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, 2008

www.preit.com

NYSE common shares (PEI)

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

March 31, 2008

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, 2008 and 2007	4
Net Operating Income - Three Months Ended March 31, 2008 and 2007	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	24
Capital Expenditures	25
Debt Analysis	26
Debt Schedule	27
Shareholder Information	28
Definitions	29

FORWARD-LOOKING STATEMENTS

This Quarterly Supplemental Financial and Operating Information contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect PREIT’s current views about future events and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. More specifically, PREIT’s business might be affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: general economic, financial and political conditions, including credit market conditions, changes in interest rates or the possibility of war or terrorist attacks; 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, 2007. 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, 2008, the Company’s retail portfolio, which was approximately 34.1 million square feet, consisted of 55 properties including 38 shopping malls, 13 power and strip centers, and four 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.

If you would like to participate in our quarterly conference call or would like additional information about PREIT, please contact:

Nurit Yaron, Vice President - Investor Relations

200 South Broad Street

Philadelphia, PA 19102

Telephone: (215) 875-0735

Fax: (215) 546-2504

Email: yaronn@preit.com

Reporting Calendar

Results for 2008 will be announced as follows (tentative dates):

Second Quarter 2008	July 29, 2008
Third Quarter 2008	October 28, 2008
Fourth Quarter 2008	February 24, 2009

Research Coverage

Company	Analyst	Phone Number
Citi Investment Research	Michael Bilerman	(212) 816-1383
	Ambika Goel	(212) 816-6981
Green Street Advisors	Jim Sullivan	(949) 640-8780
	Ben Yang	(949) 640-8780
JP Morgan	Michael W. Mueller	(212) 622-6689
	Sarah E. King	(212) 622-5670
Lehman Brothers	David Harris	(212) 526-1790
Merrill Lynch	Craig Schmidt	(212) 449-1944
	Steve Sakwa	(212) 449-0335
	David Wiggington	(212) 449-2729
Stifel Nicolaus	Nathan Isbee	(443) 224-1346
	David M. Fick	(443) 224-1308
UBS Securities	Jeffrey Spector	(212) 713-6144

Page 1

Pennsylvania Real Estate Investment Trust

Press Release Announcements

Dividends and Distributions:

April 9, 2008 PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.57 per common share.

February 22, 2008 PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.57 per common share.

January 14, 2008 PREIT announced the tax status of the distributions paid per share during 2007.

Financing activities:

January 29, 2008 PREIT announced it completed $55 million in supplemental financing on Cherry Hill Mall.

Other activities:

April 8, 2008 PREIT presented at the 2008 Credit Suisse Global Real Estate Conference in New York on April 9, 2008.

April 8, 2008 PREIT scheduled its First Quarter 2008 earnings call for Tuesday, May 6, 2008.

February 29, 2008 PREIT presented at the 2008 Citigroup REIT CEO conference in Palm Beach, Florida, on March 3, 2008.

February 26, 2008 PREIT reported its Fourth Quarter and Year End 2007 financial results.

January 29, 2008 PREIT scheduled its Fourth Quarter and Year End 2007 earnings call for Tuesday, February 26, 2008.

Page 2

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

	Quarter Ended March 31,						Year Ended December 31,
	2008			2007			2007			2006			2005
TRADING INFORMATION
High Price	$	29.70		$	45.66		$	50.39		$	44.53		$	50.20
Low Price	$	22.00		$	38.52		$	28.48		$	36.75		$	35.24
Average Daily Trading Volume		583,334			361,403			402,381			223,686			209,537
MARKET CAPITALIZATION (in thousands, except per share amounts)
EQUITY CAPITALIZATION
Common Shares Outstanding		39,326			37,107			38,953			36,947			36,521
O.P. Units Outstanding		2,238			4,294			2,395			4,297			4,156
TOTAL Shares and O.P. Units		41,564			41,401			41,348			41,244			40,677
Market Price (closing price at end of period)	$	24.39		$	44.33		$	29.68		$	39.38		$	37.36
Equity Market Capitalization - Shares and O.P. Units	$	1,013,765		$	1,835,326		$	1,227,216	��	$	1,606,325		$	1,519,679
Preferred Shares, Nominal Value		—			123,750			—			123,750			123,750
Total Equity Market Capitalization		1,013,765			1,959,076			1,227,216			1,730,075			1,643,429
DEBT CAPITALIZATION
Unsecured Debt Balance(1) (2)		617,500			426,148			617,500			333,148			436,900
Secured Debt Balance		1,887,851			1,723,080			1,831,211			1,789,511			1,523,745
Debt Capitalization		2,505,351			2,149,228			2,448,711			2,122,659			1,960,645
TOTAL MARKET CAPITALIZATION	$	3,519,116		$	4,108,304		$	3,675,927		$	3,852,734		$	3,604,074
Shares and O.P. Units/Total Market Capitalization		28.8	%		44.7	%		33.4	%		41.7	%		42.2	%
Preferred Shares/Total Market Capitalization		0.0	%		3.0	%		0.0	%		3.2	%		3.4	%
Equity Capitalization/Total Market Capitalization		28.8	%		47.7	%		33.4	%		44.9	%		45.6	%
Debt Capitalization/Total Market Capitalization		71.2	%		52.3	%		66.6	%		55.1	%		54.4	%
Unsecured Debt Balance/Total Debt		24.6	%		19.8	%		25.2	%		15.7	%		22.3	%
DISTRIBUTIONS PER COMMON SHARE
Ordinary Income		(3)		$	0.526		$	2.105		$	1.935		$	2.075
Section 1250 Gain		(3)			—			—			0.037			—
Return of Capital/Non-Taxable		(3)			0.044			0.175			0.308			0.175
Distributions per share	$	0.570		$	0.570		$	2.280		$	2.280		$	2.250
Annualized Dividend Yield(4)		9.3	%		5.1	%		7.7	%		5.8	%		6.0	%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	24,476		$	27,925		$	33,227		$	18,727		$	25,828
Credit Facility		500,000			500,000			500,000			500,000			500,000
Amount Outstanding		(330,000	)		(425,000	)		(330,000	)		(332,000	)		(342,500	)
Letters of Credit		(19,706	)		(8,739	)		(16,686	)		(24,803	)		(10,485	)
Available Line of Credit(5)		150,294			66,261			153,314			143,197			147,015
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	$	830,624		$	750,040		$	842,395		$	817,778		$	828,697

⁽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⁾ The unsecured debt balance includes $287,500 in exchangeable senior notes as of March 31, 2008 and December 31, 2007.

⁽³⁾ Tax status of 2008 dividend payments will be available in January 2009.

⁽⁴⁾ Based on closing share price at the end of the period.

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

Page 3

Pennsylvania Real Estate Investment Trust

Income Statement - Three Months Ended March 31, 2008 and 2007

Proportionate Consolidation Method

(in thousands)

	Three months ended March 31, 2008											Three months ended March 31, 2007
	GAAP			Share of unconsolidated partnerships (1)			Discontinued operations		Total			GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total
Real estate revenue:
Base rent	$	73,816		$	6,240		$	—	$	80,056		$	70,899		$	5,944		$	543		$	77,386
Expense reimbursements		34,428			2,256			—		36,684			34,774			2,154			420			37,348
Percentage rent		1,488			4			—		1,492			2,091			28			—			2,119
Lease termination revenue		885			—			—		885			475			2			—			477
Other real estate revenue		3,591			166			—		3,757			3,657			194			83			3,934
TOTAL REAL ESTATE REVENUE		114,208			8,666			—		122,874			111,896			8,322			1,046			121,264
Property operating expenses:
CAM and real estate taxes		(32,871	)		(1,715	)		—		(34,586	)		(32,504	)		(1,788	)		(481	)		(34,773	)
Utilities		(5,977	)		(220	)		—		(6,197	)		(6,258	)		(208	)		(259	)		(6,725	)
Other property operating expenses		(5,579	)		(671	)		—		(6,250	)		(5,616	)		(597	)		(76	)		(6,289	)
TOTAL PROPERTY OPERATING EXPENSES		(44,427	)		(2,606	)		—		(47,033	)		(44,378	)		(2,593	)		(816	)		(47,787	)
NET OPERATING INCOME		69,781			6,060			—		75,841			67,518			5,729			230			73,477
Management company revenue		895			—			—		895			440			—			—			440
Interest and other income		247			—			—		247			1,304			—			—			1,304
Other expenses:
General and administrative expenses		(10,507	)		—			—		(10,507	)		(10,486	)		—			—			(10,486	)
Abandoned project costs, income taxes and other expenses		(1,269	)		—			—		(1,269	)		(571	)		—			—			(571	)
Total other expenses		(11,776	)		—			—		(11,776	)		(11,057	)		—			—			(11,057	)
Interest expense(2)		(26,991	)		(2,672	)		—		(29,663	)		(23,811	)		(3,072	)		(136	)		(27,019	)
Depreciation and amortization		(35,815	)		(1,926	)		—		(37,741	)		(31,774	)		(1,702	)		(216	)		(33,692	)
Subtotal		(3,659	)		1,462			—		(2,197	)		2,620			955			(122	)		3,453
Equity in income of partnerships		1,462			(1,462	)		—		—			955			(955	)		—			—
Minority interest		69			—			—		69			(376	)		—			—			(376	)
TOTAL CONTINUING OPERATIONS		(2,128	)		—			—		(2,128	)		3,199			—			(122	)		3,077
Discontinued Operations:
Operating results from discontinued operations		—			—			—		—			(122	)		—			122			—
Gain on sale of discontinued operations		—			—			—		—			6,699			—			—			6,699
Minority interest		—			—			—		—			(691	)		—			—			(691	)
TOTAL DISCONTINUED OPERATIONS		—			—			—		—			5,886			—			122			6,008
NET (LOSS) INCOME		(2,128	)		—			—		(2,128	)		9,085			—			—			9,085
Dividends on preferred shares		—			—			—		—			(3,403	)		—			—			(3,403	)
NET (LOSS ALLOCABLE) INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	(2,128	)	$	—		$	—	$	(2,128	)	$	5,682		$	—		$	—		$	5,682

⁽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⁾ Capitalized interest expense of $3,856 and $3,545 is not included for the three months ended March 31, 2008 and March 31, 2007, respectively.

