Pennsylvania Real Estate Investment Trust 8K Results of Operations and Financial Condition | PRET 9 Aug 10

Exhibit 99.1

Pennsylvania Real Estate Investment Trust^®

LOGO

Supplemental Financial and Operating Information

Quarter Ended June 30, 2010

www.preit.com

NYSE: PEI

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

June 30, 2010

Table of Contents


*Introduction*
Company Information		1
Press Release Announcements		2
Market Capitalization and Capital Resources		3
*Operating Results*
Statement of Operations-Proportionate Consolidation Method - Three Months Ended June 30, 2010 and June 30, 2009		4
Statement of Operations-Proportionate Consolidation Method - Six Months Ended June 30, 2010 and June 30, 2009		5
Net Operating Income - Three Months Ended June 30, 2010 and June 30, 2009		6
Net Operating Income - Six Months Ended June 30, 2010 and June 30, 2009		7
Computation of Earnings Per Share		8
Funds From Operations and Funds Available for Distribution		9
*Operating Statistics*
Leasing Activity Summary		10
Summarized Rent Per Square Foot and Occupancy Percentages		11
Mall Sales and Rent Per Square Foot		12
Mall Occupancy - Owned GLA		13
Strip and Power Center Rent Per Square Foot and Occupancy Percentages		14
Top Twenty Tenants		15
Lease Expirations		16
Gross Leasable Area Occupancy Summary		17
Property Information		18
*Balance Sheet*
Balance Sheet - Proportionate Consolidation Method		21
Balance Sheet - Property Type		22
Investment in Real Estate		23
Property Redevelopment Summary		25
Capital Expenditures		26
Debt Analysis		27
Debt Schedule		28
Selected Debt Ratios		29
Shareholder Information		30
Definitions		31

FORWARD-LOOKING STATEMENTS

This Quarterly Supplemental and Operating Information contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect PREIT’s current views about future events and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. More specifically, PREIT’s business might be affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: PREIT’s substantial debt and high leverage ratio; constraining leverage, interest and tangible net worth covenants under the 2010 Credit Facility, as well as capital application provisions and limits on PREIT’s ability to pay distributions on our common shares; PREIT’s ability to refinance its existing indebtedness when it matures on favorable terms, or at all; PREIT’s ability to raise capital, including through the issuance of equity or equity-related securities if market conditions are favorable, through joint ventures or other partnerships, through sales of properties, or through other actions; PREIT’s short- and long-term liquidity position; the effects on PREIT of dislocations and liquidity disruptions in the capital and credit markets; the current economic downturn and its effect on employment, consumer confidence and consumer spending; tenant business and solvency and leasing decisions and the value and potential impairment of PREIT’s properties; and PREIT’s ability to maintain and increase property occupancy, sales and rental rates, including at recently redeveloped properties. Additionally, there can be no assurance that PREIT’s actual results will not differ significantly from the estimates set forth in press releases or other disclosures, or that PREIT’s returns on its developments, redevelopments or acquisitions will be consistent with the estimates outlined in press releases or other disclosures. Investors are also directed to consider the risks and uncertainties discussed in documents PREIT has filed with the Securities and Exchange Commission and, in particular, PREIT’s Annual Report on Form 10-K for the year ended December 31, 2009. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

Pennsylvania Real Estate Investment Trust

Company Information

Background

Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls and power centers. As of June 30, 2010, the Company’s 54 properties include 38 shopping malls, 13 strip and power centers, and three development properties. These properties are located in 13 states in the eastern half of the United States, primarily in the Mid-Atlantic region. The operating retail properties have a total of approximately 34.7 million square feet. PREIT is headquartered in Philadelphia, Pennsylvania.

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

Nurit Yaron, Vice President - Investor Relations

200 South Broad Street

Philadelphia, PA 19102

Telephone: (215) 875-0735

Fax: (215) 546-2504

Email: yaronn@preit.com

Reporting Calendar


Third Quarter 2010		November 4, 2010

Research Coverage


Company	Analyst	Phone Number

Bank of America/Merrill Lynch	Craig Schmidt	(646) 855-3640
	Jeffery Spector	(646) 855-1363
	Lindsay Schroll	(646) 855-1829

Barclays Capital	Ross Smotrich	(212) 526-2306
	Ryan Bennett	(212) 526-5309

Citi Investment Research	Michael Bilerman	(212) 816-1383
	Quentin Velleley	(212) 816-6981

Green Street Advisors	Jim Sullivan	(949) 640-8780
	Cedrik Lachance	(949) 640-8780

JP Morgan	Michael W. Mueller	(212) 622-6689
	Sarah King	(212) 622-5670

Keefe, Bruyette, & Woods	Ben Yang	(415) 591-1631

Macquarie Capital	David Wigginton	(212) 231-6380

Stifel Nicolaus	Nathan Isbee	(443) 224-1346

Page 1

Pennsylvania Real Estate Investment Trust

Press Release Announcements

Dividends and Distributions:

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

April 30, 2010 - PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.15 per common share.

Financing activities:

May 10, 2010 - PREIT announced the underwriters of its previously disclosed public offering exercised, in full, their overallotment option to purchase an additional 1,350,000 common shares of beneficial interest.

May 4, 2010 - PREIT announced that is has priced an underwritten public offering of 9,000,000 newly issued common shares of beneficial interest at $16.25 per share.

May 3, 2010 - PREIT announced that has commenced an underwritten public offering of 8,000,000 common shares of beneficial interest.

Other activities:

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

June 8, 2010 - PREIT announced that it will present at REITWeek 2010 in Chicago, IL.

June 3, 2010 - PREIT announced the results of the annual meeting of shareholders.

May 11, 2010 - PREIT announced it will ring the Closing Bell ™ at the New York Stock Exchange in celebration of its 50th anniversary.

May 10, 2010 - PREIT announced it has updated its guidance for 2010 Funds From Operations and net loss per diluted share.

April 15, 2010 - PREIT scheduled its First Quarter 2010 earnings call for Thursday, April 29, 2010.

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

Page 2

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources


	Quarter Ended June 30,						Year Ended December 31,
	2010			2009			2009			2008
TRADING INFORMATION
High Price	$	17.35		$	7.86		$	9.13		$	29.70
Low Price	$	11.85		$	3.45		$	2.20		$	2.21
Average Daily Trading Volume		900,865			1,013,943			824,654			768,718

MARKET CAPITALIZATION (in thousands, except per share amounts)
EQUITY CAPITALIZATION
Common Shares Outstanding		55,318			43,273			44,615			39,468
OP Units Outstanding		2,329			2,329			2,329			2,201

TOTAL Shares and OP Units Outstanding		57,647			45,602			46,944			41,669


Market Price (closing price at end of period)	$	12.22		$	5.00		$	8.46		$	7.45

Equity Market Capitalization - Shares and OP Units	$	704,440		$	228,009		$	397,148		$	310,437

DEBT CAPITALIZATION⁽¹⁾
Secured Debt Balance⁽²⁾		2,389,267			1,961,752			1,956,193			1,940,334
Unsecured Debt Balance⁽³^{) (4)}		136,900			829,400			792,900			811,500

Debt Capitalization		2,526,167			2,791,152			2,749,093			2,751,834

TOTAL MARKET CAPITALIZATION	$	3,230,607		$	3,019,161		$	3,146,241		$	3,062,271


*Equity Capitalization/Total Market Capitalization*		21.8	%		7.6	%		12.6	%		10.1	%
*Debt Capitalization/Total Market Capitalization*		78.2	%		92.4	%		87.4	%		89.9	%
*Unsecured Debt Balance/Total Debt*		5.4	%		29.7	%		28.8	%		29.5	%

DISTRIBUTIONS PER COMMON SHARE

Ordinary Income		⁽⁵	⁾	$	0.150		$	0.630		$	2.254
Capital Gain		⁽⁵	⁾		—			0.110			—
Return of Capital/Non-Taxable		⁽⁵	⁾		—			—			0.026

Distributions per share	$	0.150		$	0.150		$	0.740		$	2.280


Annualized Dividend Yield⁽⁶⁾		4.9	%		12.0	%		8.7	%		30.6	%

CAPITAL RESOURCES

Cash and Cash Equivalents	$	33,157		$	35,206		$	77,147		$	12,711

Revolving Credit Facility		150,000			500,000			500,000			500,000
Amount Outstanding		—			(445,000	)		(486,000	)		(400,000	)
Letters of Credit		(1,534	)		(3,030	)		(3,030	)		(6,428	)

Available Credit Facility⁽⁷⁾		148,466			51,970			10,970			93,572

TOTAL	$	181,623		$	87,176		$	88,117		$	106,283


Shelf Registration	$	831,812		$	1,000,000		$	1,000,000		$	1,000,000

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

⁽²⁾	The secured debt balance includes $413,500 in Term Loans as of June 30, 2010.

⁽³⁾	The unsecured debt balance includes $170,000 in senior unsecured 2008 Term Loan as of December 31, 2009, June 30, 2009 and December 31, 2008, respectively, and Credit Facility balances of $486,000 as of December 31, 2009, $445,000 as of June 30, 2009, and $400,000 as of December 31, 2008.

⁽⁴⁾	The unsecured debt balance includes exchangeable notes of $136,900 as of June 30, 2010 and December 31, 2009, respectively, $214,400 as of June 30, 2009 and $241,500 as of December 31, 2008.

