Pennsylvania Real Estate Investment Trust (PRET) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

Quarter Ended March 31, 2007

www.preit.com

NYSE common shares (PEI)

NYSE preferred shares (PEIPRA)

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

March 31, 2007

Table of Contents
Introduction
Company Information	1
Press Release Announcements	2
Market Capitalization and Capital Resources	3
Operating Results
Income Statement-Proportionate Consolidation Method - Three Months Ended March 31, 2007 and 2006	4
Net Operating Income - Three Months Ended March 31, 2007 and 2006	5
Computation of Earnings per Share	6
Funds From Operations and Funds Available for Distribution	7
Operating Statistics
Leasing Activity Summary	8
Summarized Rent Per Square Foot and Occupancy Percentages	9
Mall Sales and Rents Per Square Foot	10
Mall Occupancy - Owned GLA	11
Power Center and Strip Center Rents Per Square Foot and Occupancy Percentages	12
Top Twenty Tenants	13
Lease Expirations	14
Gross Leasable Area Summary	15
Property Information	16
Balance Sheet
Balance Sheet - Proportionate Consolidation Method	19
Balance Sheet - Property Type	20
Investment in Real Estate	21
Property Redevelopment and Repositioning Summary	23
Development Property Summary	25
Capital Expenditures	26
Debt Analysis	27
Debt Schedule	28
Shareholder Information	29
Definitions	30

FORWARD-LOOKING STATEMENTS

This Quarterly Supplemental Financial and Operating Information contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect PREIT’s current views about future events and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. More specifically, PREIT’s business might be affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: general economic, financial and political conditions, including changes in interest rates or the possibility of war or terrorist attacks; changes in local market conditions or other competitive or retail industry factors in the regions where our properties are concentrated; PREIT’s ability to maintain and increase property occupancy and rental rates, and risks relating to development or redevelopment activities, including construction, obtaining entitlements and managing multiple projects simultaneously. In particular, the successful development or redevelopment of any property is subject to a number of risks, including, among others, that PREIT’s development or redevelopment plans might change, its development or redevelopment activities might be delayed and anticipated project costs might increase. Unanticipated expenses or delays would also adversely affect PREIT’s investment returns on a development or redevelopment project. Additionally, there can be no assurance that PREIT’s actual results will not differ significantly from the estimates set forth above, or that PREIT’s returns on its developments, redevelopments or acquisitions will be consistent with the estimates outlined in the related press releases or other disclosures. Investors are also directed to consider the risks and uncertainties discussed in documents PREIT has filed with the Securities and Exchange Commission and, in particular, PREIT’s Annual Report on Form 10-K for the year ended December 31, 2006. 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 (“PREIT” or “The Company”), founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls and power centers. As of March 31, 2007, the Company’s retail portfolio, of approximately 33.8 million square feet, consisted of 56 properties including 38 shopping malls, 11 strip and power centers, and seven properties under development. The Company’s properties are located in 13 states in the eastern half of the United States, primarily in the Mid-Atlantic region.

Investors Relations

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

Credit Ratings

Preferred stock
Moody’s	B1	(Stable)
Fitch	B+	(Positive)

Reporting Calendar

Results for 2007 will be announced as follows (tentative date):

Second Quarter 2007	August 2, 2007
Third Quarter 2007	November 2, 2007
Fourth Quarter 2007	February 27, 2008

Research Coverage

Companyt	Analyst	Phone Number
Green Street Advisors	Jim Sullivan	(949) 640-8780
	Ben Yang	(949) 640-8780
JP Morgan	Michael W. Mueller	(212) 622-6689
	Anthony Paolone	(212) 622-6682
Lehman Brothers	David Harris	(212) 526-1790
Morgan Stanley	Matthew Ostrower	(212) 761-6284
	Mick Chiang	(212) 761-6385
Stifel Nicolaus	David M. Fick	(410) 539-0000
	Nathan Isbee	(410) 454-4143
UBS Securities	Jeffrey Spector	(212) 713-6144

Page 3

Pennsylvania Real Estate Investment Trust

Press Release Announcements

Dividends and Distributions:

February 23, 2007 PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.57 per common share and a regular dividend of $1.375 per share on its 11.00% senior preferred shares.

January 12, 2007 PREIT announced the tax status of the distributions paid per share during 2006.

Acquisitions, dispositions, development and redevelopment activities:

April 25, 2007 PREIT announced redevelopment plans for Jacksonville Mall in Jacksonville, North Carolina, and North Hanover Mall in Hanover, Pennsylvania.

March 9, 2007 PREIT announced it completed the sale of Schuylkill Mall in Frackville, Pennsylvania.

February 27, 2007 PREIT announced that construction is underway at Cherry Hill Mall in Cherry Hill, New Jersey, Plymouth Meeting Mall in Plymouth Meeting, Pennsylvania, and Voorhees Town Center in Voorhees, New Jersey.

January 29, 2007 PREIT announced that it will begin redevelopment of Echelon Mall, in Voorhees, New Jersey, on January 30, 2007, transforming the property to Voorhees Town Center.

January 11, 2007 PREIT announced that it completed a ground lease and sale for two parcels of land at Echelon Mall in Voorhees, New Jersey.

Other activities:

April 17, 2007 PREIT scheduled its First Quarter 2007 earnings call for Tuesday, May 1, 2007.

March 2, 2007 PREIT announced it will present at 2007 Citigroup REIT CEO conference in Naples, Florida, on March 5, 2007.

February 27, 2007 PREIT reported its Fourth Quarter and 2006 financial results.

January 22, 2007 PREIT scheduled its Fourth Quarter 2006 earnings call for Tuesday, February 27, 2007.

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

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Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

	Quarter Ended March 31,						Year Ended December 31,
	2007			2006			2006			2005			2004
TRADING INFORMATION
High Price	$	45.66		$	44.44		$	44.53		$	50.20		$	43.70
Low Price	$	38.52		$	36.95		$	36.75		$	35.24		$	30.25
Average Daily Trading Volume		361,403			190,263			223,686			209,537			161,659
MARKET CAPITALIZATION (in thousands, except per share amounts)
EQUITY CAPITALIZATION
Common Shares Outstanding		37,107			36,660			36,947			36,521			36,272
O.P. Units Outstanding		4,294			4,149			4,297			4,156			4,414
TOTAL Shares and O.P. Units		41,401			40,809			41,244			40,677			40,686
Market Price (closing price at end of period)	$	44.33		$	44.00		$	39.38		$	37.36		$	42.80
Equity Market Capitalization - Shares and O.P. Units	$	1,835,306		$	1,795,596		$	1,606,325		$	1,519,679		$	1,741,349
Preferred Shares, Nominal Value		123,750			123,750			123,750			123,750			123,750
Total Equity Market Capitalization		1,959,056			1,919,346			1,730,075			1,643,429			1,865,099
DEBT CAPITALIZATION
Unsecured Debt Balance(1)		426,148			238,000			333,148			436,900			271,000
Secured Debt Balance		1,723,080			1,760,059			1,789,511			1,523,745			1,326,127
Debt Capitalization		2,149,228			1,998,059			2,122,659			1,960,645			1,597,127
TOTAL MARKET CAPITALIZATION	$	4,108,284		$	3,917,405		$	3,852,734		$	3,604,074		$	3,462,226
Preferred Shares/Total Market Capitalization		3.0	%		3.2	%		3.2	%		3.4	%		3.6	%
Shares and O.P. Units/Total Market Capitalization		44.7	%		45.8	%		41.7	%		42.2	%		50.3	%
Debt Capitalization/Total Market Capitalization		52.3	%		51.0	%		55.1	%		54.4	%		46.1	%
Equity Capitalization/Total Market Capitalization		47.7	%		49.0	%		44.9	%		45.6	%		53.9	%
Unsecured Debt Balance/Total Debt		19.8	%		11.9	%		15.7	%		22.3	%		17.0	%
DISTRIBUTIONS PER COMMON SHARE
Ordinary Income		(2	)	$	0.493		$	1.935		$	2.075		$	1.617
Section 1250 Gain		(2	)		—			0.037			—			0.026
Return of Capital/Non-Taxable		(2	)		0.077			0.308			0.175			0.517
Distributions per share	$	0.570		$	0.570		$	2.280		$	2.250		$	2.160
Annualized Dividend Yield(3)		5.1	%		5.2	%		5.8	%		6.0	%		5.0	%
CAPITAL RESOURCES
Cash on Hand	$	20,038		$	29,520		$	18,727		$	25,828		$	45,949
Credit Facility (4)		500,000			500,000			500,000			500,000			500,000
Amount Outstanding		(425,000	)		(238,000	)		(332,000	)		(342,500	)		(271,000	)
Letters of Credit		(8,739	)		(21,953	)		(24,803	)		(10,485	)		(8,055	)
Available Line of Credit(5)		66,261			240,047			143,197			147,015			220,945
Shelf Registration		1,000,000			1,000,000			1,000,000			1,000,000			1,000,000
Amount Used		(344,146	)		(344,146	)		(344,146	)		(344,146	)		(344,146	)
Available Shelf		655,854			655,854			655,854			655,854			655,854
TOTAL CAPITAL RESOURCES	$	742,153		$	925,421		$	817,778		$	828,697		$	922,748

⁽¹⁾ The unsecured debt balance includes $1,148, $1,148 and $94,400 of corporate notes payable as of March 31, 2007, December 31, 2006 and December 31, 2005, respectively.

⁽²⁾ Tax status of 2007 dividend payments will be available in January 2008.

⁽³⁾ Based on closing stock price at the end of the period.

⁽⁴⁾ The unsecured Credit Facility may be increased to $650,000 under prescribed conditions.

⁽⁵⁾ The available line of credit is subject to covenants that may restrict amounts that can be borrowed.

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Pennsylvania Real Estate Investment Trust

Income Statement - Three Months Ended March 31, 2007 and 2006

Proportionate Consolidation Method⁽¹⁾

(in thousands)

	Three months ended March 31, 2007												Three months ended March 31, 2006
	GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total			GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total
Real estate revenues:
Base rents	$	70,899		$	5,944		$	543		$	77,386		$	70,220		$	5,804		$	938		$	76,962
Expense reimbursements		34,774			2,154			420			37,348			33,066			1,904			583			35,553
Percentage rents		2,091			28			—			2,119			2,138			59			—			2,197
Lease termination revenue		475			2			—			477			1,810			156			153			2,119
Other real estate revenues		3,657			194			83			3,934			3,763			186			89			4,038
TOTAL REAL ESTATE REVENUES		111,896			8,322			1,046			121,264			110,997			8,109			1,763			120,869
Property operating expenses:
CAM and real estate taxes		(32,504	)		(1,788	)		(481	)		(34,773	)		(30,813	)		(1,639	)		(544	)		(32,996	)
Utilities		(6,258	)		(208	)		(259	)		(6,725	)		(5,483	)		(219	)		(283	)		(5,985	)
Other property operating expenses		(5,616	)		(597	)		(76	)		(6,289	)		(5,932	)		(446	)		(136	)		(6,514	)
TOTAL PROPERTY OPERATING EXPENSES		(44,378	)		(2,593	)		(816	)		(47,787	)		(42,228	)		(2,304	)		(963	)		(45,495	)
NET OPERATING INCOME		67,518			5,729			230			73,477			68,769			5,805			800			75,374
Management company revenue	��	440			—			—			440			639			—			—			639
Interest and other income		1,304			—			—			1,304			389			—			—			389
Other expenses:
General and administrative expenses		(10,731	)		—			—			(10,731	)		(10,267	)		—			—			(10,267	)
Executive separation		—			—			—			—			(3,985	)		—			—			(3,985	)
Income taxes and other		(326	)		—			—			(326	)		(78	)		—			—			(78	)
Interest expense(2)		(23,811	)		(3,072	)		(136	)		(27,019	)		(23,810	)		(2,403	)		(312	)		(26,525	)
Depreciation and amortization		(31,774	)		(1,702	)		(216	)		(33,692	)		(30,024	)		(1,719	)		(2,823	)		(34,566	)
Subtotal		2,620			955			(122	)		3,575			1,633			1,683			(2,335	)		3,316
Equity in income of partnerships		955			(955	)		—			—			1,683			(1,683	)		—			—
Gains on sales of non-operating real estate		—			—			—			—			61			—			—			61
Minority interest		(376	)		—			—			(376	)		(643	)		—			—			(643	)
TOTAL CONTINUING OPERATIONS		3,199			—			(122	)		3,199			2,734			—			(2,335	)		2,734
Discontinued Operations:
Operating results from discontinued operations		(122	)		—			122			—			(2,335	)		—			2,335			—
Gain on sale of discontinued operations		6,699			—			—			6,699			—			—			—			—
Minority interest		(691	)		—			—			(691	)		242			—			—			242
TOTAL DISCONTINUED OPERATIONS		5,886			—			122			5,886			(2,093	)		—			2,335			(2,093	)
NET INCOME		9,085			—			—			9,085			641			—			—			641
Dividends on preferred shares		(3,403	)		—			—			(3,403	)		(3,403	)		—			—			(3,403	)
NET INCOME AVAILABLE (LOSS ALLOCABLE) TO COMMON SHAREHOLDERS	$	5,682		$	—		$	—		$	5,682		$	(2,762	)	$	—		$	—		$	(2,762	)

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

⁽²⁾ Capitalized interest expense of $3,545 and $1,444 is not included for the three months ended March 31, 2007 and March 31, 2006, respectively.