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Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Three Months Ended March 31, 2008 and 2007

(in thousands)

	Three months ended March 31, 2008												Three months ended March 31, 2007
SAME STORE RETAIL/NEW/OTHER	Same			New			Other			Total			Same			New		Other			Total
Real estate revenue:
Base rent	$	78,874		$	870		$	312		$	80,056		$	76,790		$	—	$	596		$	77,386
Expense reimbursements		36,600			76			8			36,684			36,928			—		420			37,348
Percentage rent		1,492			—			—			1,492			2,119			—		—			2,119
Lease termination revenue		885			—			—			885			477			—		—			477
Other real estate revenue		3,757			—			—			3,757			3,851			—		83			3,934
TOTAL REAL ESTATE REVENUE		121,608			946			320			122,874			120,165			—		1,099			121,264
Property operating expenses:
CAM and real estate taxes		(34,348	)		(76	)		(162	)		(34,586	)		(34,282	)		—		(491	)		(34,773	)
Utilities		(6,186	)		(11	)		—			(6,197	)		(6,466	)		—		(259	)		(6,725	)
Other property operating expenses		(6,179	)		(38	)		(33	)		(6,250	)		(6,212	)		—		(77	)		(6,289	)
TOTAL PROPERTY OPERATING EXPENSES		(46,713	)		(125	)		(195	)		(47,033	)		(46,960	)		—		(827	)		(47,787	)
NET OPERATING INCOME	$	74,895		$	821		$	125		$	75,841		$	73,205		$	—	$	272		$	73,477

	Three months ended March 31, 2008									Three months ended March 31, 2007
SAME STORE COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	71,383		$	7,491		$	78,874		$	69,361		$	7,432		$	76,793
Expense reimbursements		34,987			1,613			36,600			35,071			1,857			36,928
Percentage rent		1,471			21			1,492			2,087			32			2,119
Lease termination revenue		885			—			885			475			2			477
Other real estate revenue		3,709			48			3,757			3,789			61			3,850
TOTAL REAL ESTATE REVENUE		112,435			9,173			121,608			110,783			9,384			120,167
Property operating expenses:
CAM and real estate taxes		(32,767	)		(1,581	)		(34,348	)		(32,432	)		(1,852	)		(34,284	)
Utilities		(6,127	)		(59	)		(6,186	)		(6,426	)		(40	)		(6,466	)
Other property operating expenses		(5,891	)		(288	)		(6,179	)		(6,021	)		(191	)		(6,212	)
TOTAL PROPERTY OPERATING EXPENSES		(44,785	)		(1,928	)		(46,713	)		(44,879	)		(2,083	)		(46,962	)
NET OPERATING INCOME	$	67,650		$	7,245		$	74,895		$	65,904		$	7,301		$	73,205
EXPENSE RECOVERY RATIO(2)		90.0	%		98.4	%		90.3	%		90.3	%		98.2	%		90.6	%

⁽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⁾ Expense recovery ratio is calculated by taking Expense Reimbursements divided by the sum of recoverable expenses (CAM and real estate taxes plus Utilities).

Page 5

Pennsylvania Real Estate Investment Trust

Computation of

Earnings Per Share

(in thousands, except per share amounts)

	Three months ended March 31,
	2008			2007
Net (loss) income from continuing operations	$	(2,128	)	$	3,077
Dividends on preferred shares		—			(3,403	)
Net loss from continuing operations allocable to common shareholders		(2,128	)		(326	)
Dividends on unvested restricted shares		(309	)		(272	)
Loss from continuing operations used to calculate earnings per share - basic		(2,437	)		(598	)
Minority interest in properties-continuing operations		—			—
Loss from continuing operations used to calculate earnings per share - diluted	$	(2,437	)	$	(598	)
Income from discontinued operations	$	—		$	5,886
Basic (loss) earnings per share:
Loss from continuing operations	$	(0.06	)	$	(0.01	)
Income from discontinued operations		—			0.16
(Loss) income per share - basic	$	(0.06	)	$	0.15
Diluted (loss) earnings per share:
Loss from continuing operations	$	(0.06	)	$	(0.01	)
Income from discontinued operations		—			0.16
(Loss) income per share - diluted	$	(0.06	)	$	0.15
Weighted average of common shares outstanding		39,214			37,009
Weighted average of unvested restricted shares		(500	)		(446	)
Weighted average shares outstanding - basic		38,714			36,563
Weighted average effect of common share equivalents (1)		—			—
Total weighted average shares outstanding - diluted		38,714			36,563

⁽¹⁾ For the three month periods ended March 31, 2008 and March 31, 2007, there are net losses allocable to common shareholders from continuing operations, so the effect of common share equivalents is excluded from the calculation of diluted (loss) income per share for these periods.

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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,
	2008			2007			2007
FUNDS FROM OPERATIONS (FFO)
Net (loss) income	$	(2,128	)	$	9,085		$	23,161
Redemption of preferred shares		—			—			13,347
Dividends on preferred shares		—			(3,403	)		(7,941	)
Minority interest		(69	)		1,067			2,105
Gain on sale of interests in real estate		—			—			(579	)
Gain on sale of interests in discontinued operations		—			(6,699	)		(6,699	)
Depreciation and amortization: (1)
Wholly owned and consolidated partnerships		35,176			31,214			129,924
Unconsolidated partnerships		1,926			1,702			7,130
Discontinued operations		—			216			215
FFO	$	34,905		$	33,182		$	160,663
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	34,905		$	33,182		$	160,663
Adjustments:
Straight line rent		(665	)		(566	)		(2,484	)
Recurring capital expenditures		(685	)		(635	)		(17,579	)
Tenant allowances		(1,759	)		(1,842	)		(14,294	)
Capitalized leasing costs		(1,286	)		(1,304	)		(4,830	)
Amortization of debt premium		(3,099	)		(3,447	)		(12,843	)
Amortization of above- and below- market lease intangibles		(6	)		5			(171	)
Redemption of preferred shares		—			—			(13,347	)
FAD	$	27,405		$	25,393		$	95,115
Weighted average of common shares outstanding		38,714			36,563			37,577
Weighted average of O.P. Units outstanding		2,240			4,294			3,308
Weighted average effect of common share equivalents		7			356			325
Total weighted average shares outstanding, including O.P. Units		40,961			41,213			41,210
Net (loss) income per diluted share	$	(0.06	)	$	0.15		$	0.73
FFO per diluted share	$	0.85		$	0.81		$	3.90
FAD per diluted share	$	0.67		$	0.62		$	2.31
Dividend per Common Share	$	0.57		$	0.57		$	2.28
PAYOUT RATIOS
Payout Ratio of FFO		57.8	% (2)
Payout Ratio of FAD		96.6	% (2)

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

⁽²⁾ Twelve months ended March 31, 2008

Page 7

Pennsylvania Real Estate Investment Trust

2008 Leasing Activity Summary

			Average Base Rent psf				Change in Base Rent psf
	Number	GLA	Previous		New		Dollar		Percentage		Annualized Tenant Improvements psf (1)
New Leases - Previously Leased Space:
1st Quarter	21	86,749	$	27.00	$	30.36	$	3.36	12.5	%	$	3.15
Total/Average	21	86,749	$	27.00	$	30.36	$	3.36	12.5	%	$	3.15
New Leases - Previously Vacant Space:(2)
1st Quarter	43	151,731	$	—	$	25.86	$	25.86	N/A		$	2.94
Total/Average	43	151,731	$	—	$	25.86	$	25.86	N/A		$	2.94
Renewal:(3)
1st Quarter	112	343,485	$	20.86	$	23.27	$	2.41	11.6	%	$	0.20
Total/Average	112	343,485	$	20.86	$	23.27	$	2.41	11.6	%	$	0.20
Anchor Renewal:
1st Quarter	2	205,869	$	0.64	$	0.64	$	—	0.0	%	$	—
Total/Average	2	205,869	$	0.64	$	0.64	$	—	0.0	%	$	—
Anchor Other:(4)
1st Quarter	7	518,887	$	1.87	$	6.31		N/A	N/A		$	1.46
Total/Average	7	518,887	$	1.87	$	6.31		N/A	N/A		$	1.46

⁽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 newly constructed and recommissioned space.

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

⁽⁴⁾ This category includes previously leased and newly constructed space.

Page 8

Pennsylvania Real Estate Investment Trust

Summarized Rent Per Square Foot and Occupancy Percentages

	March 31, 2008						March 31, 2007						Change
			Occupancy						Occupancy						Occupancy
	Avg Base Rent		Total (1)		Non-Anchor		Avg Base Rent		Total (1)		Non-Anchor		Avg Base Rent		Total		Non-Anchor
Enclosed Malls weighted average(2)	$	30.49	88.0	%	87.0	%	$	30.08	88.2	%	86.0	%	1.4	%	-0.2	%	1.0	%
Strip and Power Centers weighted average	$	16.06	97.0	%	95.2	%	$	16.02	97.1	%	95.4	%	0.2	%	-0.1	%	-0.2	%
Retail Portfolio weighted average	$	27.02	89.3	%	88.3	%	$	26.89	89.3	%	87.5	%	0.5	%	0.0	%	0.8	%
Consolidated Properties	$	28.12	88.6	%	87.6	%	$	28.08	88.5	%	86.4	%	0.2	%	0.1	%	1.2	%
Unconsolidated Properties	$	22.35	94.9	%	92.8	%	$	21.92	95.9	%	94.1	%	1.9	%	-1.0	%	-1.3	%
Same Properties	$	27.26	89.1	%	88.2	%	$	26.89	89.3	%	87.5	%	1.4	%	-0.2	%	0.7	%
New	$	14.61	99.2	%	98.5	%		N/A	N/A		N/A		N/A		N/A		N/A

⁽¹⁾ Includes approximately 1.2 million square feet, of which 554,000 square feet has been leased but is not occupied. The remaining 613,000 square feet includes the 556,000 square foot vacant anchor at The Gallery at Market East in Philadelphia, PA.

⁽²⁾ Average base rent for tenants that lease individual spaces of 10,000 square feet or less and pay fixed rent. Average base rent for tenants greater than 10,000 square feet that pay fixed rent was $12.97/sq ft as of March 31, 2008 and $13.37/sq ft as of March 31, 2007.