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

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

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

Page 3

Pennsylvania Real Estate Investment Trust

Statement of Operations - Three Months Ended June 30, 2010 and 2009

Proportionate Consolidation Method

(in thousands)


	Three months ended June 30, 2010											Three months ended June 30, 2009
	GAAP			Share of unconsolidated partnerships⁽¹⁾			Discontinued operations		Total			GAAP			Share of unconsolidated partnerships⁽¹⁾			Discontinued operations			Total
REVENUE:
Base rent	$	73,631		$	6,528		$	—	$	80,159		$	73,105		$	6,134		$	1,155		$	80,394
Expense reimbursements		32,709			2,694			—		35,403			33,684			2,693			311			36,688
Percentage rent		641			14			—		655			626			22			—			648
Lease termination revenue		373			275			—		648			938			—			—			938
Other real estate revenue		3,501			286			—		3,787			3,463			436			28			3,927
Interest and other income		598			—			—		598			528			—			—			528

Total revenue		111,453			9,797			—		121,250			112,344			9,285			1,494			123,123


EXPENSES:
Operating expenses:
CAM and real estate taxes		(35,511	)		(2,063	)		—		(37,574	)		(33,563	)		(1,966	)		(322	)		(35,851	)
Utilities		(6,166	)		(219	)		—		(6,385	)		(5,913	)		(209	)		(10	)		(6,132	)
Other operating expenses		(6,373	)		(612	)		—		(6,985	)		(6,694	)		(671	)		(22	)		(7,387	)

Total operating expenses		(48,050	)		(2,894	)		—		(50,944	)		(46,170	)		(2,846	)		(354	)		(49,370	)

Depreciation and amortization		(41,598	)		(2,102	)		—		(43,700	)		(41,085	)		(2,018	)		(395	)		(43,498	)
Other expenses:
General and administrative expenses		(9,617	)		—			—		(9,617	)		(9,498	)		—			—			(9,498	)
Impairment of assets		—			—			—		—			(70	)		—			—			(70	)
Abandoned project costs, income taxes and other expenses		(161	)		—			—		(161	)		(80	)		—			—			(80	)

Total other expenses		(9,778	)		—			—		(9,778	)		(9,648	)		—			—			(9,648	)

Interest expense, net⁽²⁾		(38,625	)		(1,853	)		—		(40,478	)		(33,249	)		(1,762	)		—			(35,011	)
Gain on extinguishment of debt		—			—			—		—			8,532			—			—			8,532

Total expenses		(138,051	)		(6,849	)		—		(144,900	)		(121,620	)		(6,626	)		(749	)		(128,995	)

Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate		(26,598	)		2,948			—		(23,650	)		(9,276	)		2,659			745			(5,872	)
Equity in income of partnerships		2,948			(2,948	)		—		—			2,659			(2,659	)		—			—
Gains on sales of real estate		—			—			—		—			1,654			—			—			1,654

Loss from continuing operations		(23,650	)		—			—		(23,650	)		(4,963	)		—			745			(4,218	)
Discontinued operations:
Operating results from discontinued operations		—			—			—		—			745			—			(745	)		—

Income from discontinued operations		—			—			—		—			745			—			(745	)		—

Net loss		(23,650	)		—			—		(23,650	)		(4,218	)		—			—			(4,218	)
Less: net loss attributable to noncontrolling interests		964			—			—		964			197			—			—			197

Net loss attributable to Pennsylvania Real Estate Investment Trust	$	(22,686	)	$	—		$	—	$	(22,686	)	$	(4,021	)	$	—		$	—		$	(4,021	)

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

⁽²⁾	Net of capitalized interest expense of $927 and $1,428 for the three months ended June 30, 2010 and June 30, 2009, respectively.

Page 4

Pennsylvania Real Estate Investment Trust

Income Statement - Six Months Ended June 30, 2010 and 2009

Proportionate Consolidation Method

(in thousands)


	Six Months Ended June 30, 2010											Six Months Ended June 30, 2009
	GAAP			Share of unconsolidated partnerships⁽¹⁾			Discontinued operations		Total			GAAP			Share of unconsolidated partnerships⁽¹⁾			Discontinued operations			Total
REVENUE:
Base rent	$	148,085		$	12,764		$	—	$	160,849		$	145,121		$	12,419		$	2,324		$	159,864
Expense reimbursements		67,521			5,406			—		72,927			67,859			5,195			650			73,704
Percentage rent		1,525			27			—		1,552			1,461			33			—			1,494
Lease termination revenue		2,181			275			—		2,456			1,336			120			—			1,456
Other real estate revenue		6,466			563			—		7,029			6,715			804			54			7,573
Interest and other income		1,326			—			—		1,326			1,230			—			—			1,230

Total revenue		227,104			19,035			—		246,139			223,722			18,571			3,028			245,321


EXPENSES:
Operating expenses:
CAM and real estate taxes		(72,813	)		(4,407	)		—		(77,220	)		(68,179	)		(4,073	)		(696	)		(72,948	)
Utilities		(12,469	)		(417	)		—		(12,886	)		(11,796	)		(424	)		(20	)		(12,240	)
Other operating expenses		(12,195	)		(1,175	)		—		(13,370	)		(12,461	)		(1,294	)		(19	)		(13,774	)

Total operating expenses		(97,477	)		(5,999	)		—		(103,476	)		(92,436	)		(5,791	)		(735	)		(98,962	)

Depreciation and amortization		(83,605	)		(4,561	)				(88,166	)		(80,086	)		(4,073	)		(789	)		(84,948	)
Other expenses:
General and administrative expenses		(19,303	)		—			—		(19,303	)		(18,853	)		—			—			(18,853	)
Impairment of assets		—			—			—		—			(70	)		—			—			(70	)
Abandoned project costs, income taxes and other expenses		(455	)		—			—		(455	)		(399	)		—			—			(399	)

Total other expenses		(19,758	)��		—			—		(19,758	)		(19,322	)		—			—			(19,322	)

Interest expense, net⁽²⁾		(73,456	)		(3,437	)				(76,893	)		(65,758	)		(3,530	)		—			(69,288	)
Gain on extinguishment of debt		—			—			—		—			9,804			—			—			9,804

Total expenses		(274,296	)		(13,997	)		—		(288,293	)		(247,798	)		(13,394	)		(1,524	)		(262,716	)

Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate		(47,192	)		5,038			—		(42,154	)		(24,076	)		5,177			1,504			(17,395	)
Equity in income of partnerships		5,038			(5,038	)		—		—			5,177			(5,177	)		—			—
Gains on sales of real estate		—			—			—		—			1,654			—			—			1,654

Loss from continuing operations		(42,154	)		—			—		(42,154	)		(17,245	)		—			1,504			(15,741	)
Discontinued operations
Operating results from discontinued operations		—			—			—		—			1,504			—			(1,504	)		—

Income from discontinued operations		—			—			—		—			1,504			—			(1,504	)		—

Net loss		(42,154	)		—			—		(42,154	)		(15,741	)		—			—			(15,741	)
Less: net loss attributable to noncontrolling interests		1,842			—			—		1,842			738			—			—			738

Net loss attributable to Pennsylvania Real Estate Investment Trust	$	(40,312	)	$	—		$	—	$	(40,312	)	$	(15,003	)	$	—		$	—		$	(15,003	)

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

⁽²⁾	Net of capitalized interest expense of $1,455 and $3,240 for the six months ended June 30, 2010 and June 30, 2009, respectively.

Page 5

Pennsylvania Real Estate Investment Trust

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

(in thousands)


	Three months ended June 30, 2010												Three months ended June 30, 2009
SAME STORE RETAIL/NEW/OTHER	Same			New			Other			Total			Same			New		Other			Total

Real estate revenue:
Base rent	$	79,536		$	229		$	394		$	80,159		$	78,802		$	—	$	1,592		$	80,394
Expense reimbursements		35,358			30			15			35,403			36,367			—		321			36,688
Percentage rent		655			—			—			655			648			—		—			648
Lease termination revenue		648			—			—			648			938			—		—			938
Other real estate revenue		3,670			—			117			3,787			3,719			—		208			3,927

TOTAL REAL ESTATE REVENUE		119,867			259			526			120,652			120,474			—		2,121			122,595


Operating expenses:
CAM and real estate taxes		(37,173	)		(39	)		(362	)		(37,574	)		(35,170	)		—		(681	)		(35,851	)
Utilities		(6,385	)		—			—			(6,385	)		(6,122	)		—		(10	)		(6,132	)
Other operating expenses		(6,947	)		—			(38	)		(6,985	)		(7,289	)		—		(98	)		(7,387	)

TOTAL OPERATING EXPENSES		(50,505	)		(39	)		(400	)		(50,944	)		(48,581	)		—		(789	)		(49,370	)

NET OPERATING INCOME	$	69,362		$	220		$	126		$	69,708		$	71,893		$	—	$	1,332		$	73,225


	Three months ended June 30, 2010									Three months ended June 30, 2009
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total

Real estate revenue:
Base rent	$	71,410		$	8,126		$	79,536		$	71,018		$	7,784		$	78,802
Expense reimbursements		33,674			1,684			35,358			34,782			1,585			36,367
Percentage rent		646			10			656			626			22			648
Lease termination revenue		648			—			648			938			—			938
Other real estate revenue		3,605			64			3,669			3,618			101			3,719

TOTAL REAL ESTATE REVENUE		109,983			9,884			119,867			110,982			9,492			120,474


Operating expenses:
CAM and real estate taxes		(35,324	)		(1,849	)		(37,173	)		(33,506	)		(1,664	)		(35,170	)
Utilities		(6,327	)		(58	)		(6,385	)		(6,063	)		(59	)		(6,122	)
Other operating expenses		(6,806	)		(141	)		(6,947	)		(7,039	)		(250	)		(7,289	)

TOTAL OPERATING EXPENSES		(48,457	)		(2,048	)		(50,505	)		(46,608	)		(1,973	)		(48,581	)

NET OPERATING INCOME	$	61,526		$	7,836		$	69,362		$	64,374		$	7,519		$	71,893

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

Page 6

Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Six Months Ended June 30, 2010 and 2009

(in thousands)


	Six Months Ended June 30, 2010												Six Months Ended June 30, 2009
SAME STORE RETAIL/NEW/OTHER	Same			New			Other			Total			Same			New		Other			Total

Real estate revenue:
Base rent	$	159,602		$	459		$	788		$	160,849		$	156,667		$	—	$	3,197		$	159,864
Expense reimbursements		72,820			80			27			72,927			73,029			—		675			73,704
Percentage rent		1,552			—			—			1,552			1,494			—		—			1,494
Lease termination revenue		2,456			—			—			2,456			1,456			—		—			1,456
Other real estate revenue		6,791			—			238			7,029			7,148			—		425			7,573