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Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Three Months Ended March 31, 2007 and 2006

(in thousands)

	Three months ended March 31, 2007									Three months ended March 31, 2006
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other				Total
Real estate revenues:
Base rents	$	76,793		$	593		$	77,386		$	75,978		$	984			$	76,962
Expense reimbursements		36,928			420			37,348			34,970			583				35,553
Percentage rents		2,119			—			2,119			2,196			1				2,197
Lease termination revenue		477			—			477			1,965			154				2,119
Other real estate revenues		3,850			84			3,934			3,950			88		��		4,038
TOTAL REAL ESTATE REVENUES		120,167			1,097			121,264			119,059			1,810				120,869
Property operating expenses:
CAM and real estate taxes		(34,284	)		(489	)		(34,773	)		(32,447	)		(549	)			(32,996	)
Utilities		(6,466	)		(259	)		(6,725	)		(5,703	)		(282	)			(5,985	)
Other property operating expenses		(6,212	)		(77	)		(6,289	)		(6,378	)		(136	)			(6,514	)
TOTAL PROPERTY OPERATING EXPENSES		(46,962	)		(825	)		(47,787	)		(44,528	)		(967	)			(45,495	)
NET OPERATING INCOME	$	73,205		$	272		$	73,477		$	74,531		$	843			$	75,374
	Three months ended March 31, 2007									Three months ended March 31, 2006
SAME STORE COMPARISON	Malls			Power and Strip Centers			Total			Malls			Power and Strip Centers				Total
Real estate revenues:
Base rents	$	69,361		$	7,432		$	76,793		$	68,611		$	7,367			$	75,978
Expense reimbursements		35,071			1,857			36,928			33,346			1,624				34,970
Percentage rents		2,087			32			2,119			2,166			30				2,196
Lease termination revenue		475			2			477			1,965			—				1,965
Other real estate revenues		3,789			61			3,850			3,886			64				3,950
TOTAL REAL ESTATE REVENUES		110,783			9,384			120,167			109,974			9,085				119,059
Property operating expenses:
CAM and real estate taxes		(32,432	)		(1,852	)		(34,284	)		(30,800	)		(1,647	)			(32,447	)
Utilities		(6,426	)		(40	)		(6,466	)		(5,661	)		(42	)			(5,703	)
Other property operating expenses		(6,021	)		(191	)		(6,212	)		(6,316	)		(62	)			(6,378	)
TOTAL PROPERTY OPERATING EXPENSES		(44,879	)		(2,083	)		(46,962	)		(42,777	)		(1,751	)			(44,528	)
NET OPERATING INCOME	$	65,904		$	7,301		$	73,205		$	67,197		$	7,334			$	74,531

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

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Pennsylvania Real Estate Investment Trust

Computation of

Earnings Per Share

(in thousands, except per share amounts)

	Three months ended March 31,
	2007			2006(1)
Net income from continuing operations	$	3,199		$	2,734
Dividends on preferred shares		(3,403	)		(3,403	)
Net loss from continuing operations allocable to common shareholders		(204	)		(669	)
Dividends on unvested restricted shares		(272	)		(288	)
Loss from continuing operations used to calculate earnings per share - basic		(476	)		(957	)
Minority interest in properties - continuing operations		—			—
Loss from continuing operations used to calculate earnings per share - diluted	$	(476	)	$	(957	)
Income (loss) from discontinued operations	$	5,886		$	(2,094	)
Basic earnings (loss) per share:
Loss from continuing operations	$	(0.01	)	$	(0.02	)
Income (loss) from discontinued operations		0.16			(0.06	)
Income (loss) per share - basic	$	0.15		$	(0.08	)
Diluted earnings (loss) per share:
Loss from continuing operations	$	(0.01	)	$	(0.02	)
Income (loss) from discontinued operations		0.16			(0.06	)
Income (loss) per share - diluted	$	0.15		$	(0.08	)
Weighted average of common shares outstanding		37,009			36,580
Weighted average of unvested restricted stock		(446	)		(481	)
Weighted average shares outstanding - basic		36,563			36,099
Weighted average effect of common share equivalents (2)		—			—
Total weighted average shares outstanding - diluted		36,563			36,099

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

⁽²⁾ Effect of common share equivalents are anti-dilutive due to the loss from continuing operations allocable to common shareholders, therefore the effect of common share equivalents is not included for the three months ended March 31, 2007 and 2006.

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Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)

	Three months ended March 31,						Year Ended December 31,
	2007			2006(1)			2006(1)
FUNDS FROM OPERATIONS (FFO)
Net income	$	9,085		$	641		$	28,021
Dividends on preferred shares		(3,403	)		(3,403	)		(13,613	)
Net income available (loss allocable) to common shareholders		5,682			(2,762	)		14,408
Minority interest		1,067			401			3,288
Gain on sale of interests in real estate		(6,699	)		—			—
Gains/adjustment to gains on sales of interests in discontinued operations		—			—			(1,414	)
Depreciation and amortization: (2)
Wholly owned and consolidated partnerships		31,214			29,479			121,090
Unconsolidated partnerships		1,702			1,719			7,017
Discontinued operations		216			2,823			3,871
FFO	$	33,182		$	31,660		$	148,260
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	33,182		$	31,660		$	148,260
Adjustments:
Straight line rents		(566	)		(646	)		(2,918	)
Recurring capital expenditures		(635	)		(651	)		(15,172	)
Tenant allowances		(1,842	)		(3,198	)		(18,521	)
Capitalized leasing costs		(1,304	)		(1,257	)		(4,613	)
Amortization of debt premium		(3,447	)		(3,784	)		(13,821	)
Amortization of above- and below- market lease intangibles		5			133			101
FAD	$	25,393		$	22,257		$	93,316
Weighted average of common shares outstanding		36,563			36,099			36,256
Weighted average of O.P. Units outstanding		4,294			4,150			4,083
Weighted average shares and O.P. Units outstanding-basic		40,857			40,249			40,339
Weighted average effect of common share equivalents		356			621			599
Total weighted average shares outstanding, including O.P. Units		41,213			40,870			40,938
Net income (loss) per diluted share	$	0.15		$	(0.08	)	$	1.17
FFO per diluted share	$	0.81		$	0.77		$	3.62
FAD per diluted share	$	0.62		$	0.54		$	2.28
Dividend per Common Share	$	0.57		$	0.57		$	2.28
PAYOUT RATIOS
Payout Ratio of FFO		62.4	%(3)
Payout Ratio of FAD		97.0	%(3)

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

⁽²⁾ Excludes depreciation of non-real estate assets and amortization of deferred financing costs.

⁽³⁾ Twelve months ended March 31, 2007

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Pennsylvania Real Estate Investment Trust

2007 Leasing Activity Summary

	Number	GLA	Average Previous Base Rent psf		Average New Base Rent psf		$ Change in Base Rent psf		% Change in Base Rent psf		Annualized Tenant Improvements psf (1)
Previously Leased Space:
1st Quarter	19	60,893	$	29.86	$	32.15	$	2.30	7.7	%	$	0.54
Total/Average	19	60,893	$	29.86	$	32.15	$	2.30	7.7	%	$	0.54
Previously Vacant Space:
1st Quarter	37	235,070	$	—	$	23.54	$	23.54	N/A		$	6.83
Total/Average	37	235,070	$	—	$	23.54	$	23.54	N/A		$	6.83
Renewal(2):
1st Quarter	93	386,965	$	18.42	$	21.02	$	2.60	14.1	%	$	0.11
Total/Average	93	386,965	$	18.42	$	21.02	$	2.60	14.1	%	$	0.11
Anchor Renewal:
1st Quarter	1	100,115		2.98		2.98		—	0.0	%		—
Total/Average	1	100,115	$	—	$	—	$	—	0.0	%	$	—

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

⁽²⁾ This category includes expansions, relocations and lease extensions.

Page 10

Pennsylvania Real Estate Investment Trust

Summarized Rent Per Square Foot and Occupancy Percentages

	March 31, 2007						March 31, 2006						Change
	Avg Base Rent		Occupancy				Avg Base Rent		Occupancy				Avg Base Rent		Occupancy
			Total		Non-Anchor				Total		Non-Anchor				Total		Non-Anchor
Enclosed Malls weighted average(1)	$	30.03	88.2	%	86.0	%	$	29.50	91.2	%	85.8	%	1.8	%	-3.0	%	0.2	%
Power and Strip Centers weighted average	$	16.02	96.5	%	94.5	%	$	15.43	97.9	%	96.7	%	3.8	%	-1.4	%	-2.2	%
Retail Portfolio weighted average	$	26.85	89.3	%	87.3	%	$	26.29	92.1	%	87.5	%	2.1	%	-2.8	%	-0.2	%
Consolidated Properties	$	28.03	88.5	%	86.6	%	$	27.57	91.4	%	86.4	%	1.7	%	-2.9	%	0.2	%
Unconsolidated Properties	$	21.92	95.4	%	92.5	%	$	20.96	97.2	%	95.5	%	4.6	%	-1.8	%	-3.0	%
Same Properties	$	26.85	89.3	%	87.3	%	$	26.29	92.1	%	87.5	%	2.1	%	-2.8	%	-0.2	%

⁽¹⁾ Average base rent for tenants that lease individual spaces of 10,000 square feet or less and pay fixed rent. Average base rent for tenants greater than 10,000 square feet was $13.37/sq ft as of March 31, 2007, and $13.16/sq ft as of March 31, 2006.