Page 9

Pennsylvania Real Estate Investment Trust

Mall Sales and Rents Per Square Foot

			March 31, 2008						March 31, 2007						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	%
Woodland Mall			$	41.73	$	479	14.8	%	$	42.33	$	378	18.7	%	-1.4	%	26.6	%	-3.9	%
Lehigh Valley Mall				38.80		477	12.3	%		38.87		446	12.7	%	-0.2	%	7.0	%	-0.4	%
Patrick Henry Mall				36.81		468	10.8	%		35.82		478	10.2	%	2.8	%	-2.0	%	0.6	%
Cherry Hill Mall				41.69		463	14.5	%		41.10		483	13.4	%	1.4	%	-4.3	%	1.1	%
Jacksonville Mall				29.93		460	9.8	%		30.09		458	9.6	%	-0.5	%	0.3	%	0.2	%
Willow Grove Park				41.75		434	14.0	%		40.82		447	13.8	%	2.3	%	-3.0	%	0.2	%
Moorestown Mall				35.04		421	14.3	%		37.07		429	13.5	%	-5.5	%	-1.9	%	0.8	%
The Mall at Prince Georges				32.40		416	12.3	%		31.64		456	11.8	%	2.4	%	-8.7	%	0.5	%
Sales per square foot between $350 - $400	22.7	%
The Gallery at Market East				35.48		391	13.1	%		35.41		422	12.0	%	0.2	%	-7.4	%	1.1	%
Dartmouth Mall				29.20		388	11.9	%		28.10		420	11.1	%	3.9	%	-7.8	%	0.8	%
Springfield Mall				31.67		384	13.2	%		31.89		394	12.8	%	-0.7	%	-2.7	%	0.4	%
Capital City Mall				31.94		380	10.8	%		32.13		363	11.0	%	-0.6	%	4.6	%	-0.2	%
Viewmont Mall				30.12		379	11.8	%		30.56		385	11.3	%	-1.5	%	-1.7	%	0.5	%
Exton Square Mall				36.61		378	14.5	%		36.02		399	14.2	%	1.7	%	-5.3	%	0.3	%
Valley View Mall				29.32		370	12.2	%		29.05		364	11.5	%	0.9	%	1.7	%	0.7	%
Francis Scott Key Mall				25.76		361	10.1	%		25.73		356	9.8	%	0.1	%	1.2	%	0.3	%
Sales per square foot between $300 - $349	14.7	%
Valley Mall				24.21		344	11.1	%		24.84		369	10.0	%	-2.5	%	-6.8	%	1.1	%
Wyoming Valley Mall				29.74		340	12.1	%		29.07		352	11.6	%	2.3	%	-3.3	%	0.5	%
Cumberland Mall				26.77		311	12.5	%		25.93		332	11.7	%	3.3	%	-6.3	%	0.8	%
South Mall				24.41		310	11.0	%		22.66		305	10.4	%	7.7	%	1.5	%	0.6	%
Palmer Park Mall				24.37		307	10.8	%		23.16		328	11.2	%	5.2	%	-6.4	%	-0.4	%
Logan Valley Mall				25.58		302	11.9	%		24.53		304	11.5	%	4.3	%	-0.8	%	0.4	%
Sales per square foot under $300	25.6	%
Magnolia Mall				25.17		291	13.3	%		24.77		314	12.3	%	1.6	%	-7.1	%	1.0	%
Nittany Mall				22.48		283	11.0	%		21.48		281	10.5	%	4.7	%	0.9	%	0.5	%
Orlando Fashion Square				34.11		282	16.1	%		34.11		327	13.7	%	0.0	%	-13.7	%	2.4	%
Wiregrass Commons Mall				23.71		282	11.2	%		24.96		308	10.2	%	-5.0	%	-8.3	%	1.0	%
North Hanover Mall				24.17		279	12.6	%		23.15		306	10.0	%	4.4	%	-8.8	%	2.6	%
Crossroads Mall				20.86		278	9.6	%		20.14		282	9.4	%	3.6	%	-1.5	%	0.2	%
Gadsden Mall				23.99		278	10.6	%		23.22		281	10.3	%	3.3	%	-1.3	%	0.3	%
New River Valley Mall				24.70		277	9.8	%		22.76		303	10.3	%	8.5	%	-8.5	%	-0.5	%
Uniontown Mall				21.61		277	10.6	%		21.40		281	10.4	%	1.0	%	-1.6	%	0.2	%
Washington Crown Center				20.87		275	11.4	%		21.91		299	11.9	%	-4.7	%	-7.9	%	-0.5	%
Plymouth Meeting Mall				30.03		265	13.9	%		29.24		281	13.3	%	2.7	%	-5.7	%	0.6	%
Phillipsburg Mall				24.92		263	13.6	%		25.41		282	12.5	%	-1.9	%	-6.7	%	1.1	%
Beaver Valley Mall				23.61		257	13.9	%		23.57		268	13.8	%	0.1	%	-4.0	%	0.1	%
Lycoming Mall				20.64		256	11.5	%		20.32		259	11.4	%	1.6	%	-0.9	%	0.1	%
Chambersburg Mall				20.94		226	12.4	%		20.21		245	10.8	%	3.6	%	-8.0	%	1.6	%
Voorhees Town Center				29.35		193	15.1	%		29.62		213	15.8	%	-0.9	%	-9.5	%	-0.7	%
Enclosed Malls weighted average			$	30.49	$	356	12.5	%	$	30.08	$	361	12.2	%	1.4	%	-1.6	%	0.3	%
Consolidated Properties			$	30.01	$	347	12.5	%	$	29.60	$	356	12.1	%	1.4	%	-2.4	%	0.4	%
Unconsolidated Properties			$	36.19	$	445	12.6	%	$	36.19	$	426	12.7	%	0.0	%	4.4	%	-0.1	%
Same Properties			$	30.49	$	356	12.5	%	$	30.08	$	361	12.2	%	1.4	%	-1.6	%	0.3	%

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

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

Page 10

Pennsylvania Real Estate Investment Trust

Mall Occupancy - Owned GLA

	March 31, 2008				March 31, 2007				Change
	Total		Non-Anchor		Total		Non-Anchor		Total		Non-Anchor
Beaver Valley Mall	93.0	%	85.0	%	90.4	%	78.1	%	2.6	%	6.9	%
Capital City Mall	99.7	%	99.5	%	95.2	%	91.8	%	4.5	%	7.7	%
Chambersburg Mall(1)	72.6	%	74.3	%	88.9	%	76.4	%	-16.3	%	-2.1	%
Cherry Hill Mall(2)	95.3	%	95.3	%	62.2	%	93.5	%	33.1	%	1.8	%
Crossroads Mall	92.5	%	82.7	%	93.0	%	83.8	%	-0.5	%	-1.1	%
Cumberland Mall(1)	82.6	%	95.7	%	97.0	%	94.9	%	-14.4	%	0.8	%
Dartmouth Mall	96.0	%	93.4	%	96.3	%	93.9	%	-0.3	%	-0.5	%
Exton Square Mall	92.7	%	84.0	%	92.7	%	84.0	%	0.0	%	0.0	%
Francis Scott Key Mall(3)	82.6	%	89.3	%	95.6	%	90.5	%	-13.0	%	-1.2	%
Gadsden Mall(4)	89.0	%	77.4	%	92.1	%	81.4	%	-3.1	%	-4.0	%
The Gallery at Market East(5)	42.9	%	84.5	%	41.8	%	81.8	%	1.1	%	2.7	%
Jacksonville Mall	92.8	%	85.3	%	94.6	%	89.1	%	-1.8	%	-3.8	%
Lehigh Valley Mall	94.9	%	93.1	%	97.2	%	95.9	%	-2.3	%	-2.8	%
Logan Valley Mall	96.5	%	91.6	%	96.7	%	92.1	%	-0.2	%	-0.5	%
Lycoming Mall(1)	85.6	%	91.6	%	96.8	%	94.0	%	-11.2	%	-2.4	%
Magnolia Mall	97.5	%	94.5	%	93.2	%	82.9	%	4.3	%	11.6	%
Moorestown Mall	88.9	%	74.3	%	86.4	%	68.9	%	2.5	%	5.4	%
New River Valley Mall	96.5	%	94.2	%	97.8	%	96.0	%	-1.3	%	-1.8	%
Nittany Mall	90.2	%	80.2	%	94.0	%	87.8	%	-3.8	%	-7.6	%
North Hanover Mall	92.7	%	82.9	%	92.0	%	83.9	%	0.7	%	-1.0	%
Orlando Fashion Square	92.1	%	83.2	%	91.0	%	80.8	%	1.1	%	2.4	%
Palmer Park Mall	97.3	%	91.3	%	99.2	%	97.5	%	-1.9	%	-6.2	%
Patrick Henry Mall	97.7	%	95.5	%	95.4	%	91.1	%	2.3	%	4.4	%
Phillipsburg Mall	91.0	%	79.3	%	92.4	%	82.3	%	-1.4	%	-3.0	%
Plymouth Meeting Mall	82.3	%	73.5	%	80.5	%	71.8	%	1.8	%	1.8	%
The Mall at Prince Georges	98.5	%	96.8	%	96.5	%	92.6	%	2.0	%	4.2	%
South Mall	88.1	%	77.8	%	90.8	%	82.7	%	-2.7	%	-4.9	%
Springfield Mall	88.3	%	88.3	%	85.9	%	85.9	%	2.4	%	2.4	%
Uniontown Mall(1)	82.1	%	85.1	%	94.2	%	85.3	%	-12.1	%	-0.2	%
Valley Mall	98.6	%	97.5	%	97.0	%	94.8	%	1.6	%	2.7	%
Valley View Mall	92.1	%	89.0	%	92.6	%	89.7	%	-0.5	%	-0.7	%
Viewmont Mall	96.8	%	91.8	%	97.6	%	93.7	%	-0.8	%	-1.9	%
Voorhees Town Center	52.2	%	51.3	%	54.6	%	53.8	%	-2.4	%	-2.5	%
Washington Crown Center	91.9	%	85.0	%	90.1	%	81.7	%	1.8	%	3.3	%
Willow Grove Park(5)	70.3	%	95.3	%	65.7	%	87.5	%	4.6	%	7.8	%
Wiregrass Commons Mall	77.0	%	77.0	%	84.6	%	84.6	%	-7.6	%	-7.6	%
Woodland Mall	87.9	%	85.8	%	89.2	%	87.3	%	-1.3	%	-1.5	%
Wyoming Valley Mall	92.0	%	77.4	%	92.5	%	78.7	%	-0.5	%	-1.3	%
Enclosed Malls weighted average	88.0	%	87.0	%	88.2	%	86.0	%	-0.2	%	1.0	%
Consolidated Properties	87.8	%	86.7	%	88.0	%	85.6	%	-0.2	%	1.1	%
Unconsolidated Properties	93.5	%	91.7	%	94.4	%	92.6	%	-0.9	%	-0.9	%
Same Properties	88.0	%	87.0	%	88.2	%	86.0	%	-0.2	%	1.0	%

⁽¹⁾ The total occupancy percentages as of March 31, 2008 for these properties include the former Value City store locations that are currently vacant. The vacant store locations have been leased to Burlington Coat Factory, which is expected to open new stores between 3rd Quarter 2008 and 1st Quarter 2009.

⁽²⁾ The total occupancy percentage for Cherry Hill Mall as of March 31, 2007 reflects GLA for the former Strawbridge’s store location, which had not been decommissioned.

⁽³⁾ The total occupancy percentage as of March 31, 2008 for this property includes the former Value City store location that is currently vacant. The vacant store location has been leased to Value City Furniture and DSW, which are expected to open in 4th Quarter 2008 and 1st Quarter 2009, respectively.

⁽⁴⁾ The total occupancy percentage as of March 31, 2008 reflects the decommissioning of the former Belk store, pending redevelopment. This vacant department store represents 12.7% of the owned mall GLA.

⁽⁵⁾ The total occupancy percentages for The Gallery at Market East and Willow Grove Park include the former Strawbridge’s stores that are currently vacant, pending redevelopment. These vacant department stores represents 51.5% and 27.7% of the owned mall GLA for The Gallery at Market East and Willow Grove Park, respectively.