TOTAL REAL ESTATE REVENUE		243,221			539			1,053			244,813			239,794			—		4,297			244,091


Operating expenses:
CAM and real estate taxes		(76,439	)		(99	)		(682	)		(77,220	)		(71,531	)		—		(1,417	)		(72,948	)
Utilities		(12,886	)		—			—			(12,886	)		(12,221	)		—		(19	)		(12,240	)
Other operating expenses		(13,285	)		(1	)		(84	)		(13,370	)		(13,601	)		—		(173	)		(13,774	)

TOTAL OPERATING EXPENSES		(102,610	)		(100	)		(766	)		(103,476	)		(97,353	)		—		(1,609	)		(98,962	)

NET OPERATING INCOME	$	140,611		$	439		$	287		$	141,337		$	142,441		$	—	$	2,688		$	145,129



	Six Months Ended June 30, 2010									Six Months Ended June 30, 2009
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total

Real estate revenue:
Base rent	$	143,674		$	15,928		$	159,602		$	141,073		$	15,594		$	156,667
Expense reimbursements		69,044			3,776			72,820			69,539			3,490			73,029
Percentage rent		1,560			(8	)		1,552			1,457			37			1,494
Lease termination revenue		2,456			—			2,456			1,456			—			1,456
Other real estate revenue		6,676			115			6,791			7,027			121			7,148

TOTAL REAL ESTATE REVENUE		223,410			19,811			243,221			220,552			19,242			239,794


Operating expenses:
CAM and real estate taxes		(72,272	)		(4,167	)		(76,439	)		(67,782	)		(3,749	)		(71,531	)
Utilities		(12,781	)		(105	)		(12,886	)		(12,107	)		(114	)		(12,221	)
Other operating expenses		(12,900	)		(385	)		(13,285	)		(13,127	)		(474	)		(13,601	)

TOTAL OPERATING EXPENSES		(97,953	)		(4,657	)		(102,610	)		(93,016	)		(4,337	)		(97,353	)

NET OPERATING INCOME	$	125,457		$	15,154		$	140,611		$	127,536		$	14,905		$	142,441

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

Page 7

Pennsylvania Real Estate Investment Trust

Computation of

Earnings Per Share

(in thousands, except per share amounts)


	Three months ended June 30,						Six months ended June 30,
	2010			2009			2010			2009

Loss from continuing operations	$	(23,650	)	$	(4,963	)	$	(42,154	)	$	(17,245	)
Noncontrolling interest in continuing operations		964			185			1,842			695
Dividends on unvested restricted shares		(168	)		(378	)		(266	)		(473	)

Loss from continuing operations used to calculate earnings per share - basic and diluted	$	(22,854	)	$	(5,156	)	$	(40,578	)	$	(17,023	)


Income from discontinued operations	$	—		$	745		$	—		$	1,504
Noncontrolling interest in discontinued operations		—			12			—			43

Income from discontinued operations used to calculate earnings per share - basic and diluted	$	—		$	757		$	—		$	1,547


Basic loss per share
Loss from continuing operations	$	(0.45	)	$	(0.13	)	$	(0.86	)	$	(0.44	)
Income from discontinued operations		—			0.02			—			0.04

	$	(0.45	)	$	(0.11	)	$	(0.86	)	$	(0.40	)


Diluted loss per share
Loss from continuing operations	$	(0.45	)	$	(0.13	)	$	(0.86	)	$	(0.44	)
Income from discontinued operations		—			0.02			—			0.04

	$	(0.45	)	$	(0.11	)	$	(0.86	)	$	(0.40	)


Weighted average of common shares outstanding		51,439			40,269			48,038			39,900

Weighted average of unvested restricted shares		(1,122	)		(1,072	)		(1,025	)		(799	)


Weighted average shares outstanding - basic		50,317			39,197			47,013			39,101

Weighted average effect of common share equivalents⁽¹⁾		—			—			—			—


Total weighted average shares outstanding - diluted		50,317			39,197			47,013			39,101

⁽¹⁾	For all periods presented, there are net losses, so the effect of common share equivalents is excluded from the calculation of diluted loss per share for these periods because it would be antidilutive.

Page 8

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)


	Three months ended June 30,						Six months ended June 30,							Year Ended December 31,
	2010			2009			2010			2009				2009
FUNDS FROM OPERATIONS (FFO)
Net loss	$	(23,650	)	$	(4,218	)	$	(42,154	)	$	(15,741	)		$	(90,091	)
Gains on sales of interests in real estate		—			(923	)		—			(923	)			(923	)
Gains on sales of discontinued operations		—			—			—			—				(9,503	)
Depreciation and amortization:⁽¹⁾
Wholly owned and consolidated partnerships		41,220			40,539			82,789			78,930				164,284
Unconsolidated partnerships		2,102			2,018			4,561			4,073				8,144
Discontinued operations		—			395			—			789				1,176

FFO	$	19,672		$	37,811		$	45,196		$	67,128			$	73,087

Accelerated amortization of deferred financing costs related to equity offering		2,258			—			2,258			—				—
Impairment of assets		—			70			—			70				74,254
Gain on extinguishment of debt		—			(8,532	)		—			(9,804	)			(27,047	)

FFO AS ADJUSTED	$	21,930		$	29,349		$	47,454		$	57,394			$	120,294

FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	19,672		$	37,811		$	45,196		$	67,128			$	73,087
Adjustments:
Straight line rent		(356	)		(434	)		(878	)		(763	)			(1,276	)
Recurring capital expenditures		(1,619	)		(3,457	)		(1,781	)		(3,792	)			(16,495	)
Tenant allowances		(3,407	)		(3,147	)		(5,371	)		(5,731	)			(11,312	)
Capitalized leasing costs		(1,256	)		(1,051	)		(2,141	)		(2,150	)			(4,341	)
Amortization of mortgage loan premium		(300	)		(334	)		(586	)		(655	)	��		(1,283	)
Amortization of above- and below-market lease intangibles		(6	)		(536	)		(13	)		(520	)			(394	)
Amortization of exchangeable notes debt discount		461			739			915			1,493				2,817
Impairment of assets		—			70			—			70				74,254
Gain on extinguishment of debt		—			(8,532	)		—			(9,804	)			(27,047	)

FAD	$	13,189		$	21,129		$	35,341		$	45,276			$	88,010

Weighted average of common shares outstanding		50,317			39,197			47,013			39,101				40,953
Weighted average of OP Units outstanding		2,329			2,219			2,329			2,207				2,268
Weighted average effect of common share equivalents		587			—			349			—				12

Total weighted average shares outstanding, including OP Units		53,233			41,416			49,691			41,308				43,233

Net loss per diluted share	$	(0.45	)	$	(0.11	)	$	(0.86	)	$	(0.40	)		$	(2.11	)
FFO per diluted share	$	0.37		$	0.91		$	0.91		$	1.63			$	1.69
FFO per diluted share as adjusted	$	0.41		$	0.71		$	0.95		$	1.39			$	2.78
FAD per diluted share	$	0.25		$	0.51		$	0.71		$	1.10			$	2.04
Dividend per common share	$	0.15		$	0.15		$	0.30		$	0.44			$	0.74
PAYOUT RATIOS
Payout Ratio of FFO		61.5	%⁽²⁾												43.8	%
Payout Ratio of FFO as adjusted		25.6	%⁽²⁾												26.6	%
Payout Ratio of FAD		36.3	%⁽²⁾												36.4	%

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

⁽²⁾	Twelve months ended June 30, 2010.

Page 9

Pennsylvania Real Estate Investment Trust

2010 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		13	37,635	$	26.45	$	25.58	$	(0.87	)	-3.3	%	$	0.67
2nd Quarter		25	73,166		22.34		24.04		1.70		7.6	%		1.90

Total/Average		38	110,801	$	23.74	$	24.56	$	0.83		3.5	%	$	1.48

New Leases - Previously Vacant Space:⁽²⁾

1st Quarter⁽³⁾		14	83,459		N/A	$	17.42	$	17.42		N/A		$	0.24
2nd Quarter		36	156,027		N/A		16.64		16.64		N/A			1.13

Total/Average		50	239,486		N/A	$	16.91	$	16.91		N/A		$	0.82

Renewal:⁽⁴⁾

1st Quarter		132	489,130	$	22.09	$	20.56	$	(1.53	)	-6.9	%	$	0.02
2nd Quarter		97	386,648		20.10		19.79		(0.31	)	-1.5	%		0.24

Total/Average		229	875,778	$	21.21	$	20.22	$	(0.99	)	-4.7	%	$	0.12

Anchor Renewal:

1st Quarter		6	398,532	$	3.12	$	3.08	$	(0.04	)	-1.3	%	$	—
2nd Quarter		7	789,883		2.27		2.27		—		0.0	%		—

Total/Average	��	13	1,188,415	$	2.56	$	2.54	$	(0.01	)	-0.4	%	$	—

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

⁽²⁾	This category includes newly constructed and recommissioned space.

⁽³⁾	Includes two tenants which are large format tenants with lower than average base rent. Excluding these two tenants, average base rent is $27.25 per square foot.

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

Page 10

Pennsylvania Real Estate Investment Trust

Summarized Rent Per Square Foot and Occupancy Percentages


	June 30, 2010						June 30, 2009						Change
	Avg Base Rent		Occupancy				Avg Base Rent		Occupancy				Avg Base Rent		Occupancy
	Avg Base Rent		Total		Non-Anchor		Avg Base Rent		Total		Non-Anchor		Avg Base Rent		Total		Non-Anchor
Enclosed Malls weighted average⁽¹⁾	$	32.71	89.0	%	83.6	%	$	31.88	88.3	%	83.7	%	2.6	%	0.7	%	-0.1	%
Strip and Power Centers weighted average	$	16.00	96.1	%	94.0	%	$	15.97	91.6	%	87.6	%	0.2	%	4.5	%	6.4	%
Retail Portfolio weighted average	$	28.11	90.0	%	85.3	%	$	28.12	88.8	%	84.4	%	0.0	%	1.2	%	0.9	%

Consolidated Properties	$	29.51	89.4	%	84.0	%	$	29.32	88.5	%	83.8	%	0.7	%	0.9	%	0.2	%
Unconsolidated Properties	$	23.15	94.6	%	92.8	%	$	23.38	90.8	%	87.4	%	-1.0	%	3.8	%	5.4	%
Same Properties	$	28.16	90.0	%	85.3	%	$	28.12	88.8	%	84.4	%	0.1	%	1.2	%	0.9	%
New Properties	$	19.75	100.0	%	100.0	%		N/A	N/A		N/A		N/A		N/A		N/A

⁽¹⁾	Average base rent for tenants that lease individual spaces of 10,000 square feet or less and pay fixed rent. Average base rent for tenants greater than 10,000 square feet that pay fixed rent was $14.55/sq ft as of June 30, 2010 and $14.63/sq ft as of June 30, 2009.