Page 11

Pennsylvania Real Estate Investment Trust

Mall Sales and Rents Per Square Foot

			March 31, 2007						March 31, 2006						Change
	% of Current Quarter 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	37.0	%
Cherry Hill Mall			$	41.10	$	483	13.4	%	$	39.72	$	463	13.5	%	3.5	%	4.4	%	-0.1	%
Patrick Henry Mall				35.82		478	10.2	%		34.85		453	9.2	%	2.8	%	5.5	%	1.0	%
Jacksonville Mall				30.09		458	9.6	%		29.18		407	9.5	%	3.1	%	12.6	%	0.1	%
The Mall at Prince Georges				31.64		456	11.8	%		31.30		439	11.1	%	1.1	%	3.8	%	0.7	%
Willow Grove Park				40.82		447	13.8	%		39.61		428	14.2	%	3.1	%	4.5	%	-0.4	%
Lehigh Valley Mall				38.87		446	12.7	%		37.44		473	8.8	%	3.8	%	-5.8	%	3.9	%
Moorestown Mall				37.07		429	13.5	%		33.91		394	14.0	%	9.3	%	9.0	%	-0.6	%
The Gallery at Market East				35.41		422	12.0	%		35.82		393	12.2	%	-1.1	%	7.4	%	-0.3	%
Dartmouth Mall				28.10		420	11.1	%		27.80		415	10.3	%	1.1	%	1.2	%	0.8	%
Sales per square foot between $350 - $400	28.0	%
Exton Square Mall				36.02		399	14.2	%		35.94		374	14.7	%	0.2	%	6.7	%	-0.5	%
Springfield Mall				31.89		394	12.8	%		32.50		385	13.6	%	-1.9	%	2.4	%	-0.8	%
Viewmont Mall				30.56		385	11.3	%		30.24		372	10.3	%	1.1	%	3.6	%	1.0	%
Woodland Mall				42.33		378	18.7	%		44.30		377	19.6	%	-4.4	%	0.3	%	-0.9	%
Valley Mall				24.84		369	10.0	%		22.63		347	9.4	%	9.7	%	6.4	%	0.6	%
Valley View Mall				29.05		364	11.5	%		28.87		350	12.0	%	0.6	%	4.0	%	-0.5	%
Capital City Mall				32.13		363	11.0	%		33.57		353	10.4	%	-4.3	%	2.9	%	0.7	%
Francis Scott Key Mall				25.73		356	9.8	%		25.52		317	9.7	%	0.8	%	12.4	%	0.1	%
Wyoming Valley Mall				29.07		352	11.6	%		28.28		342	11.7	%	2.8	%	2.8	%	-0.2	%
Sales per square foot between $300 - $349	18.0	%
Cumberland Mall				23.83		332	11.7	%		23.42		341	10.4	%	1.7	%	-2.6	%	1.3	%
Palmer Park Mall				23.16		328	11.2	%		22.17		307	11.2	%	4.4	%	6.8	%	0.0	%
Orlando Fashion Square				34.11		327	13.7	%		33.52		331	14.5	%	1.7	%	-1.1	%	-0.8	%
Magnolia Mall				24.77		314	12.3	%		25.05		301	12.8	%	-1.1	%	4.2	%	-0.5	%
Wiregrass Commons				24.96		308	10.2	%		24.39		307	10.0	%	2.4	%	0.3	%	0.2	%
North Hanover Mall				23.15		306	10.0	%		20.21		294	9.4	%	14.6	%	4.2	%	0.6	%
South Mall				22.66		305	10.4	%		22.70		302	8.5	%	-0.2	%	1.1	%	1.9	%
Logan Valley Mall				24.53		304	11.5	%		23.73		306	10.5	%	3.3	%	-0.6	%	0.9	%
New River Valley Mall				22.76		303	10.3	%		23.12		283	10.6	%	-1.6	%	6.9	%	-0.3	%
Sales per square foot under $300	17.0	%
Washington Crown Center				21.91		299	11.9	%		22.27		290	11.4	%	-1.6	%	3.0	%	0.5	%
Crossroads Mall				20.14		282	9.4	%		19.97		257	9.4	%	0.9	%	9.9	%	0.0	%
Phillipsburg Mall				25.41		282	12.5	%		24.59		298	12.4	%	3.4	%	-5.5	%	0.1	%
Gadsden Mall				23.22		281	10.3	%		23.53		275	11.0	%	-1.3	%	2.3	%	-0.7	%
Nittany Mall				21.48		281	10.5	%		21.19		264	11.0	%	1.4	%	6.4	%	-0.5	%
Uniontown Mall				21.40		281	10.4	%		20.19		270	10.3	%	6.0	%	4.0	%	0.0	%
Plymouth Meeting				29.24		281	13.3	%		27.44		269	14.9	%	6.5	%	4.4	%	-1.5	%
Beaver Valley Mall				23.57		268	13.8	%		23.93		255	13.8	%	-1.5	%	4.9	%	0.0	%
Lycoming Mall				20.32		259	11.4	%		20.09		229	10.5	%	1.1	%	13.0	%	1.0	%
Chambersburg Mall				20.21		245	10.8	%		20.99		251	10.3	%	-3.7	%	-2.3	%	0.5	%
Voorhees Town Center				29.62		213	15.8	%		26.74		207	15.2	%	10.8	%	3.0	%	0.6	%
Enclosed Malls weighted average			$	30.03	$	361	12.2	%	$	29.50	$	346	11.9	%	1.8	%	4.3	%	0.2	%
Consolidated Properties			$	29.54	$	356	12.1	%	$	29.04	$	339	12.1	%	1.7	%	5.0	%	0.0	%
Unconsolidated Properties			$	36.19	$	426	12.7	%	$	35.42	$	437	10.6	%	2.2	%	-2.5	%	2.2	%
Same Properties			$	30.03	$	361	12.2	%	$	29.50	$	346	11.9	%	1.8	%	4.3	%	0.2	%

⁽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 12

Pennsylvania Real Estate Investment Trust

Mall Occupancy - Owned GLA

	March 31, 2007				March 31, 2006				Change
	Total		Non-Anchor		Total		Non-Anchor		Total		Non-Anchor
Beaver Valley Mall	90.4	%	78.1	%	90.6	%	79.6	%	-0.3	%	-1.5	%
Capital City Mall	95.2	%	91.8	%	96.2	%	93.1	%	-1.0	%	-1.3	%
Chambersburg Mall	88.9	%	76.4	%	91.6	%	82.0	%	-2.7	%	-5.7	%
Cherry Hill Mall(1)	62.2	%	93.5	%	93.7	%	93.7	%	-31.5	%	-0.2	%
Crossroads Mall	93.0	%	83.8	%	93.7	%	85.4	%	-0.7	%	-1.6	%
Cumberland Mall	97.0	%	94.9	%	97.8	%	96.1	%	-0.7	%	-1.3	%
Dartmouth Mall	96.3	%	93.9	%	96.3	%	93.9	%	0.0	%	0.0	%
Exton Square Mall	92.7	%	84.0	%	92.8	%	84.3	%	-0.1	%	-0.3	%
Francis Scott Key Mall(2)	95.6	%	90.5	%	93.6	%	86.9	%	2.0	%	3.6	%
Gadsden Mall	92.1	%	81.4	%	94.2	%	86.4	%	-2.1	%	-4.9	%
The Gallery at Market East(1)	41.8	%	81.8	%	84.8	%	80.0	%	-43.0	%	1.8	%
Jacksonville Mall	94.6	%	89.1	%	95.9	%	91.7	%	-1.3	%	-2.6	%
Lehigh Valley Mall	97.2	%	95.9	%	96.2	%	94.5	%	1.0	%	1.5	%
Logan Valley Mall	96.7	%	92.1	%	96.4	%	91.5	%	0.2	%	0.6	%
Lycoming Mall(2)	96.8	%	94.0	%	87.6	%	75.9	%	9.1	%	18.2	%
Magnolia Mall	93.2	%	82.9	%	94.3	%	85.7	%	-1.1	%	-2.8	%
Moorestown Mall	86.4	%	68.9	%	93.7	%	85.5	%	-7.3	%	-16.6	%
New River Valley Mall(2)	97.8	%	96.0	%	96.6	%	93.3	%	1.1	%	2.7	%
Nittany Mall	94.0	%	87.8	%	91.1	%	81.9	%	2.9	%	5.8	%
North Hanover Mall(2)	92.0	%	83.9	%	90.7	%	74.6	%	1.2	%	9.3	%
Orlando Fashion Square	91.0	%	80.8	%	91.2	%	81.3	%	-0.2	%	-0.5	%
Palmer Park Mall	99.2	%	97.5	%	99.8	%	99.5	%	-0.6	%	-2.0	%
Patrick Henry Mall	95.4	%	91.1	%	91.3	%	83.1	%	4.1	%	7.9	%
Phillipsburg Mall	92.4	%	82.3	%	92.2	%	81.9	%	0.1	%	0.3	%
Plymouth Meeting Mall	80.5	%	71.8	%	89.9	%	85.4	%	-9.4	%	-13.6	%
The Mall at Prince Georges	96.5	%	92.6	%	96.7	%	92.3	%	-0.2	%	0.4	%
South Mall	90.8	%	82.7	%	92.2	%	85.3	%	-1.4	%	-2.6	%
Springfield Mall	85.9	%	85.9	%	90.3	%	90.3	%	-4.4	%	-4.4	%
Uniontown Mall	94.2	%	85.3	%	94.5	%	86.1	%	-0.3	%	-0.8	%
Valley Mall	97.0	%	94.8	%	98.7	%	97.7	%	-1.7	%	-2.9	%
Valley View Mall(2)	92.6	%	89.7	%	85.0	%	78.9	%	7.5	%	10.8	%
Viewmont Mall	97.6	%	93.7	%	99.2	%	98.0	%	-1.6	%	-4.3	%
Voorhees Town Center(2)	54.6	%	53.8	%	31.6	%	52.2	%	23.0	%	1.6	%
Washington Crown Center	90.1	%	81.7	%	90.9	%	83.2	%	-0.8	%	-1.5	%
Willow Grove Park(1)	65.7	%	87.5	%	94.6	%	91.1	%	-28.9	%	-3.5	%
Wiregrass Mall	84.6	%	84.6	%	79.9	%	79.9	%	4.7	%	4.7	%
Woodland Mall	89.2	%	87.3	%	87.3	%	87.3	%	1.9	%	0.0	%
Wyoming Valley Mall	92.5	%	78.7	%	93.8	%	82.4	%	-1.3	%	-3.7	%
Enclosed Malls weighted average	88.2	%	86.0	%	91.2	%	85.8	%	-3.0	%	0.2	%
Consolidated Properties	88.0	%	86.0	%	91.1	%	85.7	%	-3.1	%	0.3	%
Unconsolidated Properties	92.8	%	86.0	%	94.2	%	88.6	%	-1.4	%	-2.6	%
Same Properties	88.2	%	86.0	%	91.2	%	85.8	%	-3.0	%	0.2	%

⁽¹⁾ The total occupancy percentages for Cherry Hill Mall, The Gallery at Market East and Willow Grove Park include former Strawbridge's which are currently vacant, pending redevelopment. These vacant department stores represent 33.5%, 51.5% and 29.0% of the owned mall GLA for Cherry Hill Mall, The Gallery at Market East and Willow Grove Park, respectively.