Page 11

Pennsylvania Real Estate Investment Trust

Strip and Power Center Rents Per Square Foot and Occupancy Percentages

	March 31, 2008						March 31, 2007						Change
			Occupancy						Occupancy						Occupancy
	Avg Base Rent		Total		Non-Anchor		Avg Base Rent		Total		Non-Anchor		Avg Base Rent		Total		Non-Anchor
Christiana Center	$	20.83	100.0	%	100.0	%	$	20.83	100.0	%	100.0	%	0.0	%	0.0	%	0.0	%
Creekview		15.16	100.0	%	100.0	%		14.65	100.0	%	100.0	%	3.5	%	0.0	%	0.0	%
Crest Plaza		17.55	97.9	%	95.9	%		16.94	96.6	%	93.6	%	3.6	%	1.3	%	2.3	%
The Commons at Magnolia		14.39	97.9	%	95.8	%		13.27	92.0	%	84.4	%	8.5	%	5.9	%	11.4	%
Metroplex Shopping Center		19.10	100.0	%	100.0	%		19.09	100.0	%	100.0	%	0.0	%	0.0	%	0.0	%
New River Valley Center		14.46	100.0	%	100.0	%		N/A	N/A		N/A		N/A		N/A		N/A
Northeast Tower Center		15.30	96.6	%	94.4	%		15.28	96.6	%	94.4	%	0.2	%	0.0	%	0.0	%
The Court at Oxford Valley		16.43	98.3	%	97.2	%		16.18	100.0	%	100.0	%	1.6	%	-1.7	%	-2.8	%
Paxton Towne Centre		15.53	97.9	%	96.8	%		15.52	97.9	%	96.8	%	0.0	%	0.0	%	0.0	%
Red Rose Commons		13.86	99.2	%	99.2	%		13.86	99.2	%	99.2	%	0.0	%	0.0	%	0.0	%
Springfield Park		21.73	90.9	%	73.5	%		21.68	90.9	%	73.5	%	0.2	%	0.0	%	0.0	%
Sunrise Plaza		20.11	98.2	%	64.8	%		N/A	N/A		N/A		N/A		N/A		N/A
Whitehall Mall		11.89	89.2	%	77.0	%		11.62	90.9	%	80.6	%	2.3	%	-1.7	%	-3.6	%
Weighted Average	$	16.06	97.0	%	95.2	%	$	16.02	97.1	%	95.4	%	0.2	%	-0.1	%	-0.2	%
Consolidated Properties	$	15.95	98.4	%	97.3	%	$	16.04	97.7	%	96.2	%	-0.6	%	0.7	%	1.2	%
Unconsolidated Properties	$	16.15	95.7	%	93.5	%	$	16.01	96.6	%	94.9	%	0.9	%	-0.9	%	-1.4	%
Same Properties	$	16.19	96.8	%	94.9	%	$	16.02	97.1	%	95.4	%	1.0	%	-0.3	%	-0.5	%
New Properties	$	14.61	99.2	%	98.5	%		N/A	N/A		N/A		N/A		N/A		N/A

Page 12

Pennsylvania Real Estate Investment Trust

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

(dollars in thousands)

	Paying Minimum Rent		Paying Percentage of Sales in lieu of Minimum Rent (2)		Total		Minimum Rent
Tenant(1)	Number of 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.	50	645,193	5	40,855	55	686,048	$	13,308	$	12,391	3.93	%
Foot Locker, Inc.	78	406,566	4	14,040	82	420,606		9,102		8,599	2.73	%
JCPenney Company, Inc.	23	2,281,660	6	824,327	29	3,105,987		6,999		6,999	2.22	%
Limited Brands, Inc.	59	276,610	13	40,012	72	316,622		7,277		6,843	2.17	%
Zale Corporation	80	62,615	1	289	81	62,904		5,651		5,327	1.69	%
Sears Holding Corporation	24	2,796,396	6	881,839	30	3,678,235		5,445		5,302	1.68	%
American Eagle Outfitters, Inc.	35	192,940	1	5,013	36	197,953		5,406		5,195	1.65	%
Sterling Jewelers, Inc.	44	66,905	—	—	44	66,905		4,986		4,796	1.52	%
Dick’s Sporting Goods	9	435,893	—	—	9	435,893		5,505		4,628	1.47	%
Luxottica Group S.p.A.	54	129,797	1	548	55	130,345		4,356		4,021	1.28	%
Regis Corporation	99	123,104	—	—	99	123,104		3,755		3,611	1.15	%
The Finish Line, Inc.	36	164,369	2	9,528	38	173,897		3,650		3,598	1.14	%
The Children’s Place Retail	32	141,244	1	3,898	33	145,142		3,810		3,514	1.12	%
Borders Group, Inc.	26	198,064	3	15,476	29	213,540		3,639		3,459	1.10	%
Golden Gate Private Equity(4)	15	135,985	2	16,472	17	152,457		3,687		3,449	1.10	%
Transworld Entertainment Corp.	32	146,614	3	13,026	35	159,640		3,571		3,334	1.06	%
Abercrombie & Fitch Co.	18	124,062	—	—	18	124,062		3,628		3,260	1.04	%
Hallmark Cards, Inc.	38	151,966	4	18,198	42	170,164		3,363		3,255	1.03	%
Genesco Inc.	60	74,793	—	—	60	74,793		3,208		3,142	1.00	%
Pacific Sunwear of California	34	122,328	3	10,431	37	132,759		3,281		3,127	0.99	%
Total Top 20 Tenants	846	8,677,104	55	1,893,952	901	10,571,056	$	103,627	$	97,850	31.07	%
Total Retail Leases					3,402				$	314,940	100.00	%

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

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

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

⁽⁴⁾ Consists of 17 Express stores.

Page 13

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(2)		Percent of PREIT’s Total		Average Expiring Minimum Rent psf
Holdover	153	382,900	3.1	%		9,939		9,007	3.2	%		25.96
2008	306	679,680	5.4	%		18,242		17,775	6.4	%		26.84
2009	510	1,357,976	10.9	%		33,469		32,377	11.6	%		24.65
2010	458	1,634,802	13.1	%		36,723		35,146	12.6	%		22.46
2011	440	1,581,414	12.7	%		39,097		35,308	12.6	%		24.72
2012	301	1,141,005	9.1	%		30,625		28,335	10.1	%		26.84
2013	208	785,393	6.3	%		17,905		16,637	5.9	%		22.80
2014	155	601,875	4.8	%		15,481		13,719	4.9	%		25.72
2015	180	801,174	6.4	%		20,416		18,065	6.5	%		25.48
2016	243	1,055,821	8.5	%		29,303		26,705	9.5	%		27.75
Thereafter	337	2,457,527	19.7	%		49,757		46,830	16.8	%		20.25
Total/Average	3,291	12,479,567	100.0	%	$	300,958	$	279,902	100.0	%	$	24.12
Anchors(1)
		Gross Leasable Area			Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring (3)	Expiring GLA	Percent of Total		Min Rent in Expiring Year		PREIT’s Share of Min Rent in Expiring Year(2)		Percent of PREIT’s Total		Average Expiring Minimum Rent psf
2008	2	131,077	1.2	%		368		368	1.1	%		2.81
2009	9	915,799	8.3	%		2,614		2,222	6.3	%		2.85
2010	18	1,681,789	15.3	%		4,867		4,867	13.9	%		2.89
2011	23	1,893,066	17.2	%		6,546		5,423	15.5	%		3.46
2012	9	889,626	8.1	%		2,165		2,129	6.1	%		2.43
2013	13	1,035,866	9.4	%		4,543		4,543	13.0	%		4.39
2014	6	662,582	6.0	%		2,081		2,081	5.9	%		3.14
2015	2	220,398	2.0	%		769		769	2.2	%		3.49
2016	3	455,432	4.1	%		863		863	2.5	%		1.90
Thereafter	26	3,105,012	28.2	%		13,113		11,773	33.5	%		4.22
Total/Average	111	10,990,647	100.0	%	$	37,930	$	35,037	100.0	%	$	3.45

⁽¹⁾ Only includes owned space.

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

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

Page 14

Pennsylvania Real Estate Investment Trust

Retail Gross Leasable Area Summary as of March 31, 2008

		Owned GLA
		Anchors	Non-anchors	Total	GLA Not Owned	Total GLA
Malls
Beaver Valley Mall		511,267	445,979	957,246	204,770	1,162,016
Capital City Mall		204,301	284,791	489,092	120,000	609,092
Chambersburg Mall(1)		241,690	212,666	454,356	—	454,356
Cherry Hill Mall		—	561,461	561,461	478,885	1,040,346
Crossroads Mall		256,248	195,528	451,776	—	451,776
Cumberland Mall(1)		283,365	385,583	668,948	273,230	942,178
Dartmouth Mall		208,460	322,620	531,080	140,000	671,080
Exton Square Mall		440,301	369,179	809,480	277,468	1,086,948
Francis Scott Key Mall(1)		291,620	280,904	572,524	139,333	711,857
Gadsden Mall		213,266	203,085	416,351	—	416,351
The Gallery at Market East(2)		683,471	397,313	1,080,784	—	1,080,784
Jacksonville Mall		242,115	233,677	475,792	—	475,792
Lehigh Valley Mall	��	212,000	573,364	785,364	371,986	1,157,350
Logan Valley Mall		454,387	324,493	778,880	—	778,880
Lycoming Mall(1)		321,441	380,926	702,367	120,000	822,367
Magnolia Mall		343,118	277,944	621,062	—	621,062
Moorestown Mall		408,356	311,117	719,473	321,200	1,040,673
New River Valley Mall		175,306	263,193	438,499	—	438,499
Nittany Mall		221,462	215,654	437,116	95,000	532,116
North Hanover Mall		206,792	154,424	361,216	—	361,216
Orlando Fashion Square		491,999	433,875	925,874	155,576	1,081,450
Palmer Park Mall		314,235	143,459	457,694	—	457,694
Patrick Henry Mall		279,619	295,053	574,672	140,000	714,672
Phillipsburg Mall		326,170	252,377	578,547	—	578,547
Plymouth Meeting Mall		188,429	382,543	570,972	214,635	785,607
The Mall at Prince Georges		479,619	434,323	913,942	—	913,942
South Mall		188,858	216,347	405,205	—	405,205
Springfield Mall		—	221,781	221,781	367,176	588,957
Uniontown Mall(1)		421,378	276,786	698,164	—	698,164
Valley Mall		280,549	381,515	662,064	243,400	905,464
Valley View Mall		96,357	247,191	343,548	254,596	598,144
Viewmont Mall		386,262	243,674	629,936	120,000	749,936
Voorhees Town Center		4,404	232,161	236,565	396,783	633,348
Washington Crown Center		245,401	290,460	535,861	140,095	675,956
Willow Grove Park(3)		443,430	345,977	789,407	413,121	1,202,528
Wiregrass Commons Mall		—	229,829	229,829	403,163	632,992
Woodland Mall		71,000	412,866	483,866	725,186	1,209,052
Wyoming Valley Mall		592,110	321,678	913,788	—	913,788
Total Malls (38 properties)		10,728,786	11,755,796	22,484,582	6,115,603	28,600,185
Strip and Power Centers
Christiana Center		190,814	111,595	302,409	—	302,409
Creekview		—	136,086	136,086	288,916	425,002
Crest Plaza		53,445	60,826	114,271	143,130	257,401
The Commons at Magnolia		50,571	52,723	103,294	126,200	229,494
Metroplex Shopping Center		67,185	410,276	477,461	300,729	778,190
New River Valley Center		—	163,923	163,923	—	163,923
Northeast Tower Center		119,388	182,536	301,924	175,311	477,235
The Court at Oxford Valley		176,831	280,072	456,903	247,623	704,526
Paxton Towne Centre		151,627	277,836	429,463	273,058	702,521
Red Rose Commons		—	263,452	263,452	199,590	463,042
Springfield Park		83,539	43,432	126,971	145,669	272,640
Sunrise Plaza		132,874	7,100	139,974	—	139,974
Whitehall Mall		294,635	262,443	557,078	—	557,078
Total Strip and Power Centers (13 properties)		1,320,909	2,252,300	3,573,209	1,900,226	5,473,435
CONSOLIDATED PROPERTIES		11,215,505	11,953,276	23,168,781	6,383,056	29,551,837
UNCONSOLIDATED PROPERTIES		834,190	2,054,820	2,889,010	1,632,773	4,521,783
TOTAL PROPERTIES		12,049,695	14,008,096	26,057,791	8,015,829	34,073,620

(1) Includes vacant former Value City locations, totaling 392,518 square feet.