Page 11

Pennsylvania Real Estate Investment Trust

Mall Sales and Rent Per Square Foot


			June 30, 2010						June 30, 2009						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	27.2	%
Cherry Hill Mall			$	46.53	$	523	14.7	%	$	44.97	$	411	17.3	%	3.5	%	27.3	%	-2.6	%
Lehigh Valley Mall				44.60		522	12.6	%		43.16		465	13.4	%	3.3	%	12.3	%	-0.8	%
Jacksonville Mall				33.04		496	10.0	%		31.53		478	9.8	%	4.8	%	3.8	%	0.2	%
Woodland Mall				44.28		472	13.0	%		42.67		451	15.2	%	3.8	%	4.7	%	-2.2	%
Patrick Henry Mall				38.91		407	13.3	%		37.44		427	12.5	%	3.9	%	-4.7	%	0.8	%
Sales per square foot between $350 - $400	29.8	%
Willow Grove Park^{(3) (4)}				43.58		384	16.7	%		42.09		381	16.3	%	3.5	%	0.8	%	0.4	%
The Mall at Prince Georges				36.51		369	15.3	%		35.49		383	15.0	%	2.9	%	-3.7	%	0.3	%
Moorestown Mall				36.73		366	15.4	%		36.18		413	14.7	%	1.5	%	-11.4	%	0.7	%
Viewmont Mall				29.96		365	13.1	%		30.88		357	13.4	%	-3.0	%	2.2	%	-0.3	%
Wyoming Valley Mall				31.51		362	12.8	%		30.97		352	12.6	%	1.8	%	2.8	%	0.2	%
Valley View Mall				30.49		360	11.9	%		31.22		356	12.1	%	-2.4	%	1.1	%	-0.2	%
Capital City Mall				34.12		353	11.8	%		32.49		356	11.9	%	5.0	%	-0.8	%	-0.1	%
The Gallery at Market East^{(3) (4)}				37.38		351	13.8	%		37.21		369	13.6	%	0.5	%	-4.9	%	0.2	%
Dartmouth Mall				29.62		350	12.6	%		29.67		346	12.0	%	-0.2	%	1.2	%	0.6	%
Sales per square foot between $300 - $349	16.7	%
Springfield Mall				34.09		336	17.1	%		30.86		335	15.4	%	10.5	%	0.3	%	1.7	%
Francis Scott Key Mall				26.83		326	11.7	%		27.52		316	12.1	%	-2.5	%	3.2	%	-0.4	%
Exton Square Mall				37.42		317	14.9	%		37.29		322	16.3	%	0.3	%	-1.6	%	-1.4	%
Magnolia Mall				26.89		311	13.4	%		24.54		293	13.2	%	9.6	%	6.1	%	0.2	%
Logan Valley Mall				26.35		306	11.5	%		26.03		299	12.1	%	1.2	%	2.3	%	-0.6	%
Valley Mall				26.66		303	12.2	%		25.28		314	13.0	%	5.5	%	-3.5	%	-0.8	%
Crossroads Mall				22.62		301	9.7	%		20.93		306	9.6	%	8.1	%	-1.6	%	0.1	%
Sales per square foot under $300	26.3	%
Cumberland Mall				28.08		297	14.6	%		26.90		303	14.1	%	4.4	%	-2.0	%	0.5	%
Wiregrass Commons Mall⁽³⁾				26.94		284	11.3	%		25.90		278	11.3	%	4.0	%	2.2	%	0.0	%
Nittany Mall				22.43		281	11.0	%		23.50		303	10.6	%	-4.6	%	-7.3	%	0.4	%
Palmer Park Mall				25.39		279	11.6	%		25.05		291	12.2	%	1.3	%	-4.1	%	-0.6	%
Uniontown Mall				22.17		279	11.0	%		22.63		283	11.3	%	-2.1	%	-1.4	%	-0.3	%
Plymouth Meeting Mall				31.97		277	11.0	%		32.37		252	13.2	%	-1.2	%	9.9	%	-2.2	%
New River Valley Mall				25.51		273	10.1	%		24.63		255	10.9	%	3.6	%	7.1	%	-0.8	%
North Hanover Mall				28.22		271	12.5	%		24.99		273	13.1	%	12.9	%	-0.7	%	-0.6	%
Gadsden Mall				21.38		266	9.8	%		24.77		266	10.2	%	-13.7	%	0.0	%	-0.4	%
Beaver Valley Mall				22.30		250	14.2	%		23.64		251	15.4	%	-5.7	%	-0.4	%	-1.2	%
Lycoming Mall				22.03		249	10.3	%		20.96		244	12.3	%	5.1	%	2.0	%	-2.0	%
Chambersburg Mall				26.55		240	9.5	%		26.71		229	11.9	%	-0.6	%	4.8	%	-2.4	%
Washington Crown Center				21.11		235	11.5	%		21.93		252	13.4	%	-3.8	%	-6.7	%	-1.9	%
South Mall				23.82		232	12.2	%		24.16		264	12.7	%	-1.4	%	-12.1	%	-0.5	%
Orlando Fashion Square				34.58		223	18.5	%		35.57		241	18.5	%	-2.8	%	-7.5	%	0.0	%
Phillipsburg Mall				24.79		220	12.1	%		25.30		236	14.3	%	-2.0	%	-6.8	%	-2.2	%
Voorhees Town Center				33.95		204	13.0	%		31.97		207	13.6	%	6.2	%	-1.4	%	-0.6	%

Enclosed Malls weighted average			$	32.71	$	344	13.1	%	$	31.88	$	337	13.6	%	2.6	%	2.1	%	-0.5	%

Consolidated Properties			$	31.94	$	333	13.0	%	$	31.24	$	328	13.5	%	2.2	%	1.5	%	-0.5	%
Unconsolidated Properties			$	41.09	$	458	13.7	%	$	38.92	$	422	13.9	%	5.6	%	8.5	%	-0.2	%
Same Properties			$	32.71	$	344	13.1	%	$	31.88	$	337	13.6	%	2.6	%	2.2	%	-0.5	%

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

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

⁽³⁾	Property contains a vacant anchor space as of June 30, 2009.

⁽⁴⁾	Property contains a vacant anchor space as of June 30, 2010.

Page 12

Pennsylvania Real Estate Investment Trust

Mall Occupancy - Owned GLA


	June 30, 2010				June 30, 2009				Change
	Total		Non-Anchor		Total		Non-Anchor		Total		Non-Anchor
Beaver Valley Mall	88.6	%	75.5	%	88.1	%	74.5	%	0.5	%	1.0	%
Capital City Mall	96.1	%	93.4	%	98.2	%	96.9	%	-2.1	%	-3.5	%
Chambersburg Mall	82.5	%	62.5	%	83.1	%	63.8	%	-0.6	%	-1.3	%
Cherry Hill Mall	89.6	%	87.5	%	92.3	%	90.6	%	-2.7	%	-3.1	%
Crossroads Mall	86.2	%	68.2	%	82.7	%	60.1	%	3.5	%	8.1	%
Cumberland Mall	91.9	%	86.6	%	92.8	%	92.2	%	-0.9	%	-5.6	%
Dartmouth Mall	92.7	%	88.0	%	92.2	%	87.2	%	0.5	%	0.8	%
Exton Square Mall	89.6	%	77.2	%	91.4	%	81.1	%	-1.8	%	-3.9	%
Francis Scott Key Mall	97.5	%	95.2	%	94.6	%	89.7	%	2.9	%	5.5	%
Gadsden Mall	92.3	%	80.9	%	90.1	%	75.4	%	2.2	%	5.5	%
The Gallery at Market East⁽¹⁾	60.4	%	75.2	%	50.2	%	75.7	%	10.2	%	-0.5	%
Jacksonville Mall	97.6	%	95.1	%	97.4	%	94.8	%	0.2	%	0.3	%
Lehigh Valley Mall	95.7	%	94.1	%	93.7	%	91.4	%	2.0	%	2.7	%
Logan Valley Mall	94.1	%	85.9	%	95.4	%	89.0	%	-1.3	%	-3.1	%
Lycoming Mall	94.5	%	89.8	%	96.5	%	93.4	%	-2.0	%	-3.6	%
Magnolia Mall	95.2	%	89.1	%	96.6	%	92.3	%	-1.4	%	-3.2	%
Moorestown Mall	88.7	%	74.7	%	85.2	%	66.8	%	3.5	%	7.9	%
New River Valley Mall	94.7	%	91.2	%	96.2	%	93.7	%	-1.5	%	-2.5	%
Nittany Mall	92.5	%	84.9	%	90.1	%	80.0	%	2.4	%	4.9	%
North Hanover Mall	89.6	%	75.1	%	89.9	%	76.0	%	-0.3	%	-0.9	%
Orlando Fashion Square	85.6	%	69.3	%	87.0	%	72.2	%	-1.4	%	-2.9	%
Palmer Park Mall	95.3	%	84.9	%	95.9	%	87.0	%	-0.6	%	-2.1	%
Patrick Henry Mall	97.3	%	94.8	%	96.5	%	93.2	%	0.8	%	1.6	%
Phillipsburg Mall	90.0	%	77.0	%	90.5	%	78.3	%	-0.5	%	-1.3	%
Plymouth Meeting Mall	83.8	%	75.3	%	83.2	%	76.6	%	0.6	%	-1.3	%
The Mall at Prince Georges	93.9	%	87.1	%	95.8	%	91.1	%	-1.9	%	-4.0	%
South Mall	89.8	%	84.4	%	78.2	%	81.9	%	11.6	%	2.5	%
Springfield Mall	85.0	%	85.0	%	86.1	%	86.1	%	-1.1	%	-1.1	%
Uniontown Mall	93.0	%	82.5	%	91.5	%	78.5	%	1.5	%	4.0	%
Valley Mall	95.5	%	92.2	%	97.1	%	95.0	%	-1.6	%	-2.8	%
Valley View Mall	91.7	%	88.5	%	91.9	%	88.8	%	-0.2	%	-0.3	%
Viewmont Mall	97.8	%	94.3	%	97.9	%	94.4	%	-0.1	%	-0.1	%
Voorhees Town Center	62.1	%	61.5	%	63.2	%	62.6	%	-1.1	%	-1.1	%
Washington Crown Center	83.1	%	68.8	%	83.6	%	69.7	%	-0.5	%	-0.9	%
Willow Grove Park⁽²⁾	69.1	%	92.7	%	69.5	%	93.6	%	-0.4	%	-0.9	%
Wiregrass Commons Mall⁽³⁾	85.5	%	79.1	%	54.5	%	78.9	%	31.0	%	0.2	%
Woodland Mall	85.3	%	85.3	%	84.8	%	84.8	%	0.5	%	0.5	%
Wyoming Valley Mall	95.7	%	87.8	%	92.4	%	78.1	%	3.3	%	9.7	%

