILITY	—		—	%	—		—		Apr 2016	Apr 2018
Total	$	1,739,941	4.83	%	$	103,078	$	1,605,286
AMORTIZATION OF DEFERRED FINANCING FEES	—		0.18	%	—		—
EFFECTIVE INTEREST RATE	$	1,739,941	5.01	%	$	103,078	$	1,605,286

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

⁽²⁾  All or a portion of the loan has been effectively swapped to the fixed interest rate presented.

⁽³⁾  Payments are of interest only until 2017, then principal and interest at a rate to be determined.

⁽⁴⁾  Payments are of interest only until October 2014.

⁽⁵⁾  Payments are of interest only until April 2015.

23

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios ⁽¹⁾ 

	September 30, 2014
Consolidated Liabilities to Gross Asset Value	48.87	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 60%
Secured Indebtedness to Gross Asset Value	42.03	%
Secured indebtedness to Gross Asset Value may not exceed 60%
Adjusted EBITDA to Fixed Charges	2.04
Adjusted EBITDA may not be less than 1.45 to 1.00
Unencumbered Adjusted NOI to Unsecured Interest Expense	12.03
Unencumbered Adjusted NOI to Unsecured Interest Expense may not be less than 1.75 to 1.00
Unencumbered Debt Yield	51.82	%
The ratio of Unencumbered Adjusted NOI to Unsecured Debt may not be less than 12%

⁽¹⁾  The 2013 Revolving Facility agreement dated as of April 17, 2013, as amended, and the 2014 Term Loan agreements dated as of January 8, 2014 contain identical 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 2013 Revolving Facility. In addition to the ratios set forth herein, there are several other ratios under the 2013 Revolving Facility and 2014 Term Loans with which the Company must comply, all of which are described in the Company’s Annual Report on Form 10-K dated February 28, 2014.

24

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 net income excluding gains and losses on sales of operating properties (computed in accordance with GAAP), plus real estate depreciation and amortization; and after adjustments for unconsolidated partnerships and joint ventures 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. In 2011, NAREIT reiterated its established guidance that excluding impairment write downs of depreciable real estate is consistent with the NAREIT definition.

We use FFO and FFO per diluted share and unit of limited partnership interest in our operating partnership (“OP Unit”) in measuring our performance against our peers and as one of the performance measures for determining incentive compensation amounts earned under certain of our performance-based executive compensation programs. FFO is a commonly used measure of operating performance and profitability among REITs, and we use FFO and FFO per diluted share and OP Unit as supplemental non-GAAP measures to compare our performance for different periods to that of our industry peers.

FFO does not include gains and losses on sales 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 NOI. 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 our 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 also present Funds From Operations, as adjusted, and Funds From Operations per diluted share and OP Unit, as adjusted, which are non-GAAP measures, for the three and nine months ended September 30, 2014 and 2013 to show the effect of acquisition costs, provision for executive separation expense, gain and loss on hedge ineffectiveness and accelerated amortization of deferred financing costs, which had a significant effect on our results of operations, but is not, in our opinion, indicative of our operating performance.

We believe 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 gains on sales of operating real estate and depreciation and amortization of real estate, among others. We believe that Funds From Operations, as adjusted, is helpful to management and investors as a measure of operating performance because it adjusts FFO to exclude items that management does not believe are indicative of its operating performance, such as provision for executive separation expense.

Net Operating Income (NOI)

NOI (a non-GAAP measure) is derived from real estate revenue (determined in accordance with generally accepted accounting principles, or 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, if any. 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 our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity. It is not indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that NOI 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. We believe that net income is the most directly comparable GAAP measurement to NOI.

NOI excludes interest and other income, general and administrative expenses, interest expense, depreciation and amortization, gains on sales of interests in real estate, gains on sales of non-operating real estate, gains on sales of discontinued operations, gain on extinguishment of debt, impairment losses, project costs and other expenses.

Same Store NOI

Same store NOI is calculated using retail properties owned for the full periods presented and exclude properties acquired or disposed of or reclassified as held for sale during the periods presented.

Funds Available for Distribution (FAD)

FAD 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 as Adjusted and subtracting (1) straight-line rent, (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.

We believe that net income is the most directly comparable GAAP measurement to FAD. We believe FAD provides a meaningful indicator of its ability to fund cash needs and to make cash distributions to equity owners. In addition, we believe 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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Pennsylvania Real Estate Investment Trust

Forward Looking Statements

This Quarterly Supplemental and Operating Information contains certain “forward-looking statements” within the meaning of the federal securities laws. 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 our current views about future events, achievements or results 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. In particular, our business might be materially and adversely affected by uncertainties affecting real estate businesses generally as well as the following, among other factors:

• our substantial debt and stated value of preferred shares and our high leverage ratio;

• constraining leverage, unencumbered debt yield, interest and tangible net worth covenants under our 2013 Revolving Facility, our 2014 Term Loans and the Letter of Credit;

• potential losses on impairment of certain long-lived assets, such as real estate, or of intangible assets, such as goodwill, including such losses that we might be required to record in connection with any dispositions of assets;

• changes to our corporate management team and any resulting modifications to our business strategies;

• our ability to refinance our existing indebtedness when it matures, on favorable terms or at all;

• our 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;

• our ability to identify and execute on suitable acquisition opportunities and to integrate acquired properties into our portfolio;

• our partnership and joint ventures with third parties to acquire or develop properties;

• our short and long-term liquidity position;

• current economic conditions and their effect on employment and consumer confidence and spending, and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions and on our cash flows, and the value and potential impairment of our properties;

• changes in the retail industry, including consolidation and store closings, particularly among anchor tenants;

• the effects of online shopping and other uses of technology on our retail tenants;

• risks related to development and redevelopment activities;

• our ability to sell properties that we seek to dispose of or our ability to obtain estimated sale prices;

• our ability to maintain and increase property occupancy, sales and rental rates, in light of the relatively high number of leases that have expired or are expiring in the next two years;

• acts of violence at malls, including our properties, or other similar spaces, and the potential effect on traffic and sales;

• increases in operating costs that cannot be passed on to tenants;

• concentration of our properties in the Mid-Atlantic region;

• changes in local market conditions, such as the supply of or demand for retail space, or other competitive factors; and

• potential dilution from any capital raising transactions or other equity issuances.

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