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

(3) Includes 218,430 square feet of anchor space under redevelopment.

Page 15

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2008

Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Years Since Renovation	Anchors / Major Tenants	Lease Expiration
MALLS
Beaver Valley Mall Monaca, PA	100%	2002	1970/1991	17	Boscov’s JCPenney Macy’s Sears	9/30/18 9/30/17 (1) 8/15/11
Capital City Mall Camp Hill, PA	100%	2003	1974/2005	3	JCPenney Macy’s Sears	11/30/10 (1) 7/28/09
Chambersburg Mall Chambersburg, PA	100%	2003	1982	26	Bon-Ton JCPenney Sears	1/28/11 3/31/12 2/9/10
Cherry Hill Mall Cherry Hill, NJ	100%	2003	1961/1990	18	The Container Store Crate and Barrel JCPenney Macy’s	2/28/18 1/31/23 (1) (1)
Crossroads Mall(2) Beckley, WV	100%	2003	1981	27	Belk JCPenney Sears	11/4/08 12/31/11 3/31/11
Cumberland Mall Vineland, NJ	100%	2005	1973/2003	5	Best Buy Boscov’s BJ’s Home Depot JCPenney	1/31/16 (1) (1) 10/31/19 11/30/08
Dartmouth Mall Dartmouth, MA	100%	1997	1971/2000	8	JCPenney Macy’s Sears	7/31/09 (1) 4/12/16
Exton Square Mall(2) Exton, PA	100%	2003	1973/2000	8	Boscov’s JCPenney K-Mart Macy’s Sears	10/31/19 5/31/20 (1) (1) 1/31/20
Francis Scott Key Mall Frederick, MD	100%	2003	1978/1991	17	Barnes and Noble JCPenney Macy’s Sears	4/30/17 9/30/11 (1) 7/31/13
Gadsden Mall Gadsden, AL	100%	2005	1974/1990	18	Belk Sears	7/31/14 3/5/09
The Gallery at Market East(2) Philadelphia, PA	100%	2003	1977/1990	18	Burlington Coat Factory	2/28/32
Jacksonville Mall Jacksonville, NC	100%	2003	1981/1998	10	Belk JCPenney Sears	8/21/11 8/31/10 8/4/11
Lehigh Valley Mall(3) Allentown, PA	50%	1973	1977/2007	1	Barnes and Noble Boscov’s JCPenney Macy’s	10/31/17 (1) (1) 7/31/12
Logan Valley Mall Altoona, PA	100%	2003	1960/1997	11	JCPenney Macy’s Sears	1/31/17 1/31/10 10/31/16
Lycoming Mall Pennsdale, PA	100%	2003	1978/1990	18	Best Buy Bon-Ton Borders Dick’s Sporting Goods JCPenney Macy’s Sears	1/31/17 7/31/11 1/31/17 1/31/17 10/31/10 (1) 7/31/13
Magnolia Mall Florence, SC	100%	1997	1979/1992	16	Belk JCPenney Sears	1/31/11 3/31/12 10/16/09
Moorestown Mall Moorestown, NJ	100%	2003	1963/2000	8	Boscov’s Lord & Taylor Macy’s Sears	10/31/10 (1) (1) 10/5/22
New River Valley Mall Christiansburg, VA	100%	2003	1988/2007	1	Belk Dick’s Sporting Goods JCPenney Regal Cinemas Sears	4/19/11 1/31/17 3/31/13 4/30/22 8/2/13
Nittany Mall State College, PA	100%	2003	1968/1990	18	Bon-Ton JCPenney Macy’s Sears	1/31/13 7/31/10 (1) 8/31/10

Page 16

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2008 (continued)

Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Years Since Renovation	Anchors / Major Tenants	Lease Expiration
North Hanover Mall Hanover, PA	100%	2003	1967/1999	9	Dick’s Sporting Goods JCPenney Sears	1/31/18 1/31/11 11/30/09
Orlando Fashion Square(2) Orlando, FL	100%	2004	1973/2003	5	Dillard’s JCPenney Macy’s Sears	1/31/14 4/30/13 10/31/71 (1)
Palmer Park Mall Easton, PA	100%	1972/2003	1972/1998	10	Bon-Ton Boscov’s	7/25/14 10/31/18
Patrick Henry Mall Newport News, VA	100%	2003	1988/2005	3	Borders Dick’s Sporting Goods Dillard’s JCPenney Macy’s	1/31/20 1/31/22 9/22/13 1/31/15 (1)
Phillipsburg Mall Phillipsburg, NJ	100%	2003	1989/2003	5	Bon-Ton JCPenney Kohl’s Sears	1/31/10 3/31/10 1/31/25 4/30/09
Plymouth Meeting Mall(2) Plymouth Meeting, PA	100%	2003	1966/1999	9	AMC Theater Boscov’s Macy’s	12/31/18 10/31/16 (1)
The Mall at Prince Georges Hyattsville, MD	100%	1998	1959/2004	4	JCPenney Macy’s Marshalls Ross Dress for Less Target	7/31/11 10/31/18 9/30/16 1/31/18 1/31/10
South Mall Allentown, PA	100%	2003	1975/1992	16	Bon-Ton Stein Mart Steve & Barry’s	1/28/11 10/31/11 1/31/11
Springfield Mall Springfield, PA	50%	2005	1974/1997	11	Macy’s	(1)
Uniontown Mall(2) Uniontown, PA	100%	2003	1972/1990	18	Bon-Ton JCPenney Roomful Express Furn. Sears Teletech Customer Care	1/31/11 10/31/10 3/26/10 2/25/13 6/30/13
Valley Mall Hagerstown, MD	100%	2003	1974/1999	9	Bon-Ton JCPenney Macy’s Sears	1/31/14 10/3/09 (1) (1)
Valley View Mall La Crosse, WI	100%	2003	1980/2001	7	Barnes and Noble Herberger’s JCPenney Macy’s Sears	11/30/16 (1) 7/31/10 (1) (1)
Viewmont Mall Scranton, PA	100%	2003	1968/2006	2	JCPenney Macy’s Sears	10/31/10 (1) 12/31/10
Voorhees Town Center(2) Voorhees, NJ	100%	2003	1970/2007	1	Boscov’s Macy’s	(1) (1)
Washington Crown Center Washington, PA	100%	2003	1969/1999	9	Bon-Ton Gander Mountain Sports Macy’s Sears	1/31/10 7/24/13 (1) 8/17/09
Willow Grove Park Willow Grove, PA	100%	2000/2003	1982/2001	7	Bloomingdale’s The Cheesecake Factory Macy’s Sears	(1) 1/31/28 1/31/22 (1)
Wiregrass Commons Mall(2) Dothan, AL	100%	2003	1986/1999	9	Dillard’s JCPenney McRae’s Parisian	(1) (1) (1) (1)
Woodland Mall Grand Rapids, MI	100%	2005	1968/1998	10	Apple JCPenney Kohl’s Macy’s Sears	6/30/15 (1) 1/31/19 (1) (1)
Wyoming Valley Mall Wilkes-Barre, PA	100%	2003	1974/2006	2	Bon-Ton JCPenney Macy’s Sears	1/31/12 4/30/12 1/31/12 8/1/11

Page 17

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2008 (continued)

Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Years Since Renovation	Anchors / Major Tenants	Lease Expiration
POWER CENTERS
Christiana Center Newark, DE	100%	1998	1998	10	Costco Dick’s Sporting Goods	9/30/18 11/30/13
Creekview Warrington, PA	100%	1999	2001	7	Genuardi’s Lowe’s Target	12/31/21 (1) (1)
Metroplex Shopping Center(3) Plymouth Meeting, PA	50%	1999	2001	7	Giant Food Store Lowe’s Target	2/28/21 (1) (1)
New River Valley Center Christiansburg, VA	100%	2005	2007	1	Bed, Bath & Beyond Best Buy Staples	1/31/18 1/31/17 11/30/17
Northeast Tower Center Philadelphia, PA	100%	1998	1997	11	Home Depot Raymour & Flanigan Wal-Mart	(1) (1) 1/31/14
The Court at Oxford Valley(3) Langhorne, PA	50%	1997	1996	12	Best Buy BJ’s Dick’s Sporting Goods Home Depot Linens ‘n Things	12/31/11 (1) 4/30/11 (1) 2/28/17
Paxton Towne Centre Harrisburg, PA	100%	1999	2001	7	Costco Kohl’s Target Weis Markets	(1) 1/25/21 (1) 11/30/20
Red Rose Commons(3) Lancaster, PA	50%	1998	1998	10	Home Depot Weis Markets	(1) (1)
Sunrise Plaza Forked River, NJ	100%	2005	2007	1	Home Depot	1/31/38
Whitehall Mall(3) Allentown, PA	50%	1964	1964/1998	10	Bed, Bath & Beyond Kohl’s Sears	1/31/10 3/9/17 9/18/11
STRIP CENTERS
Crest Plaza Allentown, PA	100%	1964	1959/2003	5	Target Weis Market	(1) 10/31/14
The Commons at Magnolia Florence, SC	100%	1999	1991/2002	6	Bed, Bath & Beyond Goody’s Target	1/31/13 5/31/12 (1)
Springfield Park Springfield, PA	50%	1997/1998	1997/1998	10	Bed, Bath & Beyond LA Fitness Target	1/31/09 3/31/17 (1)

⁽¹⁾ Space is not owned by PREIT.

⁽²⁾ Properties are subject to a ground lease.

⁽³⁾ Property is managed by a third party.

Page 18

Pennsylvania Real Estate Investment Trust

Balance Sheet

Proportionate Consolidation Method ⁽¹⁾

(in thousands, except per share amounts)

	March 31, 2008									December 31, 2007
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,109,431		$	204,282		$	3,313,713		$	3,074,562		$	203,671		$	3,278,233
Construction in progress		333,909			1,979			335,888			287,116			1,834			288,950
Land held for development		5,616			172			5,788			5,616			172			5,788
TOTAL INVESTMENTS IN REAL ESTATE		3,448,956			206,433			3,655,389			3,367,294			205,677			3,572,971
Accumulated depreciation		(428,313	)		(47,180	)		(475,493	)		(401,502	)		(45,458	)		(446,960	)
NET INVESTMENTS IN REAL ESTATE		3,020,643			159,253			3,179,896			2,965,792			160,219			3,126,011
Investments in partnerships, at equity		35,859			(35,859	)		—			36,424			(36,424	)		—
Other assets:
Cash and cash equivalents		20,650			3,826			24,476			27,925			5,302			33,227
Rents and other receivables(2)		45,067			9,243			54,310			49,094			9,755			58,849
Intangible assets, net		95,914			813			96,727			104,136			873			105,009
Deferred costs and other assets, net		79,255			8,549			87,804			80,703			8,452			89,155
TOTAL OTHER ASSETS		276,745			(13,428	)		263,317			298,282			(12,042	)		286,240
TOTAL ASSETS	$	3,297,388		$	145,825		$	3,443,213		$	3,264,074		$	148,177		$	3,412,251
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	1,700,248		$	187,603		$	1,887,851		$	1,643,122		$	188,089		$	1,831,211
Debt premium on mortgage notes payable		10,721			—			10,721			13,820			—			13,820
Exchangeable notes		287,500			—			287,500			287,500			—			287,500
Credit Facility		330,000			—			330,000			330,000			—			330,000
Distributions in excess of partnership investments		48,305			(48,305	)		—			49,166			(49,166	)		—
Other liabilities		145,328			6,527			151,855			127,591			9,254			136,845
TOTAL LIABILITIES		2,522,102			145,825			2,667,927			2,451,199			148,177			2,599,376
MINORITY INTEREST		57,600			—			57,600			55,256			—			55,256
Shareholders’ equity:
Shares of beneficial interest at $1 par		39,326			—			39,326			39,134			—			39,134
Capital contributed in excess of par		820,864			—			820,864			818,966			—			818,966
Accumulated other comprehensive loss		(24,459	)		—			(24,459	)		(6,968	)		—			(6,968	)
Distributions in excess of net income		(118,045	)		—			(118,045	)		(93,513	)		—			(93,513	)
TOTAL SHAREHOLDERS’ EQUITY		717,686			—			717,686			757,619			—			757,619
TOTAL LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY	$	3,297,388		$	145,825		$	3,443,213		$	3,264,074		$	148,177		$	3,412,251

⁽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 $25.7 million ($22.5 million consolidated, $3.2 million unconsolidated partnership) as of March 31, 2008 and $25.1 million ($21.8 million consolidated, $3.3 million unconsolidated partnership) as of December 31, 2007.