⁽²⁾ 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 13

Pennsylvania Real Estate Investment Trust

Power Center and Strip Center Rents Per Square Foot and Occupancy Percentages

	March 31, 2007						March 31, 2006						Change
	Avg Base Rent		Occupancy				Avg Base Rent		Occupancy				Avg Base Rent		Occupancy
			Total		Non-Anchor				Total		Non-Anchor				Total		Non-Anchor
Power and Strip Centers
Christiana Power Center	$	20.83	100.0	%	100.0	%	$	20.50	100.0	%	100.0	%	1.6	%	0.0	%	0.0	%
Creekview Shopping Center		14.65	100.0	%	100.0	%		14.64	100.0	%	100.0	%	0.1	%	0.0	%	0.0	%
Crest Plaza		16.94	96.6	%	93.6	%		16.40	100.0	%	100.0	%	3.3	%	-3.4	%	-6.4	%
The Commons at Magnolia		13.27	92.0	%	84.4	%		13.49	96.2	%	92.4	%	-1.6	%	-4.1	%	-8.0	%
Metroplex Shopping Center		19.09	100.0	%	100.0	%		18.67	100.0	%	100.0	%	2.3	%	0.0	%	0.0	%
Northeast Tower Center		15.28	96.6	%	94.4	%		14.83	96.6	%	94.4	%	3.0	%	0.0	%	0.0	%
The Court at Oxford Valley		16.18	100.0	%	100.0	%		14.95	100.0	%	100.0	%	8.3	%	0.0	%	0.0	%
Paxton Towne Centre		15.52	93.5	%	90.3	%		15.28	93.5	%	90.1	%	1.6	%	0.0	%	0.2	%
Red Rose Commons		13.86	99.2	%	99.2	%		13.86	99.2	%	99.2	%	0.0	%	0.0	%	0.0	%
Springfield Park		21.68	90.9	%	73.5	%		20.25	87.8	%	64.3	%	7.1	%	3.2	%	9.2	%
Whitehall Mall		11.62	90.9	%	80.6	%		10.70	98.6	%	97.0	%	8.6	%	-7.7	%	-16.4	%
Weighted Average	$	16.02	96.5	%	94.5	%	$	15.43	97.9	%	96.7	%	3.8	%	-1.4	%	-2.2	%
Consolidated Properties	$	16.04	96.3	%	93.9	%	$	15.78	96.9	%	94.8	%	1.7	%	-0.6	%	-0.9	%
Unconsolidated Properties	$	16.01	96.6	%	94.9	%	$	15.21	98.6	%	98.0	%	5.3	%	-2.1	%	-3.1	%
Same Properties	$	16.02	96.5	%	94.5	%	$	15.43	97.9	%	96.7	%	3.8	%	-1.4	%	-2.2	%

Page 14

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants (by share of PREIT’s Annualized Minimum Rent)

(dollars in thousands)

	Paying Minimum Rent		Paying Percentage of Sales in lieu of Minimum Rent (2)		Total		Minimum Rent
Tenant(1)	Number of Stores	GLA	Number of Stores	GLA	Total Number of Stores	Total GLA	Annualized Minimum Rent		PREIT’s share of Annualized Minimum Rent (3)		Percent of PREIT’s Total Retail Minimum Rent
Gap, Inc.	51	649,076	4	33,106	55	682,182	$	13,343	$	12,426	4.12	%
Limited Brands, Inc.	84	512,236	16	60,894	100	573,130		13,144		12,388	4.10	%
Foot Locker, Inc.	82	425,074	2	3,575	84	428,649		9,074		8,592	2.85	%
JC Penney Company, Inc.	23	2,281,660	6	824,327	29	3,105,987		6,999		6,999	2.32	%
Zale Corporation	88	75,711	1	289	89	76,000		6,385		6,061	2.01	%
Sears Holding Corporation	24	2,796,396	6	881,839	30	3,678,235		5,445		5,302	1.76	%
American Eagle Outfitters, Inc.	32	178,796	2	8,813	34	187,609		4,849		4,638	1.54	%
Sterling Jewelers, Inc.	44	64,147	0	—	44	64,147		4,549		4,361	1.44	%
Transworld Entertainment Corp.	39	166,296	4	16,208	43	182,504		4,150		3,918	1.30	%
Luxottica Group S.p.A.	54	129,300	1	548	55	129,848		4,097		3,815	1.26	%
Regis Corporation	103	129,143	0	—	103	129,143		3,833		3,707	1.23	%
Borders Group, Inc.	27	204,216	3	15,476	30	219,692		3,936		3,669	1.22	%
The Finish Line, Inc.	34	159,451	3	14,856	37	174,307		3,503		3,452	1.14	%
Pacific Sunwear of California	37	130,888	2	7,246	39	138,134		3,434		3,283	1.09	%
Hallmark Cards, Inc.	39	149,277	5	23,937	44	173,214		3,273		3,166	1.05	%
Genesco, Inc.	58	68,778	0	—	58	68,778		2,876		2,840	0.94	%
Aeropostale, Inc.	34	115,732	0	—	34	115,732		2,988		2,837	0.94	%
RadioShack	49	96,543	0	—	49	96,543		2,847		2,803	0.93	%
Dick’s Sporting Goods	5	249,958	1	45,000	6	294,958		3,656		2,779	0.92	%
The Bon-Ton Dept. Stores, Inc.	13	1,008,613	0	—	13	1,008,613		2,768		2,768	0.92	%
Total Top 20 Tenants	920	9,591,291	56	1,936,114	976	11,527,405	$	105,149	$	99,804	33.06	%
Total Retail Leases					3,407				$	301,896	100.00	%

⁽¹⁾ Tenant includes all brands and concepts of the tenant.

⁽²⁾ Income from lease(s) in which tenant pays percentage of sales in lieu of minimum rent or common area costs are not included in annualized minimum rent.

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

Page 15

Pennsylvania Real Estate Investment Trust

Lease Expirations

(dollars in thousands except psf amounts)

Non-Anchors(1)
		Gross Leasable Area			Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring	Expiring GLA	Percent of Total		Min Rent in Expiring Year		PREIT’s Share of Min Rent in Expiring Year(3)		Percent of PREIT’s Total		Average Expiring Minimum Rent psf
Holdover	157	359,525	3.1	%		8,660		8,269	3.1	%		24.09
2007	274	582,776	4.9	%		14,505		13,697	5.1	%		24.89
2008	461	1,253,687	10.6	%		31,197		29,973	11.2	%		24.88
2009	444	1,192,499	10.0	%		30,742		29,717	11.1	%		25.78
2010	437	1,474,564	12.4	%		35,350		33,897	12.7	%		23.97
2011	370	1,509,966	12.7	%		36,452		32,578	12.2	%		24.14
2012	248	1,006,844	8.5	%		26,895		24,636	9.2	%		26.71
2013	194	713,193	6.0	%		16,853		15,607	5.8	%		23.63
2014	153	554,737	4.7	%		15,218		13,311	5.0	%		27.43
2015	182	792,875	6.7	%		20,376		18,026	6.7	%		25.70
Thereafter	372	2,429,195	20.4	%		51,431		47,675	17.9	%		21.17
Total/Average	3,292	11,869,861	100.0	%	$	287,678	$	267,386	100.0	%	$	24.24
Anchors(1)
		Gross Leasable Area			Annualized Minimum Rent
Lease Expiration Year(2)	Number of Leases Expiring	Expiring GLA	Percent of Total		Min Rent in Expiring Year		PREIT’s Share of Min Rent in Expiring Year(3)		Percent of PREIT’s Total		Average Expiring Minimum Rent psf
Holdover	3	324,715	2.9	%	$	511	$	501	1.5	%	$	1.57
2007	1	83,560	0.7	%		191		191	0.6	%		2.28
2008	12	952,111	8.5	%		2,577		2,577	7.5	%		2.71
2009	9	915,799	8.1	%		2,614		2,222	6.4	%		2.85
2010	20	1,886,419	16.8	%		5,410		5,410	15.7	%		2.87
2011	23	1,885,550	16.7	%		6,471		5,348	15.5	%		3.43
2012	8	716,766	6.4	%		1,898		1,861	5.4	%		2.65
2013	8	652,645	5.8	%		3,217		3,217	9.3	%		4.93
2014	6	662,582	5.9	%		2,081		2,081	6.0	%		3.14
2015	1	85,212	0.8	%		469		469	1.4	%		5.50
Thereafter	24	3,091,813	27.4	%		11,963		10,633	30.7	%		3.87
Total/Average	115	11,257,172	100.0	%	$	37,402	$	34,510	100.0	%	$	3.32

⁽¹⁾ Only includes owned space.

⁽²⁾ Accounts for all contiguous anchor space as one lease.

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

Page 16

Pennsylvania Real Estate Investment Trust

Gross Leasable Area Summary as of March 31, 2007

	Owned GLA
	Anchors	Non-anchors	Total	GLA Not Owned	Total GLA
Malls(1)
Beaver Valley Mall	511,267	400,821	912,088	204,770	1,116,858
Capital City Mall	204,301	286,038	490,339	120,000	610,339
Chambersburg Mall	241,690	212,663	454,353	—	454,353
Cherry Hill Mall(2)	261,885	520,231	782,116	478,885	1,261,001
Crossroads Mall	256,248	195,528	451,776	—	451,776
Cumberland Mall	283,365	385,395	668,760	273,230	941,990
Dartmouth Mall	208,460	322,520	530,980	140,000	670,980
Exton Square Mall	440,301	369,922	810,223	277,468	1,087,691
Francis Scott Key Mall	291,620	251,904	543,524	139,333	682,857
Gadsden Mall	274,060	203,290	477,350	—	477,350
The Gallery at Market East(3)	683,471	396,390	1,079,861	—	1,079,861
Jacksonville Mall	242,115	233,622	475,737	—	475,737
Lehigh Valley Mall	212,000	451,636	663,636	371,986	1,035,622
Logan Valley Mall	454,387	326,186	780,573	—	780,573
Lycoming Mall	321,441	380,954	702,395	120,000	822,395
Magnolia Mall	343,118	228,071	571,189	—	571,189
Moorestown Mall	408,356	315,334	723,690	321,200	1,044,890
New River Valley Mall	175,306	221,097	396,403	—	396,403
Nittany Mall	221,462	215,654	437,116	95,000	532,116
North Hanover Mall	156,308	155,148	311,456	—	311,456
Orlando Fashion Square	491,999	436,698	928,697	155,576	1,084,273
Palmer Park Mall	314,235	143,459	457,694	—	457,694
Patrick Henry Mall	279,619	296,229	575,848	140,000	715,848
Phillipsburg Mall	326,170	246,377	572,547	—	572,547
Plymouth Meeting Mall	185,000	414,061	599,061	214,635	813,696
The Mall at Prince Georges	479,619	431,462	911,081	—	911,081
South Mall	188,858	216,347	405,205	—	405,205
Springfield Mall	—	221,519	221,519	367,176	588,695
Uniontown Mall	421,378	276,816	698,194	—	698,194
Valley Mall	280,549	378,742	659,291	243,400	902,691
Valley View Mall	96,357	247,099	343,456	254,596	598,052
Viewmont Mall	386,262	238,383	624,645	120,000	744,645
Voorhees Town Center	4,404	278,087	282,491	396,783	679,274
Washington Crown Center	245,401	290,539	535,940	140,095	676,035
Willow Grove Park(4)	453,740	335,971	789,711	413,121	1,202,832
Wiregrass Commons	—	229,892	229,892	403,163	633,055
Woodland Mall	71,000	413,348	484,348	725,186	1,209,534
Wyoming Valley Mall	592,110	321,842	913,952	—	913,952
Total Malls (38 properties)	11,007,862	11,489,275	22,497,137	6,115,603	28,612,740
Power and Strip Centers
Christiana Power Center	190,814	111,595	302,409	—	302,409
Creekview Shopping Center	—	136,086	136,086	288,916	425,002
Crest Plaza Shopping Center	53,445	60,826	114,271	143,130	257,401
The Commons at Magnolia	50,571	52,915	103,486	126,200	229,686
Metroplex Shopping Center	67,185	410,276	477,461	300,729	778,190
Northeast Tower Center	119,388	182,536	301,924	175,311	477,235
The Court at Oxford Valley	176,831	280,032	456,863	247,623	704,486
Paxton Towne Centre	151,627	297,836	449,463	273,058	722,521
Red Rose Commons	—	263,452	263,452	199,590	463,042
Springfield Park	83,539	43,432	126,971	145,669	272,640
Whitehall Mall	294,635	262,384	557,019	—	557,019
Total Power and Strip Centers (11 properties)	1,188,035	2,101,370	3,289,405	1,900,226	5,189,631
CONSOLIDATED PROPERTIES	11,361,707	11,657,914	23,019,621	6,383,056	29,402,677
UNCONSOLIDATED PROPERTIES	834,190	1,932,731	2,766,921	1,632,773	4,399,694
TOTAL PROPERTIES	12,195,897	13,590,645	25,786,542	8,015,829	33,802,371

(1) Does not include 108,100 sf at Westgate anchor pad in Bethlehem, PA leased to Bon-Ton with expiration date of 11/23/2010.

(2) Includes 261,885 square feet of anchor space under redevelopment.

(3) Includes 556,200 square feet of anchor space subject to redevelopment plans.

(4) Includes 228,740 square feet of anchor space under redevelopment.