Enclosed Malls weighted average⁽⁴⁾	89.0	%	83.6	%	88.3	%	83.7	%	0.7	%	-0.1	%


Consolidated Properties	88.8	%	83.0	%	88.1	%	83.3	%	0.7	%	-0.3	%
Unconsolidated Properties	93.4	%	91.6	%	92.0	%	89.9	%	1.4	%	1.7	%
Same Properties	89.0	%	83.6	%	88.3	%	83.7	%	0.7	%	-0.1	%

⁽¹⁾	The total occupancy percentage for The Gallery at Market East includes 328,390 sf of the former Strawbridge’s store that is currently vacant, pending redevelopment. This vacant department store represents 30.3% and 38.5% of the owned mall GLA as of June 30, 2010 and June 30, 2009, respectively.

⁽²⁾	The total occupancy percentage for Willow Grove Park includes the former Strawbridge’s store that is currently vacant. This vacant department store represents 27.6% of the owned mall GLA in each of the periods ending June 30, 2010 and 2009.

⁽³⁾	The total occupancy percentage as of June 30, 2009 for this property includes the former McRae’s store location that was vacant at that time. The vacant store location is currently leased to Burlington Coat Factory, which opened in the 3rd Quarter of 2009.

⁽⁴⁾	Including all tenants occupying space under an agreement with an initial term of less than one year, total enclosed mall occupancy is 90.3% and 89.7%, and occupancy excluding anchors is 86.0% and 86.4% for the periods ending June 30, 2010 and June 30, 2009, respectively.

Page 13

Pennsylvania Real Estate Investment Trust

Strip and Power Center Rent Per Square Foot and Occupancy Percentages


	June 30, 2010						June 30, 2009						Change
	Avg Base Rent		Occupancy				Avg Base Rent		Occupancy				Avg Base Rent		Occupancy
	Avg Base Rent		Total		Non-Anchor		Avg Base Rent		Total		Non-Anchor		Avg Base Rent		Total		Non-Anchor

Christiana Center	$	19.96	98.8	%	96.8	%	$	21.94	88.1	%	67.7	%	-9.0	%	10.7	%	29.1	%

Creekview Center		15.20	100.0	%	100.0	%		15.16	100.0	%	100.0	%	0.3	%	0.0	%	0.0	%

The Commons at Magnolia		13.40	84.9	%	81.1	%		12.04	66.4	%	88.9	%	11.3	%	18.5	%	-7.8	%

Metroplex Shopping Center		19.10	100.0	%	100.0	%		19.10	100.0	%	100.0	%	0.0	%	0.0	%	0.0	%

Monroe Marketplace		14.81	93.7	%	84.8	%		15.97	100.0	%	100.0	%	-7.3	%	-6.3	%	-15.2	%

New River Valley Center		14.37	100.0	%	100.0	%		14.37	100.0	%	100.0	%	0.0	%	0.0	%	0.0	%

The Court at Oxford Valley		16.08	100.0	%	100.0	%		16.32	91.3	%	88.1	%	-1.5	%	8.7	%	11.9	%

Paxton Towne Centre		15.44	98.2	%	97.3	%		16.04	90.8	%	86.1	%	-3.7	%	7.4	%	11.2	%

Pitney Road Plaza		19.75	100.0	%	100.0	%		N/A	N/A		N/A		N/A		N/A		N/A

Red Rose Commons		13.99	84.8	%	84.8	%		14.08	72.5	%	72.5	%	-0.6	%	12.3	%	12.3	%

Springfield Park		20.90	98.2	%	94.9	%		15.70	100.0	%	100.0	%	33.1	%	-1.8	%	-5.1	%

Sunrise Plaza		14.70	97.6	%	77.8	%		14.70	97.6	%	77.8	%	0.0	%	0.0	%	0.0	%

Whitehall Mall		12.40	91.6	%	82.3	%		11.29	86.8	%	72.0	%	9.8	%	4.8	%	10.3	%


Weighted Average	$	16.00	96.1	%	94.0	%	$	15.97	91.6	%	87.6	%	0.2	%	4.5	%	6.4	%


Consolidated Properties	$	15.70	96.9	%	94.5	%	$	15.81	93.1	%	90.2	%	-0.7	%	3.8	%	4.3	%

Unconsolidated Properties	$	16.22	95.3	%	93.6	%	$	16.08	90.1	%	85.9	%	0.9	%	5.2	%	7.7	%

Same Properties	$	15.92	96.0	%	93.8	%	$	15.97	91.6	%	87.6	%	-0.3	%	4.4	%	6.2	%

New Properties	$	19.75	100.0	%	100.0	%		N/A	N/A		N/A		N/A		N/A		N/A

Page 14

Pennsylvania Real Estate Investment Trust

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

(dollars in thousands)


	Paying Minimum Rent		Paying Percentage of Sales in lieu of Minimum Rent⁽²⁾		Total		Minimum Rent
Tenant⁽¹⁾	Number of Locations	GLA	Number of Locations	GLA	Total Number of Locations	Total GLA	Annualized Minimum Rent		PREIT’s share of Annualized Minimum Rent⁽³⁾		Percent of PREIT’s Total Retail Minimum Rent
Gap, Inc.	47	594,224	4	42,816	51	637,040	$	12,842	$	11,789	4.07	%
JCPenney Company, Inc.	24	2,369,736	6	824,327	30	3,194,063		7,526		7,526	2.60	%
Foot Locker, Inc.	62	325,507	9	32,092	71	357,599		7,926		7,474	2.58	%
Limited Brands, Inc.	59	282,522	13	41,196	72	323,718		7,626		7,180	2.48	%
American Eagle Outfitters, Inc.	39	212,771	2	8,840	41	221,611		6,547		6,245	2.16	%
Zale Corporation	76	59,844	0	—	76	59,844		5,607		5,303	1.83	%
Sears Holding Corporation	24	2,796,396	5	880,777	29	3,677,173		5,445		5,302	1.83	%
Dick’s Sporting Goods, Inc.	9	422,794	1	50,484	10	473,278		5,269		4,495	1.55	%
Signet Jewelers Limited	39	59,732	0	—	39	59,732		4,548		4,393	1.52	%
Best Buy Co., Inc.	12	282,316	0	—	12	282,316		5,093		4,093	1.41	%
Luxottica Group S.p.A.	49	116,626	2	8,082	51	124,708		4,069		3,780	1.31	%
Golden Gate Capital⁽⁴⁾	14	130,715	4	24,742	18	155,457		3,974		3,584	1.24	%
Abercrombie & Fitch Co.	20	136,727	0	—	20	136,727		3,961		3,579	1.24	%
Genesco, Inc.	57	73,548	3	3,543	60	77,091		3,301		3,165	1.09	%
Commonwealth of Pennsylvania	2	229,244	0	—	2	229,244		3,085		3,085	1.07	%
Hallmark Cards, Inc.	36	142,377	7	30,813	43	173,190		3,197		3,030	1.05	%
Aeropostale, Inc.	32	112,197	3	10,619	35	122,816		3,169		3,004	1.04	%
Pacific Sunwear, Inc.	28	104,522	5	16,858	33	121,380		3,074		2,920	1.01	%
Bed Bath & Beyond, Inc.	10	307,644	0	—	10	307,644		4,056		2,842	0.98	%
Burlington Coat Factory Warehouse Corp.	6	537,986	0	—	6	537,986		2,826		2,826	0.98	%

Total Top 20 Tenants	645	9,297,428	64	1,975,189	709	11,272,617	$	103,141	$	95,615	33.04	%

Total Retail Leases					3,121				$	289,365	100.00	%

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

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

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

⁽⁴⁾	Consists of 17 Express stores and one J. Jill store.

Page 15

Pennsylvania Real Estate Investment Trust

Lease Expirations as of June 30, 2010

(dollars in thousands except psf amounts)


Non-Anchors⁽¹⁾
		Gross Leasable Area			Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring	Expiring GLA	Percent of Total		Minimum Rent in Expiring Year		PREIT’s Share of Minimum Rent in Expiring Year⁽²⁾		Percent of PREIT’s Total		Average Expiring Minimum Rent psf
Holdover	140	366,314	3.0	%	$	8,843	$	8,650	3.1	%	$	24.14
2010	153	477,300	3.8	%		10,562		9,731	3.5	%		22.13
2011	617	1,970,056	15.9	%		49,161		45,259	16.2	%		24.95
2012	454	1,577,125	12.7	%		39,099		36,175	12.9	%		24.79
2013	314	1,070,204	8.6	%		24,332		22,800	8.1	%		22.74
2014	236	811,662	6.5	%		20,844		18,976	6.8	%		25.68
2015	217	1,119,211	9.0	%		25,682		22,815	8.1	%		22.95
2016	224	933,307	7.5	%		27,289		24,685	8.8	%		29.24
2017	183	832,459	6.7	%		22,312		20,644	7.4	%		26.80
2018	194	1,038,082	8.4	%		26,501		24,561	8.8	%		25.53
2019	146	714,411	5.8	%		20,414		19,521	7.0	%		28.57
Thereafter	127	1,491,459	12.1	%		28,118		26,230	9.4	%		18.85

Total/Average	3,005	12,401,590	100.0	%	$	303,157	$	280,047	100.0	%	$	24.45


Anchors⁽¹⁾
		Gross Leasable Area			Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring ⁽³⁾	Expiring GLA	Percent of Total		Minimum Rent in Expiring Year		PREIT’s Share of Minimum Rent in Expiring Year⁽²⁾		Percent of PREIT’s Total		Average Expiring Minimum Rent psf
2011	18	1,625,899	13.8	%	$	4,932	$	4,283	10.0	%	$	3.03
2012	7	859,686	7.3	%		1,822		1,785	4.1	%		2.12
2013	14	1,135,570	9.6	%		4,593		4,593	10.7	%		4.04
2014	15	1,551,546	13.1	%		4,249		3,787	8.8	%		2.74
2015	20	1,854,217	15.7	%		5,524		5,524	12.8	%		2.98
2016	4	542,007	4.6	%		981		981	2.3	%		1.81
2017	4	381,158	3.2	%		2,058		1,695	3.9	%		5.40
2018	6	777,965	6.6	%		4,069		4,069	9.5	%		5.23
2019	9	868,994	7.4	%		2,944		2,944	6.8	%		3.39
Thereafter	19	2,216,686	18.7	%		14,022		13,357	31.0	%		6.33

Total/Average	116	11,813,728	100.0	%	$	45,194	$	43,018	100.0	%	$	3.83

⁽¹⁾	Only includes owned space.