Page 19

Pennsylvania Real Estate Investment Trust

Balance Sheet

Property Type⁽¹⁾

(in thousands, except per share amounts)

	March 31, 2008												December 31, 2007
	Malls			Power and Strip Centers			Corporate, Development and Other Properties			Total			Malls			Power and Strip Centers			Corporate, Development and Other Properties			Total
ASSETS
Investments in real estate:
Investments in real estate, at cost	$	2,956,943		$	324,359		$	38,199		$	3,319,501		$	2,943,305		$	318,541		$	22,175		$	3,284,021
Construction in progress		221,854			16,624			97,410			335,888			176,607			18,718			93,625			288,950
TOTAL INVESTMENT IN REAL ESTATE		3,178,797			340,983			135,609			3,655,389			3,119,912			337,259			115,800			3,572,971
Accumulated depreciation		(405,384	)		(68,852	)		(1,257	)		(475,493	)		(379,637	)		(66,210	)		(1,113	)		(446,960	)
NET INVESTMENTS IN REAL ESTATE		2,773,413			272,131			134,352			3,179,896			2,740,275			271,049			114,687			3,126,011
Other assets:
Cash and cash equivalents		21,704			1,994			778			24,476			19,076			1,723			12,428			33,227
Rents and other receivables (2)		36,659			12,505			5,146			54,310			42,095			12,370			4,384			58,849
Intangible assets, net		84,922			—			11,805			96,727			93,204			—			11,805			105,009
Deferred costs and other assets, net		51,724			10,546			25,534			87,804			49,889			9,847			29,419			89,155
TOTAL OTHER ASSETS		195,009			25,045			43,263			263,317			204,264			23,940			58,036			286,240
TOTAL ASSETS	$	2,968,422		$	297,176		$	177,615		$	3,443,213		$	2,944,539		$	294,989		$	172,723		$	3,412,251
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	1,790,246		$	89,605		$	8,000		$	1,887,851		$	1,741,022		$	90,189		$	—		$	1,831,211
Debt premium on mortgage notes payable		10,549			172			—			10,721			13,561			259			—			13,820
Exchangeable notes		—			—			287,500			287,500			—			—			287,500			287,500
Credit Facility		—			—			330,000			330,000			—			—			330,000			330,000
Other liabilities		64,098			1,547			86,210			151,855			63,998			1,693			71,154			136,845
TOTAL LIABILITIES		1,864,893			91,324			711,710			2,667,927			1,818,581			92,141			688,654			2,599,376
MINORITY INTEREST		—			—			57,600			57,600			—			—			55,256			55,256
Shareholders’ equity:
Shares of beneficial interest at $1 par		—			—			39,326			39,326			—			—			39,134			39,134
Capital contributed in excess of par		—			—			820,864			820,864			—			—			818,966			818,966
Accumulated other comprehensive loss		—			—			(24,459	)		(24,459	)		—			—			(6,968	)		(6,968	)
Distributions in excess of net income		—			—			(118,045	)		(118,045	)		—			—			(93,513	)		(93,513	)
Net investment		1,103,529			205,852			(1,309,381	)		—			1,125,958			202,848			(1,328,806	)		—
TOTAL SHAREHOLDERS’ EQUITY		1,103,529			205,852			(591,695	)		717,686			1,125,958			202,848			(571,187	)		757,619
TOTAL LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY	$	2,968,422		$	297,176		$	177,615		$	3,443,213		$	2,944,539		$	294,989		$	172,723		$	3,412,251

⁽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 $25.7 million ($22.5 million wholly owned, $3.2 million partnership) as of March 31, 2008 and $25.1 million ($21.8 million wholly owned, $3.3 million partnership) as of December 31, 2007.

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Pennsylvania Real Estate Investment Trust

Investment in Real Estate⁽¹⁾

(in thousands)

	March 31, 2008								December 31, 2007
	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	$	67,035	$	23	$	11,292	$	55,766	$	66,992	$	30	$	10,482	$	56,540
Capital City Mall		94,341		—		11,969		82,372		94,265		384		11,100		83,549
Chambersburg Mall		36,417		—		4,655		31,762		36,356		—		4,260		32,096
Cherry Hill Mall		236,643		45,386		26,988		255,041		233,449		33,621		25,144		241,926
Crossroads Mall		34,122		—		5,065		29,057		34,094		—		4,754		29,340
Cumberland Mall		58,386		6,007		4,254		60,139		58,385		—		3,871		54,514
Dartmouth Mall		61,065		—		19,835		41,230		61,088		—		19,178		41,910
Exton Square Mall		146,267		—		17,104		129,163		146,247		—		16,256		129,991
Francis Scott Key Mall		70,493		4,000		8,681		65,812		70,056		—		8,038		62,018
Gadsden Mall		52,337		1,764		3,987		50,114		52,262		1,522		3,667		50,117
The Gallery at Market East		80,308		32,627		9,589		103,346		80,273		30,210		9,002		101,481
Jacksonville Mall		68,705		3,703		8,759		63,649		68,594		3,255		8,193		63,656
Logan Valley Mall		93,970		—		13,616		80,354		93,781		—		12,802		80,979
Lycoming Mall		73,167		347		8,201		65,313		72,843		357		7,555		65,645
Magnolia Mall		85,459		255		16,221		69,493		82,063		3,036		15,338		69,761
Moorestown Mall		80,701		5,306		14,620		71,387		80,669		3,637		13,805		70,501
New River Valley Mall		56,633		—		6,282		50,351		56,562		123		5,499		51,186
Nittany Mall		41,959		—		5,403		36,556		41,964		—		5,073		36,891
North Hanover Mall		37,262		16,620		4,353		49,529		37,075		15,758		4,017		48,816
Orlando Fashion Square		113,330		155		10,205		103,280		113,134		154		9,412		103,876
Palmer Park Mall		34,481		—		9,849		24,632		34,484		—		9,606		24,878
Patrick Henry Mall		138,372		—		17,468		120,904		138,263		—		16,143		122,120
Phillipsburg Mall		52,304		24		6,225		46,103		52,304		21		5,822		46,503
Plymouth Meeting Mall		65,246		50,066		11,570		103,742		64,699		38,473		10,894		92,278
The Mall at Prince Georges		99,693		61		23,082		76,672		99,641		—		22,192		77,449
South Mall		28,908		—		3,484		25,424		28,905		—		3,268		25,637
Uniontown Mall		36,784		—		5,618		31,166		36,782		—		5,275		31,507
Valley Mall		90,026		96		12,559		77,563		89,003		995		11,786		78,212
Valley View Mall		66,570		2		7,556		59,016		66,570		—		7,073		59,497
Viewmont Mall		85,617		58		9,200		76,475		85,520		36		8,519		77,037
Voorhees Town Center		26,711		22,727		3,934		45,504		24,104		18,659		3,407		39,356
Washington Crown Center		40,188		—		8,114		32,074		40,183		—		7,536		32,647
Westgate Anchor Pad		3,450		—		—		3,450		3,450		—		—		3,450
Willow Grove Park		186,224		25,760		29,372		182,612		186,092		25,204		27,888		183,408
Wiregrass Commons Mall		36,981		5,787		4,633		38,135		37,031		234		4,357		32,908
Woodland Mall		179,815		86		12,800		167,101		179,785		45		11,398		168,432
Wyoming Valley Mall		103,129		471		11,522		92,078		102,861		420		10,628		92,653
Total Consolidated Malls		2,863,099		221,331		388,065		2,696,365		2,849,829		176,174		363,238		2,662,765
Unconsolidated Malls
Lehigh Valley Mall		39,377		222		12,270		27,329		39,011		143		11,841		27,313
Springfield Mall		54,467		301		5,049		49,719		54,465		290		4,558		50,197
Total Unconsolidated Malls		93,844		523		17,319		77,048		93,476		433		16,399		77,510
TOTAL MALLS	$	2,956,943	$	221,854	$	405,384	$	2,773,413	$	2,943,305	$	176,607	$	379,637	$	2,740,275

⁽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.

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Pennsylvania Real Estate Investment Trust

Investment in Real Estate⁽¹⁾ (continued)

(in thousands)

	March 31, 2008								December 31, 2007
	Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Strip and Power Centers
Christiana Center	$	40,935	$	—	$	9,081	$	31,854	$	40,935	$	—	$	8,796	$	32,139
Creekview		19,098		—		5,834		13,264		19,098		—		5,605		13,493
Crest Plaza		16,485		—		3,962		12,523		16,432		—		3,801		12,631
The Commons at Magnolia		10,119		—		2,629		7,490		10,119		—		2,526		7,593
New River Valley Center		26,500		93		405		26,188		21,378		4,816		164		26,030
Northeast Tower Center		33,630		—		6,019		27,611		33,630		—		5,804		27,826
Paxton Towne Centre		54,056		111		11,456		42,711		54,056		9		11,062		43,003
Sunrise Plaza		19,162		16,420		412		35,170		18,519		13,893		199		32,213
Total Consolidated Strip and Power Centers		219,985		16,624		39,798		196,811		214,167		18,718		37,957		194,928
Unconsolidated Strip and Power Centers
Metroplex Shopping Center		42,025		—		11,064		30,961		42,025		—		10,656		31,369
The Court at Oxford Valley		27,847		—		6,907		20,940		27,847		—		6,757		21,090
Red Rose Commons		11,753		—		2,704		9,049		11,753		—		2,613		9,140
Whitehall Mall		15,689		—		7,287		8,402		15,689		—		7,166		8,523
Springfield Park		7,060		—		1,092		5,968		7,060		—		1,061		5,999
Total Unconsolidated Strip and Power Centers		104,374		—		29,054		75,320		104,374		—		28,253		76,121
TOTAL STRIP AND POWER CENTERS	$	324,359	$	16,624	$	68,852	$	272,131	$	318,541	$	18,718	$	66,210	$	271,049
Development Properties
The Plaza at Magnolia	$	—	$	753	$	—	$	753	$	—	$	523	$	—	$	523
Monroe Marketplace		—		25,921		—		25,921		—		23,559		—		23,559
Springhills		—		29,740		—		29,740		—		29,378		—		29,378
White Clay Point(2)		—		39,540		—		39,540		—		38,764		—		38,764
Total Development Properties		—		95,954		—		95,954		—		92,224		—		92,224
Unconsolidated Development Properties
Pavilion at Market East		6,064		1,456		807		6,713		5,821		1,401		806		6,416
Total Unconsolidated Development Properties		6,064		1,456		807		6,713		5,821		1,401		806		6,416
Other Properties
One Cherry Hill Plaza		15,772		—		59		15,713		—		—		—		—
P&S Building		1,339		—		335		1,004		1,339		—		307		1,032
Plymouth Commons		9,236		—		56		9,180		9,227		—		—		9,227
Land held for development—consolidated		5,616		—		—		5,616		5,616		—		—		5,616
Land held for development—unconsolidated		172		—		—		172		172		—		—		172
Total Other Properties	$	32,135	$	—	$	450	$	31,685	$	16,354	$	—	$	307	$	16,047
TOTAL INVESTMENT IN REAL ESTATE	$	3,319,501	$	335,888	$	475,493	$	3,179,896	$	3,284,021	$	288,950	$	446,960	$	3,126,011
CONSOLIDATED PROPERTIES	$	3,115,047	$	333,909	$	428,313	$	3,020,643	$	3,080,178	$	287,116	$	401,502	$	2,965,792
UNCONSOLIDATED PROPERTIES		204,454		1,979		47,180		159,253		203,843		1,834		45,458		160,219
TOTAL INVESTMENT IN REAL ESTATE	$	3,319,501	$	335,888	$	475,493	$	3,179,896	$	3,284,021	$	288,950	$	446,960	$	3,126,011