Page 17

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2007

Properties(1)	Ownership Interest	Date Acquired	Year Built/Last Renovated	Years Since Renovation	Anchors /Majors Tenants	Lease Expiration
MALLS
Beaver Valley Mall Monaca, PA	100%	2002	1970/1991	16	Boscov’s JC Penney Macy’s Sears	9/30/18 9/30/17 (2) 8/15/11
Capital City Mall Camp Hill, PA	100%	2003	1974/2005	2	JC Penney Macy’s Sears	11/30/10 (2) 7/28/09
Chambersburg Mall Chambersburg, PA	100%	2003	1982	25	Bon-Ton JC Penney Sears Value City	1/28/11 3/31/12 2/9/10 5/31/07
Cherry Hill Mall Cherry Hill, NJ	100%	2003	1961/1990	17	JC Penney Macy’s	(2) (2)
Crossroads Mall (3) Beckley, WV	100%	2003	1981	26	Belk JC Penney Sears	11/4/08 12/31/11 3/31/11
Cumberland Mall Vineland, NJ	100%	2005	1973/2003	4	Boscov’s BJ’s Home Depot JC Penney Value City	(2) (2) 10/31/19 11/30/08 7/31/13
Dartmouth Mall Dartmouth, MA	100%	1997	1971/2000	7	JC Penney Macy’s Sears	7/31/09 (2) 4/12/16
Exton Square Mall (3) Exton, PA	100%	2003	1973/2000	7	Boscov’s JC Penney K-Mart Macy’s Sears	10/31/19 5/31/20 (2) (2) 1/31/20
Francis Scott Key Mall Frederick, MD	100%	2003	1978/1991	16	JC Penney Macy’s Sears Value City	9/30/11 (2) 7/31/08 6/30/10
Gadsden Mall Gadsden, AL	100%	2005	1974/1990	17	Belk Parisian Sears	2/19/11 7/31/14 3/5/09
The Gallery at Market East (3) (4) Philadelphia, PA	100%	2003	1977/1990	17	Burlington Coat Factory	2/28/32
Jacksonville Mall Jacksonville, NC	100%	2003	1981/1998	9	Belk JC Penney Sears	8/21/11 8/31/10 8/4/11
Lehigh Valley Mall (5) Allentown, PA	50%	1973	1977/1996	11	Boscov’s JC Penney Macy’s	(2) (2) 7/31/12
Logan Valley Mall Altoona, PA	100%	2003	1960/1997	10	JC Penney Macy’s Sears	6/30/17 1/31/10 10/31/16
Lycoming Mall Pennsdale, PA	100%	2003	1978/1990	17	Bon-Ton JC Penney Macy’s Sears Value City	7/31/11 10/31/10 (2) 7/31/08 7/31/08
Magnolia Mall Florence, SC	100%	1997	1979/1992	15	Belk Best Buy JC Penney Sears	1/31/11 1/31/13 3/31/12 10/16/09
The Mall at Prince Georges Hyattsville, MD	100%	1998	1959/2004	3	JC Penney Macy’s Target	7/31/11 10/31/08 1/31/10
Moorestown Mall Moorestown, NJ	100%	2003	1963/2000	7	Boscov’s Lord & Taylor Macy’s Sears	10/31/10 (2) (2) 10/5/22
New River Valley Mall Christiansburg, VA	100%	2003	1988	19	Belk JC Penney Sears	4/19/08 3/31/08 8/2/08
Nittany Mall State College, PA	100%	2003	1968/1990	17	Bon-Ton JC Penney Macy’s Sears	1/31/08 7/31/10 (2) 8/31/10

Page 18

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2007 (continued)

Properties(1)	Ownership Interest		Date Acquired	Year Built/Last Renovated	Years Since Renovation	Anchors/Majors Tenants	Lease Expiration
North Hanover Mall Hanover, PA	100	%	2003	1967/1999	8	JC Penney Sears	1/31/11 11/30/09
Orlando Fashion Square (3)  Orlando, FL	100	%	2004	1973/2003	4	Dillard’s JC Penney Macy’s Sears	1/31/14 4/30/13 10/31/71 (2)
Palmer Park Mall Easton, PA	100	%	1972/2003	1972/1998	9	Bon-Ton Boscov’s	7/25/14 10/31/18
Patrick Henry Mall Newport News, VA	100	%	2003	1988/2005	2	Dick’s Sporting Goods Dillard’s JC Penney Macy’s	1/31/22 9/22/13 10/31/15 (2)
Phillipsburg Mall Phillipsburg, NJ	100	%	2003	1989/2003	4	Bon-Ton JC Penney Kohl’s Sears	1/31/10 3/31/10 1/31/25 4/30/09
Plymouth Meeting Mall (3) Plymouth Meeting, PA	100	%	2003	1966/1999	8	AMC Theater Boscov’s Macy’s	12/31/18 10/31/16 (2)
South Mall Allentown, PA	100	%	2003	1975/1992	15	Bon-Ton Stein Mart Steve & Barry’s	1/28/11 10/31/11 1/31/11
Springfield Mall Springfield, PA	50	%	2005	1974/1997	10	Macy’s TBD	(2) (2)
Uniontown Mall (3) Uniontown, PA	100	%	2003	1972/1990	17	Bon-Ton JC Penney Roomful Express Furn. Sears Teletech Customer Care Value City	1/31/11 10/31/10 3/26/10 2/25/13 6/28/08 7/31/07
Valley Mall Hagerstown, MD	100	%	2003	1974/1999	8	Bon-Ton JC Penney Macy’s Sears	1/31/14 10/3/09 (2) (2)
Valley View Mall La Crosse, WI	100	%	2003	1980/2001	6	Herberger’s JC Penney Macy’s Sears	(2) 7/31/10 (2) (2)
Viewmont Mall Scranton, PA	100	%	2003	1968/2006	1	JC Penney Macy’s Sears	10/31/10 (2) 12/31/10
Voorhees Town Center (3) Voorhees, NJ	100	%	2003	1970/1998	9	Boscov’s Macy’s	(2) (2)
Washington Crown Center Washington, PA	100	%	2003	1969/1999	8	Bon-Ton Gander Mountain Sports Macy’s Sears	1/31/10 7/24/13 (2) 8/17/09
Willow Grove Park Willow Grove, PA	100	%	2000/2003	1982/2001	6	Bloomingdale’s Macy’s Sears	(2) 1/31/22 (2)
Wiregrass Commons (3) Dothan, AL	100	%	2003	1986/1999	8	Dillard’s JC Penney McRae’s Parisian	(2) (2) (2) (2)

Page 19

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2007 (continued)

Properties(1)	Ownership Interest		Date Acquired	Year Built/Last Renovated	Years Since Renovation	Anchors /Majors Tenants	Lease Expiration
Woodland Mall Grand Rapids, MI	100	%	2005	1968/1998	9	JC Penney Kohl’s Macy’s Sears	(2) 1/31/19 (2) (2)
Wyoming Valley Mall Wilkes-Barre, PA	100	%	2003	1974/2006	1	Bon-Ton JC Penney Macy’s Sears	1/31/12 10/31/07 1/31/12 8/1/11
POWER CENTERS
Christiana Power Center Newark, DE	100	%	1998	1998	9	Costco Dick’s Sporting Goods	9/30/18 11/30/13
Creekview Shopping Center Warrington, PA	100	%	1999	2001	6	Genuardi’s Lowe’s Target	12/31/21 (2) (2)
Metroplex Shopping Center (5) Plymouth Meeting, PA	50	%	1999	2001	6	Giant Food Store Lowe’s Target	2/28/21 (2) (2)
Northeast Tower Center Philadelphia, PA	100	%	1998	1997	10	Home Depot Raymour & Flanigan Wal-Mart	(2) (2) 1/31/14
The Court at Oxford Valley (5) Langhorne, PA	50	%	1997	1996	11	Best Buy BJ’s Dick’s Sporting Goods Home Depot Linens N Things	12/31/11 (2) 4/15/11 (2) 2/14/17
Paxton Towne Centre Harrisburg, PA	100	%	1999	2001	6	Costco Kohl’s Target Weis Markets	(2) 1/25/21 (2) 11/30/20
Red Rose Commons (5) Lancaster, PA	50	%	1998	1998	9	Home Depot Weis Markets	(2) (2)
Whitehall Mall (5) Allentown, PA	50	%	1964	1964/1998	9	Bed, Bath & Beyond Kohl’s Sears	1/31/10 3/9/07 9/18/11
STRIP CENTERS
Crest Plaza Shopping Center Allentown, PA	100	%	1964	1959/2003	4	Target Weis Market	(2) 10/31/14
The Commons at Magnolia Florence, SC	100	%	1999	1991/2002	5	Bed, Bath & Beyond Goody’s Target	1/31/13 5/31/12 (2)
Springfield Park I & II Springfield, PA	50	%	1997/1998	1997/1998	9	Bed, Bath & Beyond LA Fitness Target	1/31/09 3/31/17 (2)

⁽¹⁾ Does not include 108,100 sf at Westgate Anchor pad in Bethlehem, PA leased to Bon-Ton with expiration date of 11/23/2010.

⁽²⁾ Space is not owned by PREIT.

⁽³⁾ Properties are subject to a ground lease.

⁽⁴⁾ The Gallery at Market East is a consolidation of Gallery at Market East I and Gallery at Market East II.

⁽⁵⁾ Property is managed by a third party.

Page 20

Pennsylvania Real Estate Investment Trust

Balance Sheet

Proportionate Consolidation Method ⁽¹⁾

(in thousands, except per share amounts)

	March 31, 2007											December 31, 2006
	GAAP			Share of Unconsolidated Partnerships			Assets Held for Sale		Total			GAAP			Share of Unconsolidated Partnerships			Assets Held for Sale			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	2,908,517		$	183,574		$	—	$	3,092,091		$	2,909,862		$	183,552		$	—		$	3,093,414
Construction in progress		247,397			10,347			—		257,744			216,892			3,670			—			220,562
Land held for development		5,616			166			—		5,782			5,616			166			—			5,782
Other properties		—			—			—		—			—			—			1,339			1,339
TOTAL INVESTMENTS IN REAL ESTATE		3,161,530			194,087			—		3,355,617			3,132,370			187,388			1,339			3,321,097
Accumulated depreciation		(328,948	)		(40,677	)				(369,625	)		(306,893	)		(39,188	)		—			(346,081	)
Net investments in real estate		2,832,582			153,410			—		2,985,992			2,825,477			148,200			1,339			2,975,016
Investments in partnerships, at equity		37,821			(37,821	)				—			38,621			(38,621	)		—			—
Other assets:
Cash and cash equivalents		18,199			1,839			—		20,038			15,808			2,919			—			18,727
Rents and other receivables(2)		44,198			9,654			—		53,852			46,065			9,861			—			55,926
Assets held for sale		98			—			—		98			1,401			—			(1,339	)		62
Intangible assets, net		128,167			1,108			—		129,275			139,117			1,191			—			140,308
Deferred costs and other assets, net of accumulated amortization		88,436			8,599			—		97,035			79,120			8,733			—			87,853
TOTAL OTHER ASSETS		316,919			(16,621	)		—		300,298			320,132			(15,917	)		(1,339	)		302,876
TOTAL ASSETS	$	3,149,501		$	136,789		$	—	$	3,286,290		$	3,145,609		$	132,283		$	—		$	3,277,892
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	1,510,355		$	189,474		$	—	$	1,699,829		$	1,572,908		$	189,940		$	—		$	1,762,848
Debt premium on mortgage notes payable		23,217			—			—		23,217			26,663			—			—			26,663
Credit Facility		425,000			—			—		425,000			332,000			—			—			332,000
Notes payable		1,148			—			—		1,148			1,148			—			—			1,148
Distributions in excess of partnership investments		61,893			(61,893	)		—		—			63,439			(63,439	)		—			—
Liabilities related to assets held for sale		55						—		55			34			—			—			34
Other liabilities		94,013			9,208			—		103,221			105,754			5,782			—			111,536
TOTAL LIABILITIES		2,115,681			136,789			—		2,252,470			2,101,946			132,283			—			2,234,229
Minority interest		112,844			—			—		112,844			114,363			—			—			114,363
Shareholders’ equity:
Shares of beneficial interest at $1 par		37,107			—			—		37,107			36,947			—			—			36,947
Preferred shares at $0.01 par		25			—			—		25			25			—			—			25
Capital contributed in excess of par		919,526			—			—		919,526			917,322			—			—			917,322
Accumulated other comprehensive income		12,650			—			—		12,650			7,893			—			—			7,893
Distributions in excess of net income		(48,332	)		—			—		(48,332	)		(32,887	)		—			—			(32,887	)
TOTAL SHAREHOLDERS’ EQUITY		920,976			—			—		920,976			929,300			—			—			929,300
TOTAL LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS’ EQUITY	$	3,149,501		$	136,789		$	—	$	3,286,290		$	3,145,609		$	132,283		$	—		$	3,277,892

⁽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 $23.1 million ($19.9 million wholly owned, $3.2 million partnership) and $22.6 million ($19.4 million wholly owned, $3.2 million partnership) for March 31, 2007 and December 31, 2006, respectively.