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

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

Page 16

Pennsylvania Real Estate Investment Trust

Retail Gross Leasable Area Occupancy Summary as of June 30, 2010


		Owned GLA
		Occupied			Vacant
	��	Anchor	Non-Anchor		Anchor	Non-Anchor
		Anchor	Large Format ⁽¹⁾	Small Shop ⁽²⁾	Anchor	Non-Anchor	GLA Not Owned	Total GLA
Malls
Beaver Valley Mall		511,267	127,285	209,510	—	109,469	204,770	1,162,301
Capital City Mall		204,301	63,586	202,020	—	18,850	120,000	608,757
Chambersburg Mall		241,690	19,651	113,323	—	79,673	—	454,337
Cherry Hill Mall⁽³⁾		138,000	204,015	392,651	—	85,259	478,885	1,298,810
Crossroads Mall		254,211	—	132,701	—	61,823	—	448,735
Cumberland Mall		264,348	212,538	137,044	—	54,185	273,230	941,345
Dartmouth Mall		208,460	119,706	164,286	—	38,597	140,000	671,049
Exton Square Mall		440,301	26,617	258,059	—	84,268	277,468	1,086,713
Francis Scott Key Mall		269,708	93,084	189,910	—	14,190	139,333	706,225
Gadsden Mall		300,960	65,746	98,197	—	38,723	—	503,626
The Gallery at Market East		350,115	84,970	220,123	328,390	100,695	—	1,084,293
Jacksonville Mall		242,115	98,693	133,727	—	11,883	—	486,418
Lehigh Valley Mall		212,000	171,800	367,760	—	33,536	371,986	1,157,082
Logan Valley Mall		454,387	43,943	236,126	—	46,000	—	780,456
Lycoming Mall		333,413	182,268	160,556	—	38,981	120,000	835,218
Magnolia Mall		343,118	74,000	169,167	—	29,787	—	616,072
Moorestown Mall		408,356	98,682	147,679	—	83,233	321,200	1,059,150
New River Valley Mall		175,306	122,239	120,194	—	23,324	—	441,063
Nittany Mall		221,462	12,500	170,461	—	32,622	95,000	532,045
North Hanover Mall		206,792	21,047	90,848	—	37,076	—	355,763
Orlando Fashion Square		491,999	121,389	182,662	—	134,452	155,576	1,086,078
Palmer Park Mall		314,235	—	121,764	—	21,703	—	457,702
Patrick Henry Mall		279,619	37,758	241,632	—	15,321	140,000	714,330
Phillipsburg Mall		326,552	42,021	152,106	—	58,031	—	578,710
Plymouth Meeting Mall⁽⁴⁾		253,584	178,291	188,655	—	120,056	214,635	955,221
The Mall at Prince Georges		479,619	102,742	273,892	—	55,789	—	912,042
South Mall		139,691	131,434	92,553	—	41,521	—	405,199
Springfield Mall		—	—	188,840	—	33,259	387,899	609,998
Uniontown Mall		421,378	67,996	160,648	—	48,563	—	698,585
Valley Mall		280,549	125,334	236,355	—	30,505	243,400	916,143
Valley View Mall		96,357	74,148	144,635	—	28,477	254,596	598,213
Viewmont Mall		386,262	82,893	144,380	—	13,659	120,000	747,194
Voorhees Town Center⁽⁵⁾		4,404	67,478	102,253	—	106,370	396,783	677,288
Washington Crown Center		245,401	54,073	145,935	—	90,614	140,095	676,118
Willow Grove Park		225,000	37,260	284,073	218,430	25,455	413,121	1,203,339
Wiregrass Commons		94,686	10,345	156,549	—	44,220	332,152	637,952
Woodland Mall		—	120,959	248,864	—	63,593	725,187	1,158,603
Wyoming Valley Mall		592,110	90,851	189,461	—	38,827	—	911,249

Total Malls (38 properties)		10,411,756	3,187,342	6,969,599	546,820	1,992,589	6,065,316	29,173,422

Strip and Power Centers
Christiana Center		190,814	68,132	39,888	—	3,600	—	302,434
Creekview Center		—	111,966	24,457	—	—	288,916	425,339
The Commons at Magnolia		20,631	28,618	39,302	—	15,781	126,200	230,532
Metroplex Shopping Center		67,185	362,593	47,683	—	—	300,729	778,190
Monroe Marketplace		195,549	97,363	20,701	—	21,184	126,842	461,639
New River Valley Center		—	137,964	26,699	—	—	—	164,663
The Court at Oxford Valley		59,620	361,129	36,154	—	—	247,623	704,526
Paxton Towne Centre		151,627	221,425	63,380	—	8,000	273,058	717,490
Pitney Road Plaza		—	45,915	—	—	—	137,933	183,848
Red Rose Commons		—	208,212	15,206	—	40,034	199,590	463,042
Springfield Park		83,539	20,500	22,443	—	2,329	145,669	274,480
Sunrise Plaza		226,772	20,388	1,000	—	6,100	—	254,260
Whitehall Mall		294,635	160,865	55,411	—	46,590	—	557,501

Total Strip and Power Centers (13 properties)		1,290,372	1,845,070	392,324	—	143,618	1,846,560	5,517,944

CONSOLIDATED PROPERTIES		10,985,149	3,747,313	6,628,426	546,820	1,980,459	6,258,380	30,146,547
UNCONSOLIDATED PROPERTIES		716,979	1,285,099	733,497	—	155,748	1,653,496	4,544,819
TOTAL PROPERTIES		11,702,128	5,032,412	7,361,923	546,820	2,136,207	7,911,876	34,691,366

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

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

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

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

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

Page 17

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2010


Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
MALLS
Beaver Valley Mall Monaca, PA	100%	2002	1970/1991	Boscov’s JCPenney Macy’s Sears	9/30/18 9/30/17 (1) 8/15/11
Capital City Mall Camp Hill, PA	100%	2003	1974/2005	JCPenney Macy’s Sears	11/30/15 (1) 7/28/14
Chambersburg Mall Chambersburg, PA	100%	2003	1982	Bon-Ton Burlington Coat Factory JCPenney Sears	1/28/11 1/31/19 3/31/12 2/9/15
Cherry Hill Mall Cherry Hill, NJ	100%	2003	1961/2009	The Container Store Crate and Barrel JCPenney Macy’s Nordstrom	2/28/18 1/31/23 (1) (1) 3/31/24
Crossroads Mall⁽²⁾ Beckley, WV	100%	2003	1981	Belk JCPenney Sears	11/5/14 12/31/11 3/31/16
Cumberland Mall Vineland, NJ	100%	2005	1973/2003	Best Buy BJ’s Boscov’s Burlington Coat Factory Home Depot JCPenney	1/31/16 (1) (1) 4/30/19 10/31/19 11/30/13
Dartmouth Mall Dartmouth, MA	100%	1997	1971/2000	JCPenney Macy’s Sears	7/31/14 (1) 4/12/16
Exton Square Mall⁽²⁾ Exton, PA	100%	2003	1973/2000	Boscov’s JCPenney K-Mart Macy’s Sears	10/31/19 5/31/20 (1) (1) 10/6/19
Francis Scott Key Mall Frederick, MD	100%	2003	1978/1991	Barnes & Noble JCPenney Macy’s Sears Value City Furniture	4/30/17 9/30/11 (1) 7/31/13 1/31/19
Gadsden Mall Gadsden, AL	100%	2005	1974/1990	Belk JCPenney Sears	7/31/14 1/31/29 3/5/14
The Gallery at Market East⁽²⁾ Philadelphia, PA	100%	2003	1977/1990	Burlington Coat Factory Commonwealth of Pennsylvania	2/28/32 6/30/29
Jacksonville Mall Jacksonville, NC	100%	2003	1981/2008	Barnes & Noble Belk JCPenney Sears	5/31/18 8/21/11 8/31/15 8/4/11
Lehigh Valley Mall⁽³⁾ Allentown, PA	50%	1973	1977/2007	Barnes & Noble Boscov’s JCPenney Macy’s	10/31/17 (1) (1) 7/31/12
Logan Valley Mall Altoona, PA	100%	2003	1960/1997	JCPenney Macy’s Sears	1/31/17 1/31/15 10/31/16
Lycoming Mall Pennsdale, PA	100%	2003	1978/2007	Best Buy Bon-Ton Borders Burlington Coat Factory Dick’s Sporting Goods JCPenney Macy’s Sears	1/31/17 7/27/11 1/31/17 1/31/19 1/31/17 10/31/15 (1) 7/31/13
Magnolia Mall Florence, SC	100%	1997	1979/2007	Barnes & Noble Belk Best Buy Dick’s Sporting Goods JCPenney Sears	9/30/17 1/31/11 1/31/13 1/31/18 3/31/12 10/16/14

Page 18

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2010 (continued)


Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
Moorestown Mall Moorestown, NJ	100%	2003	1963/2008	Boscov’s Lord & Taylor Macy’s Sears	10/31/15 (1) (1) 10/5/22
New River Valley Mall Christiansburg, VA	100%	2003	1988/2007	Belk Dick’s Sporting Goods JCPenney Regal Cinemas Sears	4/19/14 1/31/17 3/31/13 4/30/22 8/2/13
Nittany Mall State College, PA	100%	2003	1968/1990	Bon-Ton JCPenney Macy’s Sears	1/31/13 7/31/15 (1) 8/28/15
North Hanover Mall Hanover, PA	100%	2003	1967/1999	Dick’s Sporting Goods JCPenney Sears	1/31/18 1/31/11 11/30/14
Orlando Fashion Square⁽²⁾ Orlando, FL	100%	2004	1973/2003	Dillard’s JCPenney Macy’s Sears	1/31/14 4/30/13 10/30/71 (1)
Palmer Park Mall Easton, PA	100%	1972/2003	1972/1998	Bon-Ton Boscov’s	7/25/14 10/31/18
Patrick Henry Mall Newport News, VA	100%	2003	1988/2005	Borders Dick’s Sporting Goods Dillard’s JCPenney Macy’s	1/31/20 1/31/22 9/22/13 10/31/15 (1)
Phillipsburg Mall Phillipsburg, NJ	100%	2003	1989/2003	Bon-Ton JCPenney Kohl’s Sears	1/31/15 3/31/13 1/31/25 4/30/14
Plymouth Meeting Mall⁽²⁾ Plymouth Meeting, PA	100%	2003	1966/2009	AMC Theater Boscov’s Macy’s Whole Foods	12/31/18 10/31/16 (1) 11/30/29
The Mall at Prince Georges Hyattsville, MD	100%	1998	1959/2004	JCPenney Macy’s Marshalls Ross Dress for Less Target	7/31/11 10/31/18 9/30/16 1/31/18 1/31/15
South Mall Allentown, PA	100%	2003	1975/1992	Bon-Ton Stein Mart	1/28/11 10/31/11
Springfield Mall Springfield, PA	50%	2005	1974/1997	Macy’s Target	(1) (1)
Uniontown Mall⁽²⁾ Uniontown, PA	100%	2003	1972/1990	Bon-Ton Burlington Coat Factory JCPenney Roomful Express Furn. Sears Teletech Customer Care	1/29/11 1/31/19 10/31/15 3/31/15 2/25/13 6/30/13
Valley Mall Hagerstown, MD	100%	2003	1974/1999	Bon-Ton JCPenney Macy’s Sears	1/31/14 10/31/14 (1) (1)
Valley View Mall La Crosse, WI	100%	2003	1980/2001	Barnes & Noble Herberger’s JCPenney Macy’s Sears	11/30/16 (1) 7/31/15 (1) (1)
Viewmont Mall Scranton, PA	100%	2003	1968/2006	JCPenney Macy’s Sears	10/31/15 (1) 12/31/15
Voorhees Town Center⁽²⁾ Voorhees, NJ	100%	2003	1970/2007	Boscov’s Macy’s The Star Group	(1) (1) 8/31/28
Washington Crown Center Washington, PA	100%	2003	1969/1999	Bon-Ton Gander Mountain Sports Macy’s Sears	1/31/15 7/24/13 (1) 8/17/14

Page 19

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2010 (continued)


Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
Willow Grove Park Willow Grove, PA	100%	2000/2003	1982/2001	Bloomingdale’s The Cheesecake Factory Macy’s Sears	(1) 1/31/28 1/31/22 (1)
Wiregrass Commons Mall Dothan, AL	100%	2003	1986/2008	Belk Burlington Coat Factory JCPenney	1/31/37 1/31/20 (1)
Woodland Mall Grand Rapids, MI	100%	2005	1968/1998	Apple Barnes & Noble JCPenney Kohl’s Macy’s Sears	6/30/15 1/31/20 (1) (1) (1) (1)
Wyoming Valley Mall Wilkes-Barre, PA	100%	2003	1971/2006	Bon-Ton JCPenney Macy’s Sears	1/31/12 4/30/12 1/31/12 8/1/11

POWER CENTERS
Christiana Center Newark, DE	100%	1998	1998	Costco Dick’s Sporting Goods	9/30/18 11/30/13
Creekview Center Warrington, PA	100%	1999	2001	Genuardi’s Lowe’s Target	12/31/21 (1) (1)
Metroplex Shopping Center⁽³⁾ Plymouth Meeting, PA	50%	1999	2001	Giant Food Store Lowe’s Target	2/28/21 (1) (1)
Monroe Marketplace Selinsgrove, PA	100%	2007	2008	Bed, Bath & Beyond Best Buy Dick’s Sporting Goods Giant Food Store Kohl’s Target	1/31/19 10/31/18 1/31/19 10/31/28 1/31/29 (1)
New River Valley Center Christiansburg, VA	100%	2005	2007	Bed, Bath & Beyond Best Buy Staples	1/31/18 1/31/18 11/30/17
The Court at Oxford Valley⁽³⁾ Langhorne, PA	50%	1997	1996	Best Buy BJ’s Dick’s Sporting Goods Home Depot	5/31/11 (1) 4/30/21 (1)
Paxton Towne Centre Harrisburg, PA	100%	1999	2001	Costco Kohl’s Target Weis Markets	(1) 1/25/21 (1) 11/30/20
Pitney Road Plaza Lancaster, PA	100%	2008	2009	Best Buy Lowe’s	1/31/20 (1)
Red Rose Commons⁽³⁾ Lancaster, PA	50%	1998	1998	Home Depot Weis Markets	(1) (1)
Sunrise Plaza Forked River, NJ	100%	2005	2007	Home Depot Kohl’s Staples	1/31/38 10/31/28 2/28/19
Whitehall Mall⁽³⁾ Allentown, PA	50%	1964	1964/1998	Bed, Bath & Beyond Kohl’s Sears	1/31/15 3/9/17 9/18/11
STRIP CENTERS
The Commons at Magnolia Florence, SC	100%	1999	1991/2002	Bed, Bath & Beyond Target	1/31/15 (1)
Springfield Park Springfield, PA	50%	1997/1998	1997/1998	Bed, Bath & Beyond LA Fitness Target	1/31/14 3/31/17 (1)

⁽¹⁾	Space is not owned by PREIT.

⁽²⁾	Property is subject to a ground lease.

⁽³⁾	Property is managed by a third party.

Page 20

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method⁽¹⁾

(in thousands, except per share amounts)


	June 30, 2010									December 31, 2009
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,523,664		$	209,280		$	3,732,944		$	3,459,745		$	208,319		$	3,668,064
Construction in progress		161,996			1,010			163,006			215,231			1,566			216,797
Land held for development		9,337			184			9,521			9,337			183			9,520

Total investments in real estate		3,694,997			210,474			3,905,471			3,684,313			210,068			3,894,381
Accumulated depreciation		(690,489	)		(63,221	)		(753,710	)		(623,309	)		(59,849	)		(683,158	)

Net investments in real estate		3,004,508			147,253			3,151,761			3,061,004			150,219			3,211,223

Investments in partnerships, at equity		29,528			(29,528	)		—			32,694			(32,694	)		—
Other assets:
Cash and cash equivalents		29,250			3,907			33,157			74,243			2,904			77,147
Rent and other receivables⁽²⁾		35,169			7,827			42,996			55,303			7,501			62,804
Intangible assets, net		25,598			384			25,982			38,978			464			39,442
Deferred costs and other assets, net		91,498			7,194			98,692			84,358			7,395			91,753

Total other assets		211,043			(10,216	)		200,827			285,576			(14,430	)		271,146

Total assets	$	3,215,551		$	137,037		$	3,352,588		$	3,346,580		$	135,789		$	3,482,369


LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $2,157 and $2,744 as of June 30, 2010 and December 31, 2009, respectively)	$	1,798,287		$	179,637		$	1,977,924		$	1,777,121		$	181,776		$	1,958,897
Exchangeable notes (net of discount of $3,749 and $4,664 as of June 30, 2010 and December 31, 2009, respectively)		133,151			—			133,151			132,236			—			132,236
Revolving Facility		—			—			—			486,000			—			486,000
Term Loans		413,500			—			413,500			170,000			—			170,000
Tenants’ deposits and deferred rent		13,827			3,496			17,323			13,170			3,621			16,791
Distributions in excess of partnership investments		44,199			(44,199	)		—			48,771			(48,771	)		—
Accrued construction expenses		3,086			—			3,086			11,778			—			11,778
Fair value of derivative instruments		27,252			—			27,252			14,610			—			14,610
Other liabilities		53,392			(1,949	)		51,443			58,090			(1,010	)		57,080

Total liabilities		2,486,694			136,985			2,623,679			2,711,776			135,616			2,847,392


Equity:
Total equity		728,857			52			728,909			634,804			173			634,977

Total liabilities and equity	$	3,215,551		$	137,037		$	3,352,588		$	3,346,580		$	135,789		$	3,482,369

⁽¹⁾

Total includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s equity in these properties.

⁽²⁾	Total includes straight line rent of $28.7 million ($26.0 million wholly owned, $2.7 million partnership) as of June 30, 2010 and $27.8 ($24.9 million wholly owned, $2.9 million partnership) as of December 31, 2009.