⁽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⁾ Formerly New Garden Town Center.

Page 22

Pennsylvania Real Estate Investment Trust

Property Redevelopment and Repositioning Summary as of March 31, 2008

NAME OF PROJECT LOCATION	PREIT’s PROJECTED SHARE OF COST	PREIT’S INVESTMENT	RETURN ON INCREMENTAL INVESTMENT	CONSTRUCTION START DATE	EXPECTED CONSTRUCTION COMPLETION
ENCLOSED MALL	(in millions)	(in millions)
Cherry Hill Mall Cherry Hill, NJ	$197.7	$71.8	7.1%	2007	2009
•        Opened Crate & Barrel and The Container Store in November 2007 on two outparcels totaling 59,000 sf; •        Opening a two-level, 138,000 sf Nordstrom (anticipated spring of 2009); •        Opening 88,000 sf of new in-line retail space in the former food court and Strawbridge’s area; •        Opening 72,000 sf from a combination of a Bistro Row and restaurants; •        Net increase in total property GLA will be approximately 95,000 sf.
Gadsden Mall Gadsden, AL	5.1	1.8	8.0%	2007	2008
•        Opening 85,000 sf JCPenney in 4th quarter 2008 in former 61,000 sf Belk store; •        Net increase in total property GLA will be approximately 24,000 sf.
Jacksonville Mall Jacksonville, NC	8.3	3.9	8.0%	2007	2008
•        Phase I - Opened 28,000 sf Barnes & Noble (13,000 sf of new GLA) in April 2008; •        Phase II - Opening 6,000 sf Red Robin restaurant in 3rd Quarter 2008 and 10,000 sf of retail in 4th Quarter 2008; exterior mall renovation, new mall entrance and pedestrian plaza.
Moorestown Mall Moorestown, NJ	13.7	7.5	8.2%	2007	2008
•        Opened 16,000 sf Lane Furniture in September 2007 (8,000 sf of new GLA); •        Opened 15,000 sf Eastern Mountain Sports in May 2008 (4,000 sf of new GLA); •        Opening Pei Wei Asian Diner and Potbelly Sandwich Works, totaling approximately 6,000 sf of outparcel space, in 3rd Quarter 2008; •        Creating 3 spaces with exterior frontage totaling approximately 6,000 sf of recommissioned space (new GLA); •        Updating the entrances and facades; •        Net increase in property GLA will be approximately 24,000 sf.
North Hanover Mall Hanover, PA	35.1	23.4	7.8%	2007	2009
•        Opening 172,000 sf Boscov’s in the former 70,000 sf Bon-Ton anchor and absorbing 12,000 sf of existing in-line space (90,000 sf of new GLA); •        Opened 50,000 sf Dick’s Sporting Goods in October 2007 in the former 63,000 sf Black Rose Antiques location (net decrease in GLA of 13,000 sf); •        Relocated and downsized Black Rose Antiques to 15,000 sf of previously vacant space in adjacent strip center; •        Net increase in property GLA will be approximately 77,000 sf.
Plymouth Meeting Mall Plymouth Meeting, PA	83.9	51.9	8.6%	2007	2009
•        Opened P.F. Chang’s China Bistro in May 2008; •        Opening 65,000 sf Whole Foods Market; •        Opening four restaurant outparcels (California Pizza Kitchen and Redstone American Grill in 2nd Quarter 2008, Benihana in 4th Quarter 2008), totaling 27,000 sf; •        Opening 39,000 sf of retail space; •        Opening 4,000 sf Citibank outparcel in 3rd Quarter 2008; •        Net increase in property GLA will be approximately 142,000 sf.
Willow Grove Park Willow Grove, PA	40.2	32.8	6.3%	2007	2009
•        Opening 194,000 sf Boscov’s and 22,000 sf of restaurants in the former 229,000 sf Strawbridge’s. Included in the 22,000 sf of restaurants is a 10,000 sf The Cheesecake Factory that opened in September 2007; •        Net reduction in property GLA will be approximately 13,000 sf.
Wiregrass Commons Mall Dothan, AL	11.8	5.8	8.5%	2008	2009
•        Purchased 65,000 sf former Parisian store and expanding to an 85,000 sf Belk opening in 4th Quarter 2008; •        Former McRae’s anchor will be filled with an 80,000 sf Burlington Coat Factory, with expected delivery in 4th Quarter 2008 and opening in 2nd Quarter 2009; •        Interior mall renovation in 4th Quarter 2008.
MIXED USE
Voorhees Town Center Voorhees, NJ	79.3	34.3	9.2%	2007	2009
•        Phase I - Reduced mall GLA by 470,000 sf to 654,000 sf, opening 26,000 sf of outparcel space and 50,000 sf office building; •        Phase II - Opening a mixed use town center of approximately 200,000 sf; •        Phase III - Opening 425 residential units which are expected to be constructed by our development partners and its affiliates; •        Net reduction in property GLA will be approximately 244,000 sf.

Page 23

Pennsylvania Real Estate Investment Trust

Development Property Summary as of March 31, 2008

NAME OF PROJECT LOCATION	TOTAL PROJECTED PROPERTY GLA (sq ft)(1)	PREIT’s PROJECTED SHARE OF COST	PREIT’s INVESTMENT	RETURN ON INCREMENTAL INVESTMENT	CONSTRUCTION START DATE	EXPECTED DATE OF COMPLETION	% LEASED	% OCCUPIED
OPERATING PROPERTIES WITH DEVELOPMENT ACTIVITY
POWER CENTERS		(in millions)	(in millions)
New River Valley Center (2) Christiansburg, VA	164,000	$27.7	$27.1	8.5%	2006	2008	100%	100%
•       Construction of the power center next to the existing New River Valley mall is complete; •       Best Buy, Bed Bath & Beyond, PetSmart, Staples, Shoe Carnival, Old Navy, Panera Bread, and Banfield, The Pet Hospital opened in 2007; •       Ross Dress for Less and Olive Garden opened in 1st Quarter 2008.
Sunrise Plaza(2) Forked River, NJ	274,000	39.9	35.7	6.0%	2006	2009	92%	49%
•       Opened 131,000 sf Home Depot in October 2007; •       Opening a 96,000 sf Kohls in 4th Quarter 2008 and a 20,000 sf Staples in 1st Quarter 2009; •       Balance of the property will be comprised of in-line stores and outparcels.
DEVELOPMENT PROPERTIES
POWER CENTERS
Monroe Marketplace Selinsgrove, PA	626,000	73.3	25.9	8.0%	2007	2008	59%	0%
•       Phase I - Opening approximately 492,000 sf power center anchored by Target, Giant Food Store, Kohl’s, and includes Dick’s Sporting Goods, Best Buy, Michaels, Bed Bath & Beyond, and Staples. •       Phase II - Opening the balance of the power center, containing approximately 134,000 sf of outparcel and in-line space.
MIXED USE
White Clay Point (Formerly New Garden Town Center) Landenberg, PA	496,000	69.9	39.5	8.9%	2008	2010	0%	0%
•       The planned development includes retail and other mixed uses, including a residential component, to be completed in multiple phases. Phase I consists of 496,000 sf of retail use with an expected completion date of 2010. The incremental costs and returns for the remaining phases will be determined when the development plans for these phases are finalized.
Springhills Gainesville, FL	TBD	TBD	29.7	TBD	TBD	TBD	0%	0%
•       540 acres of land were acquired in 2006. Site development is subject of litigation commenced by the Company in June 2007 following action by the Alachua County Board of Supervisors refusing to authorize the Company’s development plans.
OTHER
Pavilion at Market East Philadelphia, PA	TBD	TBD	1.5	TBD	TBD	TBD	N/A	0%
•       The Partnership’s development plans for the Pavilion at Market East are under review. The Company retains a 40% interest in the partnership.

⁽¹⁾ Includes tenants that purchased their respective land.

⁽²⁾ Sunrise Plaza and New River Valley Center are considered operating properties, and are not counted as development properties.

Page 24

Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)

	Three months ended March 31, 2008
	Consolidated		Unconsolidated		Total
Redevelopment projects with incremental GLA and/or anchor replacement	$	56,034	$	437	$	56,471
New development projects		7,298		221		7,519
Renovation with no incremental GLA		135		—		135
Tenant allowances		1,751		8		1,759
Recurring capital expenditures:
CAM expenditures		580		6		586
Non-CAM expenditures		93		6		99
Total recurring capital expenditures		673		12		685
Total	$	65,891	$	678	$	66,569

Page 25

Pennsylvania Real Estate Investment Trust

Debt Analysis as of March 31, 2008

(in thousands)

Outstanding Debt(1)
	Fixed Rate			% of Total Indebtedness		Variable Rate			% of Total Indebtedness		Total			% of Total Indebtedness
Consolidated Mortgage Notes Payable	$	1,702,969		67.7	%	$	8,000		0.3	%	$	1,710,969		68.0	%
Unconsolidated Mortgage Notes Payable		74,353		3.0	%		113,250		4.5	%		187,603		7.5	%
Exchangeable Notes		287,500		11.4	%		—		0.0	%		287,500		11.4	%
Credit Facility		—		0.0	%		330,000		13.1	%		330,000		13.1	%
TOTAL OUTSTANDING DEBT	$	2,064,822		82.1	%	$	451,250		17.9	%	$	2,516,072		100.0	%
AVERAGE INTEREST RATE		5.92	%				3.95	%				5.57	%

⁽¹⁾ Includes debt premium

Average Debt Balance
		Mortgage Debt (1)			REMIC (1) (2)			Total Mortgages			Credit Facility		Exchangeable Notes		TOTAL
Beginning Balance	12/31/2007	$	1,430,267		$	414,764		$	1,845,031		$	330,000	$	287,500	$	2,462,531
Credit Facility Borrowings, net			—			—			—			—		—		—
Cherry Hill Mall Supplemental Financing			55,000			—			55,000			—		—		55,000
One Cherry Hill Plaza Financing			8,000			—			8,000			—		—		8,000
Debt Amortization(3)			(4,547	)		(4,912	)		(9,459	)		—		—		(9,459	)
Ending Balance	3/31/2008	$	1,488,720		$	409,852		$	1,898,572		$	330,000	$	287,500	$	2,516,072
Weighted Average Balance		$	1,471,814		$	413,186		$	1,885,000		$	308,022	$	287,500	$	2,480,522

⁽¹⁾ Includes debt premium.