Page 21

Pennsylvania Real Estate Investment Trust

Balance Sheet

Property Type⁽¹⁾

(in thousands, except per share amounts)

	March 31, 2007												December 31, 2006
	Malls			Power and Strip Centers			Corporate and Other Development Properties			Total			Malls			Power and Strip Centers			Corporate and Other Development Properties			Total
ASSETS
Investments in real estate:
Investments in real estate, at cost	$	2,806,507		$	278,061		$	13,305		$	3,097,873		$	2,808,939		$	278,202		$	13,394		$	3,100,535
Construction in progress		142,157			42			115,545			257,744			117,871			(8	)		102,699			220,562
Accumulated depreciation		(309,338	)		(59,347	)		(940	)		(369,625	)		(288,069	)		(57,323	)		(689	)		(346,081	)
Net investments in real estate		2,639,326			218,756			127,910			2,985,992			2,638,741			220,871			115,404			2,975,016
Other assets:
Cash		12,281			1,229			6,528			20,038			13,362			1,514			3,851			18,727
Rents and other receivables(2)		36,590			13,175			4,087			53,852			38,379			13,074			4,473			55,926
Assets held for sale		107			(9	)					98			—			52			10			62
Intangible assets, net		117,470			—			11,805			129,275			128,503			—			11,805			140,308
Deferred costs and other assets, net of accumulated amortization		52,821			10,319			33,895			97,035			46,424			10,129			31,300			87,853
Total other assets		219,269			24,714			56,315			300,298			226,668			24,769			51,439			302,876
TOTAL ASSETS	$	2,858,595		$	243,470		$	184,225		$	3,286,290		$	2,865,409		$	245,640		$	166,843		$	3,277,892
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	1,607,978		$	91,851		$	—		$	1,699,829		$	1,670,436		$	92,412		$	—		$	1,762,848
Debt premium on mortgage notes payable		22,694			523			—			23,217			26,052			611			—			26,663
Credit Facility		—			—			425,000			425,000			—			—			332,000			332,000
Notes payable		1,148			—			—			1,148			1,148			—			—			1,148
Liabilities related to assets held for sale		42			13			—			55			—			15			19			34
Other liabilities		59,110			3,684			40,427			103,221			56,468			2,962			52,106			111,536
TOTAL LIABILITIES		1,690,972			96,071			465,427			2,252,470			1,754,104			96,000			384,125			2,234,229
Minority interest		—			—			112,844			112,844			—			—			114,363			114,363
Shareholders’ equity:
Shares of beneficial interest at $1 par		—			—			37,107			37,107			—			—			36,947			36,947
Preferred shares at $0.01 par		—			—			25			25			—			—			25			25
Capital contributed in excess of par		—			—			919,526			919,526			—			—			917,322			917,322
Accumulated other comprehensive income		—			—			12,650			12,650			—			—			7,893			7,893
Distributions in excess of net income		—			—			(48,332	)		(48,332	)		—			—			(32,887	)		(32,887	)
Net investment		1,167,623			147,399			(1,315,022	)		—			1,111,305			149,640			(1,260,945	)		—
TOTAL SHAREHOLDERS’ EQUITY		1,167,623			147,399			(394,046	)		920,976			1,111,305			149,640			(331,645	)		929,300
TOTAL LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS’ EQUITY	$	2,858,595		$	243,470		$	184,225		$	3,286,290		$	2,865,409		$	245,640		$	166,843		$	3,277,892

⁽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 $23.1 million ($19.9 million wholly owned, $3.2 million partnership) and $22.6 million ($19.4 million wholly owned, $3.2 million partnership) for March 31, 2007 and December 31, 2006, respectively.

Page 22

Pennsylvania Real Estate Investment Trust

Investment in Real Estate

(in thousands)

	March 31, 2007								December 31, 2006
	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 Malls
Beaver Valley Mall	$	58,698	$	2,066	$	8,238	$	52,526	$	58,490	$	1,024	$	7,745	$	51,769
Capital City Mall		91,984		331		8,528		83,787		91,929		203		7,703		84,429
Chambersburg Mall		36,269		—		3,439		32,830		36,269		—		3,166		33,103
Cherry Hill Mall		210,153		22,938		20,515		212,576		210,153		21,319		19,115		212,357
Crossroads Mall		33,441		—		3,800		29,641		33,441		—		3,500		29,941
Cumberland Mall		56,357		1,072		2,745		54,684		56,338		1,072		2,409		55,001
Dartmouth Mall		60,724		272		17,148		43,848		60,692		70		16,487		44,275
Exton Square Mall		145,728		28		13,763		131,993		145,590		27		12,930		132,687
Francis Scott Key Mall		68,343		3		6,163		62,183		67,712		240		5,583		62,369
Gadsden Mall		51,657		—		2,690		48,967		51,636		—		2,349		49,287
The Gallery at Market East		78,470		27,452		7,312		98,610		78,426		26,243		6,768		97,901
Jacksonville Mall		68,230		164		6,642		61,752		68,123		77		6,128		62,072
Logan Valley Mall		93,142		—		10,361		82,781		93,042		—		9,560		83,482
Lycoming Mall		71,428		94		5,668		65,854		70,370		1,511		5,022		66,859
Magnolia Mall		67,486		10,196		13,098		64,584		67,429		4,684		12,705		59,408
Moorestown Mall		77,090		1,128		11,552		66,666		77,025		217		10,873		66,369
New River Valley Mall		42,696		10,622		3,448		49,870		40,918		9,064		2,979		47,003
Nittany Mall		41,707		—		4,059		37,648		41,708		—		3,735		37,973
North Hanover Mall		30,572		2,303		3,038		29,837		30,049		445		2,782		27,712
Orlando Fashion Square		112,123		237		7,014		105,346		112,113		204		6,232		106,085
Palmer Park Mall		33,847		—		8,856		24,991		33,847		—		8,616		25,231
Patrick Henry Mall		136,764		68		12,162		124,670		136,694		207		10,876		126,025
Phillipsburg Mall		50,904		588		4,659		46,833		50,900		430		4,296		47,034
Plymouth Meeting Mall		63,030		23,633		9,128		77,535		62,978		21,851		8,555		76,274
The Mall at Prince Georges		98,933		135		19,528		79,540		97,788		679		18,649		79,818
Schuylkill Mall		—		—		—		—		8,411		—		1,062		7,349
South Mall		28,589		—		2,627		25,962		28,589		15		2,418		26,186
Uniontown Mall		36,345		—		4,239		32,106		36,337		—		3,904		32,433
Valley Mall		87,212		474		9,527		78,159		86,977		268		8,792		78,453
Valley View Mall		66,041		1		5,649		60,393		65,884		28		5,177		60,735
Viewmont Mall		82,150		280		6,607		75,823		81,753		264		6,024		75,993
Voorhees Town Center		14,334		9,805		4,405		19,734		16,634		5,746		4,149		18,231
Washington Crown Center		41,681		—		6,304		35,377		41,581		—		5,843		35,738
Westgate Anchor Pad		3,450		—		—		3,450		3,450		—		—		3,450
Willow Grove Park		177,584		19,135		23,680		173,039		177,536		18,664		22,357		173,843
Wiregrass Mall		38,255		30		3,541		34,744		38,255		42		3,271		35,026
Woodland Mall		178,512		—		7,075		171,437		178,296		—		5,660		172,636
Wyoming Valley Mall		99,600		1,444		8,110		92,934		98,700		577		7,325		91,952
Total Consolidated Malls		2,733,529		134,499		295,318		2,572,710		2,736,063		115,171		274,745		2,576,489
Unconsolidated Malls
Lehigh Valley Mall		18,791		9,372		11,001		17,162		18,741		2,610		10,824		10,527
Springfield Mall		54,187		94		3,019		51,262		54,135		90		2,500		51,725
Total Unconsolidated Malls		72,978		9,466		14,020		68,424		72,876		2,700		13,324		62,252
TOTAL MALLS	$	2,806,507	$	143,965	$	309,338	$	2,641,134	$	2,808,939	$	117,871	$	288,069	$	2,638,741

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Pennsylvania Real Estate Investment Trust

Investment in Real Estate (continued)

(in thousands)

	March 31, 2007								December 31, 2006
	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 Power Centers/Strips
Christiana Power Center	$	40,935	$	—	$	7,941	$	32,994	$	40,935	$	—		$	7,656	$	33,279
Creekview Shopping Center		19,098		—		4,918		14,180		19,098		—			4,689		14,409
Crest Plaza		16,238		41		3,301		12,978		16,238		(9	)		3,139		13,090
The Commons at Magnolia		9,724		—		2,224		7,500		9,724		—			2,131		7,593
Northeast Tower Center		33,598		—		5,191		28,407		33,748		—			5,119		28,629
Paxton Towne Centre		54,056		1		9,832		44,225		54,056		1			9,414		44,643
Total Consolidated Power Centers/Strips		173,649		42		33,407		140,284		173,799		(8	)		32,148		141,643
Unconsolidated Power Centers/Strips
Metroplex Shopping Center		42,024		—		9,499		32,525		42,024		—			9,113		32,911
The Court at Oxford Valley		27,737		—		6,302		21,435		27,735		—			6,151		21,584
Red Rose Commons		11,934		—		2,369		9,565		11,934		—			2,290		9,644
Whitehall Mall		15,665		—		6,803		8,862		15,664		—			6,684		8,980
Springfield Park		7,052		—		967		6,085		7,046		—			937		6,109
Total Unconsolidated Power Centers/Strips		104,412		—		25,940		78,472		104,403		—			25,175		79,228
TOTAL POWER AND STRIP CENTERS	$	278,061	$	42	$	59,347	$	218,756	$	278,202	$	(8	)	$	57,323	$	220,871
Development Properties
Lacey Retail Center	$	—	$	25,527	$	—	$	25,527	$	—	$	21,945		$	—	$	21,945
New Garden Town Center		—		35,605		—		35,605		—		34,793			—		34,793
New River Valley Retail Center		—		8,891		—		8,891		—		5,707			—		5,707
Springhills		—		26,926		—		26,926		—		26,086			—		26,086
Monroe Marketplace		—		6,704		—		6,704		—		6,313			—		6,313
The Plaza at Magnolia		—		9,203		—		9,203		—		6,885			—		6,885
Total Development Properties		—		112,856		—		112,856		—		101,729			—		101,729
Unconsolidated Development Properties
Pavilion at Market East		6,184		881		717		6,348		6,273		970			689		6,554
Total Unconsolidated Development Properties		6,184		881		717		6,348		6,273		970			689		6,554
Other Properties
P&S Building		1,339		—		223		1,116		1,339		—			—		1,339
Land held for development - consolidated		5,616		—		—		5,616		5,616		—			—		5,616
Land held for development - unconsolidated		166		—		—		166		166		—			—		166
Total Other Properties	$	7,121	$	—	$	223	$	6,898	$	7,121	$	—		$	—	$	7,121
TOTAL INVESTMENT IN REAL ESTATE	$	3,097,873	$	257,744	$	369,625	$	2,985,992	$	3,100,535	$	220,562		$	346,081	$	2,975,016
CONSOLIDATED PROPERTIES	$	2,914,133	$	247,397	$	328,948	$	2,832,582	$	2,916,817	$	216,892		$	306,893	$	2,826,816
UNCONSOLIDATED PROPERTIES		183,740		10,347		40,677		153,410		183,718		3,670			39,188		148,200
TOTAL INVESTMENT IN REAL ESTATE	$	3,097,873	$	257,744	$	369,625	$	2,985,992	$	3,100,535	$	220,562		$	346,081	$	2,975,016

Page 24

Pennsylvania Real Estate Investment Trust

Property Redevelopment and Repositioning Summary as of March 31, 2007

NAME OF PROJECT LOCATION	PREIT’s PROJECTED SHARE OF COST	PREIT’S INVESTMENT	RETURN ON INCREMENTAL INVESTMENT	CONSTRUCTION START DATE	EXPECTED CONSTRUCTION COMPLETION
	(in millions)	(in millions)
ENCLOSED MALL
New River Valley Mall Christiansburg, VA	$26.5	$21.5	7.9%	2005	2007
Regal Cinemas relocated and expanded into a free-standing 14 screen theater for an incremental 27,000 square feet (opens May 2007); added a 45,000 square foot Dick’s Sporting Goods in a combination of small shop space and vacant anchor space for a net decrease in GLA of 9,000 square feet and added a 6,000 square foot Red Robin restaurant; addition of 23,000 square foot Community College (opens August 2007) and 3,000 square feet of food court space. The net increase in property GLA is expected to be approximately 50,000 square feet.
Francis Scott Key Mall Frederick, MD	4.9	3.5	8.0%	2006	2007
An in-line 27,000 square foot Barnes & Noble opened at the mall in April 2007, consisting of 5,000 square feet of new GLA and 22,000 square feet of existing mall GLA.
Lycoming Mall Pennsdale, PA	18.1	13.7	10.6%	2006	2007
Added a Best Buy outparcel of 20,000 square feet and a net increase of 23,000 square feet of in-line GLA consisting of a 45,000 square foot Dick’s Sporting Goods, a 22,000 square foot Borders and a 17,000 square foot Old Navy which are occupying new GLA and 61,000 square feet of existing in-line GLA. The redevelopment has increased property GLA by a net amount of 43,000 square feet and also will include a cosmetic renovation that is expected to be completed in 2007.
Magnolia Mall Florence, SC	18.1	10.2	9.6%	2006	2007
A 28,000 square foot Barnes & Noble, consisting of 15,000 square feet of existing GLA and 13,000 square feet of new GLA will be added to the mall as in-line space next to Belk’s. Dick’s Sporting Goods opened a 45,000 square foot store between JC Penney and Sears in April 2007. The net increase in property GLA is 58,000 square feet.
Lehigh Valley Mall Allentown, PA	21.5	4.0	8.6%	2006	2008
A 140,000 square foot Lifestyle addition, including a 30,000 square foot Barnes & Noble, will be added with shops and restaurants. A 10,000 square foot Chi-Chi’s was demolished as part of this project. The net increase in total property GLA is 130,000 square feet.
Beaver��Valley Mall Monaca, PA	9.2	3.6	9.5%	2006	2007
Includes the addition of a 45,000 square foot Dick’s Sporting Goods to the mall, consisting of 28,000 square feet of existing in-line space and 17,000 square feet of new GLA.
Jacksonville Mall Jacksonville, NC	TBD	0.1	TBD	2007	TBD
Phase 1 includes the addition of a 28,000 Barnes & Noble via the absorption of 15,000 square feet of existing inline space and 13,000 incremental square feet. Phase 2 of this project may include the addition of up to 14,000 square feet consisting of two restaurants with outdoor seating and an enhancement of interior common areas.

Page 25

Pennsylvania Real Estate Investment Trust

Property Redevelopment and Repositioning Summary as of March 31, 2007 (continued)

NAME OF PROJECT LOCATION	PREIT’s PROJECTED SHARE OF COST	PREIT’S INVESTMENT	RETURN ON INCREMENTAL INVESTMENT	CONSTRUCTION START DATE	EXPECTED CONSTRUCTION COMPLETION
	(in millions)	(in millions)
ENCLOSED MALL (continued)
North Hanover Mall Hanover, PA	$35.0	$2.7	7.7%	2007	2008
Includes the demolition of the former 70,000 square foot Bon-Ton anchor and the absorption of 12,000 square feet of existing in-line space to create a 172,000 square foot Boscov’s, for an incremental change in square footage of 90,000. This project also consists of the addition of a 50,000 square foot Dick’s Sporting Goods and the relocation of Black Rose Antiques from its current 63,000 square feet to 15,000 of previously vacant space for a decrease in GLA of 13,000. The net increase in total property GLA is approximately 77,000 square feet.
Plymouth Meeting Mall Plymouth Meeting, PA	83.9	23.7	8.6%	2007	2008
A planned 142,000 square foot addition is expected to include a 65,000 square foot Whole Foods Market, 39,000 square feet of retail GLA, four themed restaurants totaling 34,000 square feet and a 4,000 square foot bank outparcel.
Cherry Hill Mall Cherry Hill, NJ	197.7	22.9	7.1%	2007	2009
Includes the demolition of the former 262,000 square foot Strawbridge’s and the addition of a two-level, 138,000 square foot Nordstrom; Crate & Barrel and The Container Store on two outparcels totaling 59,000 square feet; 72,000 square feet from a combination of a Bistro Row and parking deck restaurants; and 88,000 square feet of new in-line retail space in the old food court and Strawbridge’s area. Nordstrom is expected to occupy a portion of the former Strawbridge’s location and is scheduled to open in the spring of 2009. The net increase in total property GLA is 95,000 square feet.
Willow Grove Park Willow Grove, PA	40.0	19.1	6.5%	2007	2008
The former 229,000 square foot Strawbridge’s is expected to be replaced by a 190,000 square foot Boscov’s and a 30,000 square foot Lifestyle addition, which will include restaurants and other retailers.
Moorestown Mall Moorestown, NJ	13.7	1.1	8.2%	2007	2008
A 16,000 square foot Lane Furniture is under construction through the reabsorption of 16,000 square feet of vacant GLA. We will also add a 15,000 square foot Eastern Mountain Sports to the mall through the reabsorption of 11,000 square feet of existing GLA and the addition of 4,000 square feet of GLA . We also expect to add two restaurants, totaling 6,000 square feet of outparcel space and update entrances and facades. The net increase in total property GLA will be approximately 10,000 square feet.
MIXED USE
Voorhees Town Center (Formerly Echelon Mall) Voorhees, NJ	60.7	7.8	9.7%	2007	2008
Includes a reduction in mall GLA by 470,000 square feet to 654,000 square feet and the addition of 131,000 square feet of town center retail space, a 65,000 square foot supermarket and 26,000 square feet of outparcel space for a net reduction in retail GLA of 248,000 square feet. 425 residential units are expected to be constructed by our ground lessee and its affiliates.
Total Redevelopment Activity(1)	$529.3	$133.9	8.0%

⁽¹⁾ Total does not include TBD amounts.

Page 26

Pennsylvania Real Estate Investment Trust

Development Property Summary as of March 31, 2007

NAME OF PROJECT LOCATION	TOTAL PROJECTED PROPERTY GLA (sq ft) (1)	PREIT’s PROJECTED SHARE OF COST	PREIT’s INVESTMENT	EXPECTED STABILIZED NOI CAP	CONSTRUCTION START DATE	EXPECTED DATE OF COMPLETION	% LEASED	% OCCUPIED
		(in millions)	(in millions)
POWER CENTERS
The Plaza at Magnolia Florence, SC	250,000	$17.4	$16.5	N/A	2006	2007	98%	62%
A power center is under construction near the Magnolia Mall with Home Depot and Kohl’s as anchors. The Home Depot, Longhorn Steakhouse, Olive Garden and Chili’s parcels were sold in 2006. PREIT’s share of cost listed above is the gross cost before reimbursements and proceeds from any other sales. The Kohl’s parcel and the remaining undeveloped outparcel may be sold in 2007.
Lacey Retail Center (2) Lacey Township, NJ	276,000	38.8	25.5	6.2%	2006	2008	56%	0%
A retail shopping center will be anchored by an approximately 133,000 square foot Home Depot. The balance of the center is comprised of in-line stores and outparcels.
New River Valley Retail Center Christiansburg, VA	163,000	29.0	8.9	8.0%	2006	2008	91%	0%
The power center adjacent to the existing New River Valley Mall is under construction. Best Buy, Bed Bath & Beyond, Ross, PetSmart, Old Navy, Staples, Olive Garden and Panera Bread are expected to be tenants in the new center.
Monroe Marketplace Selinsgrove, PA	713,000	64.3	6.7	8.5%	2007	2008	0%	0%
A 713,000 square foot power center is expected to be developed. PREIT purchased nine of the proposed 125 acres in July 2006.
MIXED USE
Springhills Gainesville, FL	TBD	TBD	26.9	TBD	TBD	TBD	0%	0%
540 acres of land were acquired in 2006 and PREIT is expected to develop a mixed-use property.
New Garden Town Center New Garden Township, PA	715,000	82.1	35.6	9.4%	2008	2009	0%	0%
The planned development includes retail and mixed use components.
OTHER
Valley View Downs(3) South Beaver Township, PA	300,000	10.0	1.3	(3)	TBD	TBD	N/A	0%
PREIT’s anticipated role would be to manage the development of a harness racetrack and a casino accommodating up to 3,000 slot machines on an approximately 208 acre property.
Pavilion at Market East (4) Philadelphia, PA	TBD	TBD	1.8	TBD	TBD	TBD	N/A	0%
TBD
Total Development Activity(5)	2,417,000	$241.6	$123.2	8.4%

⁽¹⁾ GLA includes tenants that purchased their respective land; therefore, the % leased and occupied will also include these tenants.

⁽²⁾ Home Depot is expected to open in 3Q07 with the balance of the shopping center opening in 2008.

⁽³⁾ Our acquisition of the site and the construction of the racetrack require the issuance to Valley View Downs (an unaffiliated entity) (“Valley View”) of the sole remaining unissued harness racetrack license in Pennsylvania. The construction of the casino requires the issuance of a gaming license to Valley View. Valley View was one of two applicants for the racing license. In November 2005, the Harness Racing Commission issued an order denying award of the racing license to either applicant. In December 2005, Valley View filed a motion for reconsideration with the Commission. In addition, Valley View filed an appeal of the ruling in the Pennsylvania Commonwealth Court. In June 2006, the Commonwealth Court affirmed the denial of the license to Valley View. In June and July 2006, Valley View and the Commission filed appeals with the Supreme Court of Pennsylvania. The matter was heard by the Supreme Court on April 17, 2007. We are unable to predict whether Valley View will be issued the racing license or the gaming license.

⁽⁴⁾ The Partnership’s development plans for the Pavilion at Market East are under review. The Company retains a 40% interest in the partnership.

⁽⁵⁾ Total does not include TBD amounts.