⁽²⁾ In connection with our merger with Crown American Realty Trust in 2003, we assumed from Crown approximately $443.8 million of a 15 property real estate mortgage investment conduit (“REMIC”) with General Electric Capital Corporation that has a final maturity date of September 10, 2025 and is secured by a portfolio of 15 properties at an interest rate of 7.43% per annum. This rate remains in effect until September 10, 2008. The loan can be prepaid without penalty beginning in July 2008. If not prepaid, the interest rate from and after September 10, 2008 will be equal to the greater of (i) 10.43% per annum, or (ii) the Treasury Rate, as defined therein, plus 3.0% per annum. The mortgage loan had a balance of $405.3 million as of March 31, 2008.

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

Debt Maturities(1)
Year	Scheduled Amortization		Debt Premium Amortization		Mortgage Balance at Maturity		Credit Facility		Exchangeable Notes		Total Debt
2008	$	17,784	$	6,795	$	624,943	$	—	$	—	$	649,522
2009		16,164		1,283		70,434		330,000		—		417,881
2010		17,780		1,175		1,412		—		—		20,367
2011		18,348		1,152		44,788		—		—		64,288
2012		15,440		416		363,346		—		287,500		666,702
2013		9,863		—		110,458		—		—		120,321
2014		9,135		—		—		—		—		9,135
Thereafter		10,024		—		557,832		—		—		567,856
	$	114,538	$	10,821	$	1,773,213	$	330,000	$	287,500	$	2,516,072

⁽¹⁾ The weighted average period to mortgage maturity is 4.18 years. Excludes debt premium.

Weighted Average Mortgage Interest Rates
	Stated Interest Rate			Marked to Market Interest Rate (GAAP)
Year	Balance	Interest Rate		Balance	Interest Rate
2008	631,617	6.65	%	631,617	4.76	%
2009	72,055	6.36	%	72,055	6.16	%
2010	1,556	7.79	%	1,556	7.79	%
2011	49,512	7.54	%	49,512	7.54	%
2012	390,492	6.06	%	390,492	5.69	%
2013	124,318	4.95	%	124,318	4.95	%
Thereafter	618,301	5.54	%	618,301	5.54	%
Total	1,887,851	6.07	%	1,887,851	5.35	%

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, 2008

(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
REMIC Properties
Chambersburg Mall	$	17,432	$	196	$	17,628	7.43	%	4.99	%	$	1,763	$	17,200	2008
Francis Scott Key Mall		30,505		344		30,849	7.43	%	4.99	%		3,085		30,099	2008
Jacksonville Mall		23,533		265		23,798	7.43	%	4.99	%		2,380		23,219	2008
Logan Valley Mall		49,680		559		50,239	7.43	%	4.99	%		5,024		49,018	2008
Lycoming Mall		30,505		344		30,849	7.43	%	4.99	%		3,084		30,099	2008
New River Valley Mall		14,817		167		14,984	7.43	%	4.99	%		1,498		14,619	2008
Nittany Mall		26,147		295		26,442	7.43	%	4.99	%		2,644		25,799	2008
North Hanover Mall		17,432		197		17,629	7.43	%	4.99	%		1,763		17,199	2008
Northeast Tower Center		15,253		172		15,425	7.43	%	4.99	%		1,542		15,049	2008
Patrick Henry Mall		44,015		495		44,510	7.43	%	4.99	%		4,451		43,428	2008
Phillipsburg Mall		26,147		295		26,442	7.43	%	4.99	%		2,644		25,799	2008
South Mall		13,074		147		13,221	7.43	%	4.99	%		1,322		12,899	2008
Uniontown Mall		20,918		236		21,154	7.43	%	4.99	%		2,115		20,639	2008
Viewmont Mall		26,147		295		26,442	7.43	%	4.99	%		2,644		25,799	2008
Wyoming Valley Mall		49,680		560		50,240	7.43	%	4.99	%		5,024		49,018	2008
Subtotal REMIC		405,285		4,567		409,852	7.43	%	4.99	%		40,983		399,883	2008
Crossroads Mall		12,707		48		12,755	7.39	%	5.75	%		1,191		12,647	2008
Exton Square Mall		94,097		1,072		95,169	6.95	%	5.00	%		8,102		93,034	2008
Whitehall Mall		6,278		—		6,278	6.77	%	6.77	%		641		6,129	2008
Palmer Park Mall		16,112		—		16,112	6.77	%	6.77	%		1,661		15,674	2009
Red Rose Commons		12,758		—		12,758	7.66	%	7.66	%		1,220		12,425	2009
Valley View Mall		35,185		177		35,362	6.15	%	5.75	%		2,773		34,335	2009
Springfield Park		1,556		—		1,556	7.79	%	7.79	%		203		1,412	2010
Metroplex Shopping Center		30,554		—		30,554	7.25	%	7.25	%		2,681		28,785	2011
The Court at Oxford Valley		18,958		—		18,958	8.02	%	8.02	%		2,319		16,003	2011
Beaver Valley Mall		45,126		—		45,126	7.36	%	7.36	%		3,972		42,266	2012
Capital City Mall		50,832		3,267		54,099	7.61	%	5.50	%		4,603		47,898	2012
Cherry Hill Mall		193,133		—		193,133	5.42	%	5.42	%		13,510		177,689	2012
Cherry Hill Mall Supplemental Loan		55,000		—		55,000	5.51	%	5.51	%		3,030		53,003	2012
Cumberland Mall Loan #1		42,152		1,590		43,742	6.50	%	5.40	%		3,413		38,782	2012
Pavilion East Associates(2)		4,249		—		4,249	5.90	%	7.71	%		252		3,708	2012
Dartmouth Mall		64,821		—		64,821	4.95	%	4.95	%		4,484		57,594	2013
Moorestown Mall		59,497		—		59,497	4.95	%	4.95	%		4,115		52,863	2013
Magnolia Mall		63,587		—		63,587	5.33	%	5.33	%		4,413		54,965	2015
Willow Grove Park		155,111		—		155,111	5.65	%	5.65	%		11,083		133,548	2015
Valley Mall		89,915		—		89,915	5.49	%	5.49	%		5,014		78,835	2016
Woodland Mall		156,500		—		156,500	5.58	%	5.58	%		8,397		140,484	2016
Cumberland Mall Loan #2		3,188		—		3,188	5.00	%	5.00	%		206		—	2017
The Mall at Prince Georges		150,000		—		150,000	5.51	%	5.51	%		8,270		150,000	2017
Total Fixed Rate Mortgage Debt		1,766,601		10,721		1,777,322	6.24	%	5.47	%		136,536		1,651,962
Variable Rate Mortgage Debt
Lehigh Valley Mall(3)		75,000		—		75,000	3.38	%	3.38	%		4,190		75,000	2008
Springfield Mall(4)		38,250		—		38,250	3.80	%	3.80	%		1,455		38,250	2008
One Cherry Hill Plaza		8,000		—		8,000	4.39	%	4.39	%		351		8,000	2009
Total Variable Rate Mortgage Debt		121,250		—		121,250	3.58	%	3.58	%		5,996		121,250
Total Mortgage Debt	$	1,887,851	$	10,721	$	1,898,572	6.07	%	5.35	%	$	142,532	$	1,773,212
CONSOLIDATED MORTGAGES	$	1,700,248	$	10,721	$	1,710,969	6.18	%	5.38	%	$	129,571	$	1,591,500
UNCONSOLIDATED MORTGAGES		187,603		—		187,603	5.06	%	5.10	%		12,961		181,712
EXCHANGEABLE NOTES		287,500		—		287,500	4.00	%	4.00	%		11,500		287,500
CREDIT FACILITY		330,000		—		330,000	4.08	%	4.08	%		13,474		—
Total	$	2,505,351	$	10,721	$	2,516,072	5.57	%	5.03	%	$	156,006	$	2,060,712

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

⁽³⁾ The mortgage for this property has been swapped to a fixed interest rate of 7.71%.

⁽³⁾ Property has three, one-year renewal options. The first option was exercised June 1, 2007 for the period August 10, 2007 to August 9, 2008.

⁽⁴⁾ Property has three, one-year renewal options. The first option was exercised in December 2007.

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Pennsylvania Real Estate Investment Trust

Shareholder Information

Ten Largest Institutional Shareholders:	Common Shares Held(1)
Goldman Sachs Asset Management LP (US)	3,691,967
Vanguard Group, Inc.	2,718,197
Barclays Global Investors, NA	2,683,968
ING Clarion Real Estate Securities	2,251,353
RREEF America LLC	1,875,041
Perkins, Wolf, McDonnell & Co.	1,481,880
State Street Global Advisors (U.S.)	1,292,123
ABN AMRO Asset Management, Inc.	768,800
J.P. Morgan Investment Management Inc. (US)	607,869
Neuberger Berman, LLC	580,749
TOTAL of Ten Largest Institutional:	17,951,947
TOTAL of all Institutional Holders:	30,643,087
Ten Largest as % of Total Institutional:	58.6	%

⁽¹⁾ Based on 13F and 13G filings as of 12/31/07 or most recent filings.

Breakdown of Share & Unit Ownership: Shares Held	Most Recent	% of Outstanding		December 31, 2007
Institutional(1)	30,643,087	74.0	%	29,753,729
Retail(2)	6,611,154	16.0	%	6,629,028
Insiders(3)	4,147,196	10.0	%	4,965,503
TOTAL	41,401,437	100.0	%	41,348,260

⁽¹⁾ Based on 13F and 13G filings as of 12/31/07 or most recent filings.

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

⁽³⁾ Insider holdings as of April 1, 2008 (Shares and O.P. Units only). Excludes 143,250 exercisable options. See proxy statement dated April 18, 2008 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 properties and extraordinary items (computed in accordance with GAAP); plus real estate depreciation; plus or minus adjustments for unconsolidated partnerships to reflect funds from operations on the same basis. We compute Funds From Operations by taking the amount determined pursuant to the NAREIT definition and subtracting dividends on preferred shares (“FFO”). Funds From Operations is a commonly used measure of operating performance and profitability in the REIT industry, and we use FFO as a supplemental non-GAAP measure to compare our Company’s performance to that of our industry peers. Similarly, FFO per diluted share is a measure that is useful because it reflects the dilutive impact of outstanding convertible securities. In addition, we use FFO and FFO per diluted share as a performance measure for determining bonus amounts earned under certain of our performance-based executive compensation programs. The Company computes FFO in accordance with standards established by NAREIT, less dividends on preferred shares for periods during which the Company had preferred shares outstanding, which may not be comparable to 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.

Page 29