Page 27

Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)

	Three months ended March 31, 2007
	Consolidated		Unconsolidated		Total
Redevelopment projects with incremental GLA and/or anchor replacement	$	21,090	$	6,766	$	27,856
New development projects		11,126		—		11,126
Renovation with no incremental GLA		2,114		—		2,114
Tenant allowances		1,834		8		1,842
Recurring capital expenditures:
CAM expenditures		467		4		471
Non-CAM expenditures		65		99		164
Total recurring capital expenditures		532		103		635
Total	$	36,696	$	6,877	$	43,573

Page 28

Pennsylvania Real Estate Investment Trust

Debt Analysis as of March 31, 2007

(in thousands)

	Outstanding Debt(1)
	Fixed Rate			% of Total Indebtedness		Floating Rate			% of Total Indebtedness		Total			% of Total Indebtedness
Consolidated Mortgage Notes Payable	$	1,533,572		71.3	%	$	—		0.0	%	$	1,533,572		71.3	%
Unconsolidated Mortgage Notes Payable		72,372		3.4	%		117,102		5.4	%		189,474		8.8	%
Corporate Notes Payable		1,148		0.1	%		—		0.0	%		1,148		0.1	%
Credit Facility		—		0.0	%		425,000		19.8	%		425,000		19.8	%
TOTAL OUTSTANDING DEBT	$	1,607,092		74.8	%	$	542,102		25.2	%	$	2,149,194		100.0	%
AVERAGE INTEREST RATE		6.34	%				6.32	%				6.33	%
(1)      Includes debt premium

		Average Debt Balance
		Mortgage Debt (1)			REMIC(2)			Total Mortgages			Credit Facility		Corporate Notes Payable		TOTAL
Beginning Balance	12/31/2006	$	1,355,532		$	433,979		$	1,789,511		$	332,000	$	1,148	$	2,122,659
Credit Facility Borrowings, net			—			—			—			93,000		—		93,000
Debt Amortization(3)			(4,745	)		(4,861	)		(9,606	)		—		—		(9,606	)
The Mall at Prince Georges repayment			(40,398	)		—			(40,398	)		—		—		(40,398	)
Schuylkill Mall repayment			(16,461	)		—			(16,461	)		—		—		(16,461	)
Ending Balance	3/31/2007	$	1,293,928		$	429,118		$	1,723,046		$	425,000	$	1,148	$	2,149,194
Weighted Average Balance		$	1,335,935		$	432,447		$	1,768,382		$	367,600	$	1,148	$	2,135,982

⁽¹⁾ Includes debt premium.

⁽²⁾ The REMIC is a first mortgage loan that has a final maturity date of September 10, 2008 and is secured by a portfolio of 15 properties at an interest rate of 7.43% per annum.

⁽³⁾ Includes the amortization of debt premium and balloon payments.

	Debt Maturities
Year	Scheduled Amortization		Debt Premium Amortization		Mortgage Balance at Maturity		Credit Facility		Corporate Notes Payable		Total Debt
2007	$	18,568	$	9,403	$	117,077	$	—	$	1,148	$	146,196
2008		24,064		9,789		511,693		—		—		545,546
2009		16,072		1,283		62,434		425,000		—		504,789
2010		17,069		1,174		1,412		—		—		19,655
2011		17,491		1,152		44,788		—		—		63,431
2012		14,886		416		306,580		—		—		321,882
2013		9,904		—		110,458		—		—		120,362
Thereafter		19,501		—		407,832		—		—		427,333
	$	137,555	$	23,217	$	1,562,274	$	425,000	$	1,148	$	2,149,194

⁽¹⁾ The weighted average period to mortgage maturity is 4.63 years. Excludes debt premium.

Interest Rate Hedging Instruments
Type	Notional Amount		Blended Rate		Latest Settlement Date
10 Year Forward Starting Swaps	$	250,000	4.80	%	12/10/2008
10 Year Forward Starting Swaps	$	150,000	5.36	%	12/10/2008

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Pennsylvania Real Estate Investment Trust

Debt Schedule as of March 31, 2007

(in thousands)

	Proportionate Share(1)						Stated Interest Rate		Marked to Market Interest Rate (GAAP)		Annual Debt Service		Balance at Maturity		Maturity Date
	Mortgage Debt		Debt Premium		Total
Fixed Rate Mortgage Debt
Beaver Valley Mall	$	45,698	$	—	$	45,698	7.36	%	7.36	%	$	3,972	$	42,266	2012
Capital City Mall		51,474		4,134		55,608	7.61	%	5.50	%		4,603		47,843	2012
Chambersburg Mall(2)		17,860		597		18,457	7.43	%	4.99	%		1,763		17,200	2008
Cherry Hill Mall		196,084		—		196,084	5.42	%	5.42	%		13,510		177,689	2012
Crossroads Mall		12,934		242		13,176	7.39	%	5.75	%		1,191		12,647	2008
Cumberland Mall - 1st Mortgage		42,713		1,958		44,671	6.50	%	5.40	%		3,413		38,782	2012
Cumberland Mall - 2nd Mortgage		3,395		—		3,395	5.00	%	5.00	%		206		—	2017
Dartmouth Mall		66,010		—		66,010	4.95	%	4.95	%		4,484		57,594	2013
Exton Square Mall		95,481		2,703		98,184	6.95	%	5.00	%		8,102		93,034	2008
Francis Scott Key Mall(2)		31,254		1,045		32,299	7.43	%	4.99	%		3,085		30,099	2008
Jacksonville Mall(2)		24,110		806		24,916	7.43	%	4.99	%		2,380		23,219	2008
Logan Valley Mall(2)		50,900		1,702		52,602	7.43	%	4.99	%		5,024		49,018	2008
Lycoming Mall(2)		31,254		1,045		32,299	7.43	%	4.99	%		3,084		30,099	2008
Magnolia Mall		64,526		—		64,526	5.33	%	5.33	%		4,413		54,965	2015
Metroplex Shopping Center		30,966		—		30,966	7.25	%	7.25	%		2,681		28,785	2011
Moorestown Mall		60,587		—		60,587	4.95	%	4.95	%		4,115		52,863	2013
New River Valley Mall(2)		15,181		507		15,688	7.43	%	4.99	%		1,498		14,619	2008
Nittany Mall(2)		26,789		896		27,685	7.43	%	4.99	%		2,644		25,799	2008
North Hanover Mall(2)		17,860		597		18,457	7.43	%	4.99	%		1,763		17,199	2008
Northeast Tower Center(2)		15,627		522		16,149	7.43	%	4.99	%		1,542		15,049	2008
The Court at Oxford Valley		19,724		—		19,724	8.02	%	8.02	%		2,319		16,003	2011
Palmer Park Mall		16,618		—		16,618	6.77	%	6.77	%		1,661		15,674	2009
Patrick Henry Mall(2)		45,096		1,508		46,604	7.43	%	4.99	%		4,451		43,428	2008
Pavilion East Associates		517		—		517	6.00	%	6.00	%		62		—	2018
Phillipsburg Mall(2)		26,789		896		27,685	7.43	%	4.99	%		2,644		25,799	2008
Red Rose Commons		13,046		—		13,046	7.66	%	7.66	%		1,220		12,425	2009
Springfield Park		1,634		—		1,634	7.79	%	7.79	%		203		1,412	2010
South Mall(2)		13,395		448		13,843	7.43	%	4.99	%		1,322		12,899	2008
Uniontown Mall(2)		21,432		716		22,148	7.43	%	4.99	%		2,115		20,639	2008
Valley Mall		90,000		—		90,000	5.49	%	5.49	%		5,014		78,835	2016
Valley View Mall		35,739		297		36,036	6.15	%	5.75	%		2,773		34,335	2009
Viewmont Mall(2)		26,789		896		27,685	7.43	%	4.99	%		2,644		25,799	2008
Whitehall Mall		6,485		—		6,485	6.77	%	6.77	%		641		6,129	2008
Willow Grove Park		157,360		—		157,360	5.65	%	5.65	%		11,083		133,548	2015
Woodland Mall		156,500		—		156,500	5.58	%	5.58	%		8,397		140,484	2016
Wyoming Valley Mall(2)		50,900		1,702		52,602	7.43	%	4.99	%		5,024		49,018	2008
Total Fixed Rate Mortgage Debt		1,582,727		23,217		1,605,944	6.34	%	5.46	%		125,046		1,445,196
Variable Rate Mortgage Debt
Lehigh Valley Mall		75,000		—		75,000	5.88	%	5.88	%		—		75,000	2007
Pavilion East Associates		3,852		—		3,852	8.50	%	8.50	%		430		3,828	2007
Springfield Mall		38,250		—		38,250	6.42	%	6.42	%		2,456		38,250	2007
Total Variable Rate Mortgage Debt		117,102		—		117,102	6.14	%	6.14	%		2,886		117,078
Total Mortgage Debt	$	1,699,829	$	23,217	$	1,723,046	6.32	%	5.51	%	$	127,932	$	1,562,274
CONSOLIDATED MORTGAGES	$	1,510,355	$	23,217	$	1,533,572	6.28	%	5.36	%	$	117,920	$	1,380,442
UNCONSOLIDATED MORTGAGES		189,474		—		189,474	6.66	%	6.66	%		10,012		181,832
CORPORATE NOTES		1,148		—		1,148	0.00	%	0.00	%		—		—
CREDIT FACILITY		425,000		—		425,000	6.37	%	6.37	%		27,073		—
Total	$	2,125,977	$	23,217	$	2,149,194	6.33	%	5.68	%	$	155,005	$	1,562,274

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

⁽²⁾ Mortgage Debt represents the properties’ allocated portion of the REMIC.

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Pennsylvania Real Estate Investment Trust

Shareholder Information

Ten Largest Institutional Shareholders:	Common Shares Held (1)
Barclays Global Investors, NA	3,637,758
ING Clarion Real Estate Securities	2,609,053
Vanguard Group, Inc.	2,095,970
J.P. Morgan Investment Management Inc. (New York)	1,756,926
Nomura Asset Management Co., Ltd.	1,292,200
State Street Global Advisors (U.S.)	961,138
RREEF Real Estate Securities Advisors, L.P.	813,738
Neuberger Berman, LLC	652,799
Cliffwood Partners, LLC	645,100
Pyramis Global Advisors, LLC	572,000
TOTAL of Ten Largest Institutional:	15,036,682
TOTAL of all Institutional Holders:	27,414,896
Ten Largest as % of Total Institutional:	54.8	%

⁽¹⁾ Based on 13F and 13G filings as of 12/31/06 or most recent filings.

Breakdown of Share & Unit Ownership: Shares Held	Most Recent	% of Outstanding		December 31, 2006
Institutional(1)	27,414,896	66.2	%	27,237,603
Retail(2)	9,021,038	21.8	%	9,195,771
Insiders(3)	4,965,503	12.0	%	4,811,556
TOTAL	41,401,437	100.0	%	41,244,930

⁽¹⁾ Based on 13F and 13G filings as of 12/31/06 or most recent filings.

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

⁽³⁾ Insider holdings as of March 31, 2007 (Shares and O.P. Units only). Excludes 330,000 exercisable options. See proxy statement dated April 20, 2007 for more details.

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Pennsylvania Real Estate Investment Trust

Definitions

Funds From Operations (FFO)

The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations, which is a non-GAAP measure, as income before gains (losses) on sales of operating property 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 Funds From Operations by taking the amount determined pursuant to the NAREIT definition and subtracting dividends on preferred shares (“FFO”). FFO is a commonly used measure of operating performance and profitability in the REIT industry, and we use FFO as a supplemental non-GAAP measure to compare our company’s performance to that of our industry peers. In addition, we use FFO as a performance measure for determining bonus amounts earned under certain of our performance-based executive compensation programs. The Company computes FFO in accordance with standards established by NAREIT, less dividends on preferred shares, 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 the Company.

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

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

Net Operating Income (NOI)

Net operating income (“NOI”), which is a non-GAAP measure, is derived from revenues (determined in accordance with GAAP) minus property operating expenses (determined in accordance with GAAP). Net operating income is a non-GAAP measure. It does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity; nor is it indicative of funds available for the Company’s cash needs, including its ability to make cash distributions. The Company believes that net income is the most directly comparable GAAP measurement to net operating income.

The Company believes that net operating income is helpful to management and investors as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. Net operating income excludes general and administrative expenses, management company revenues, interest income, interest expense, depreciation and amortization, income from discontinued operations and gains on sales of interests in real estate.

Funds Available for Distribution (FAD)

FAD, which some companies refer to as Cash Available for Distributions (CAD) or Adjusted FFO (AFFO), is a measure of a real estate company’s cash flows generated by operations and capacity to pay dividends. The Company calculates FAD by starting with FFO and subtracting (1) straight-line rents, (2) normalized recurring capital expenditures that are capitalized but necessary to maintain our properties, (3) operational tenant allowances, (4) capitalized leasing costs, (5) amortization of debt premium, and (6) amortization of above and below market lease intangibles.

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

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