Page 21

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Property Type⁽¹⁾

(in thousands, except per share amounts)


	June 30, 2010												December 31, 2009
	Malls			Strip and Power Centers			Corporate, Development and Other Properties			Total			Malls			Strip and Power Centers			Corporate, Development and Other Properties			Total
ASSETS:
Investments in real estate:
Investments in real estate, at cost	$	3,385,952		$	350,090		$	6,423		$	3,742,465		$	3,331,917		$	338,560		$	7,107		$	3,677,584
Construction in progress		102,773			5,786			54,447			163,006			148,561			13,810			54,426			216,797

Total investments in real estate		3,488,725			355,876			60,870			3,905,471			3,480,478			352,370			61,533			3,894,381
Accumulated depreciation		(668,909	)		(83,615	)		(1,186	)		(753,710	)		(604,083	)		(77,804	)		(1,271	)		(683,158	)

Net investments in real estate		2,819,816			272,261			59,684			3,151,761			2,876,395			274,566			60,262			3,211,223

Other assets:
Cash and cash equivalents		15,299			1,329			16,529			33,157			15,072			1,250			60,825			77,147
Rent and other receivables⁽²⁾		30,682			9,928			2,386			42,996			40,741			9,674			12,389			62,804
Intangible assets, net		18,580			—			7,402			25,982			31,988			—			7,454			39,442
Deferred costs and other assets, net		64,289			10,706			23,697			98,692			67,529			10,468			13,756			91,753

Total other assets		128,850			21,963			50,014			200,827			155,330			21,392			94,424			271,146

Total assets	$	2,948,666		$	294,224		$	109,698		$	3,352,588		$	3,031,725		$	295,958		$	154,686		$	3,482,369


LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $2,157 and $2,744 as of June 30, 2010 and December 31, 2009, respectively)	$	1,760,018		$	207,814		$	10,092		$	1,977,924		$	1,743,555		$	205,250		$	10,092		$	1,958,897
Exchangeable notes (net of discount of $3,749 and $4,664 as of June 30, 2010 and December 31, 2009, respectively)		—			—			133,151			133,151			—			—			132,236			132,236
Revolving Facility		—			—			—			—			—			—			486,000			486,000
Term Loans		—			—			413,500			413,500			—			—			170,000			170,000
Tenants’ deposits and deferred rent		15,260			1,915			148			17,323			14,406			2,232			153			16,791
Accrued construction expenses		—			—			3,086			3,086			—			—			11,778			11,778
Fair value of derivative instruments		—			—			27,252			27,252			—			—			14,610			14,610
Other liabilities		32,164			(1,849	)		21,128			51,443			35,124			(2,094	)		24,050			57,080

Total liabilities		1,807,442			207,880			608,357			2,623,679			1,793,085			205,388			848,919			2,847,392

Equity:
Total equity		1,141,224			86,344			(498,659	)		728,909			1,238,640			90,570			(694,233	)		634,977

Total liabilities and equity	$	2,948,666		$	294,224		$	109,698		$	3,352,588		$	3,031,725		$	295,958		$	154,686		$	3,482,369

⁽¹⁾

⁽²⁾	Total includes straight line rent of $28.7 million ($26.0 million wholly owned, $2.7 million partnership) as of June 30, 2010 and $27.8 ($24.9 million wholly owned, $2.9 million partnership) as of December 31, 2009.

Page 22

Pennsylvania Real Estate Investment Trust

Investment in Real Estate⁽¹⁾

(in thousands)


	June 30, 2010								December 31, 2009
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Malls
Beaver Valley Mall	$	69,220	$	32	$	18,320	$	50,932	$	69,217	$	32	$	16,871	$	52,378
Capital City Mall		95,330		—		19,822		75,508		95,063		—		18,057		77,006
Chambersburg Mall		42,284		—		7,466		34,818		42,070		—		6,862		35,208
Cherry Hill Mall		445,677		516		65,546		380,647		418,058		27,083		54,781		390,360
Crossroads Mall		34,961		643		8,390		27,214		34,926		68		7,623		27,371
Cumberland Mall		62,828		38		8,100		54,766		62,540		—		7,159		55,381
Dartmouth Mall		62,539		—		25,817		36,722		62,283		—		24,494		37,789
Exton Square Mall		147,110		48		24,918		122,240		147,098		—		23,161		123,937
Francis Scott Key Mall		80,067		335		15,779		64,623		79,883		147		14,076		65,954
Gadsden Mall		60,517		—		8,663		51,854		60,471		—		7,607		52,864
The Gallery at Market East		131,859		38,101		17,313		152,647		130,679		38,816		14,838		154,657
Jacksonville Mall		78,930		—		14,902		64,028		78,346		—		13,470		64,876
Logan Valley Mall		95,884		—		21,322		74,562		95,877		—		19,674		76,203
Lycoming Mall		77,178		—		14,476		62,702		77,163		—		13,070		64,093
Magnolia Mall		87,120		63		23,563		63,620		86,756		1,295		22,028		66,023
Moorestown Mall		92,264		77		24,387		67,954		92,172		50		22,549		69,673
New River Valley Mall		57,748		—		13,719		44,029		57,748		—		12,094		45,654
Nittany Mall		43,516		—		8,565		34,951		43,417		—		7,853		35,564
North Hanover Mall		38,498		17,100		7,641		47,957		38,484		17,096		6,934		48,646
Orlando Fashion Square⁽²⁾		38,304		4		3,208		35,100		38,090		—		2,148		35,942
Palmer Park Mall		34,609		—		11,824		22,785		34,600		—		11,406		23,194
Patrick Henry Mall		141,221		—		29,891		111,330		141,004		—		27,130		113,874
Phillipsburg Mall		53,543		149		10,064		43,628		53,415		53		9,187		44,281
Plymouth Meeting Mall		161,365		15		23,532		137,848		144,036		17,032		20,149		140,919
The Mall at Prince Georges		100,198		—		31,385		68,813		100,168		—		29,645		70,523
South Mall		33,507		—		5,625		27,882		33,367		—		5,128		28,239
Uniontown Mall		38,877		—		8,970		29,907		38,782		—		8,170		30,612
Valley Mall		91,759		—		19,807		71,952		91,657		—		18,326		73,331
Valley View Mall		67,402		—		12,030		55,372		67,346		—		11,049		56,297
Viewmont Mall		89,463		—		15,875		73,588		89,113		—		14,333		74,780
Voorhees Town Center		61,680		21,453		11,788		71,345		59,639		22,355		9,799		72,195
Washington Crown Center		40,395		—		12,454		27,941		40,366		—		11,562		28,804
Willow Grove Park		189,388		23,940		43,631		169,697		189,166		23,943		40,582		172,527
Wiregrass Commons Mall		51,835		—		8,225		43,610		51,858		4		7,268		44,594
Woodland Mall		185,533		—		25,993		159,540		185,382		34		22,983		162,433
Wyoming Valley Mall		107,172		—		20,228		86,944		106,075		—		18,219		87,856

Total Consolidated Malls		3,289,781		102,514		643,239		2,749,056		3,236,315		148,008		580,285		2,804,038

Unconsolidated Malls
Lehigh Valley Mall		40,943		256		16,377		24,822		40,377		517		15,414		25,480
Springfield Mall		55,228		3		9,293		45,938		55,225		36		8,384		46,877

Total Unconsolidated Malls		96,171		259		25,670		70,760		95,602		553		23,798		72,357

TOTAL MALLS	$	3,385,952	$	102,773	$	668,909	$	2,819,816	$	3,331,917	$	148,561	$	604,083	$	2,876,395

⁽¹⁾

⁽²⁾	Includes impairment of $62,700 recorded in the 4th Quarter 2009.

Page 23

Pennsylvania Real Estate Investment Trust

Investment in Real Estate⁽¹⁾(continued)

(in thousands)


	June 30, 2010								December 31, 2009
	Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Strip and Power Centers
Christiana Center	$	41,954	$	—	$	11,666	$	30,288	$	40,980	$	—	$	11,078	$	29,902
Creekview Center		19,104		—		7,895		11,209		19,104		—		7,437		11,667
The Commons at Magnolia		13,479		—		4,207		9,272		11,477		506		3,974		8,009
Monroe Marketplace		48,014		4,850		2,695		50,169		45,427		7,473		1,782		51,118
New River Valley Center		26,744		—		2,711		24,033		26,744		—		2,197		24,547
Paxton Towne Centre		57,122		—		15,303		41,819		56,793		—		14,370		42,423
Pitney Road Plaza		6,868		903		103		7,668		6,411		1,348		33		7,726
Sunrise Plaza		29,935		—		2,670		27,265		25,831		4,188		2,153		27,866

Total Consolidated Strip and Power Centers		243,220		5,753		47,250		201,723		232,767		13,515		43,024		203,258

Unconsolidated Strip and Power Centers
Metroplex Shopping Center		42,168		13		14,536		27,645		42,168		8		13,759		28,417
The Court at Oxford Valley		27,863		20		8,320		19,563		27,863		20		7,983		19,900
Red Rose Commons		12,728		—		3,758		8,970		12,728		—		3,580		9,148
Whitehall Mall		16,820		—		8,340		8,480		15,749		267		8,118		7,898
Springfield Park		7,291		—		1,411		5,880		7,285		—		1,340		5,945

Total Unconsolidated Strip and Power Centers		106,870		33		36,365		70,538		105,793		295		34,780		71,308

TOTAL STRIP AND POWER CENTERS	$	350,090	$	5,786	$	83,615	$	272,261	$	338,560	$	13,810	$	77,804	$	274,566


Consolidated Properties Under Development
Springhills⁽²⁾	$	—	$	21,961	$	—	$	21,961	$	—	$	21,961	$	—	$	21,961
White Clay Point⁽³⁾		—		31,768		—		31,768		—		31,747		—		31,747

Total Consolidated Properties Under Development		—		53,729		—		53,729		—		53,708		—		53,708

Unconsolidated Properties Under Development
Pavilion at Market East		6,239		718		1,186		5,771		6,924		718		1,271		6,371

Total Unconsolidated Properties Under Development		6,239		718		1,186		5,771		6,924		718		1,271		6,371

Other Properties
Land held for development - unconsolidated		184		—		—		184		183		—		—		183

Total Other Properties		184		—		—		184		183		—		—		183

TOTAL DEVELOPMENT AND OTHER	$	6,423	$	54,447	$	1,186	$	59,684	$	7,107	$	54,426	$	1,271	$	60,262


TOTAL INVESTMENT IN REAL ESTATE	$	3,742,465	$	163,006	$	753,710	$	3,151,761	$	3,677,584	$	216,797	$	683,158	$	3,211,223


CONSOLIDATED PROPERTIES	$	3,533,001	$	161,996	$	690,489	$	3,004,508	$	3,469,082	$	215,231	$	623,309	$	3,061,004

UNCONSOLIDATED PROPERTIES		209,464		1,010		63,221		147,253		208,502		1,566		59,849		150,219

TOTAL INVESTMENT IN REAL ESTATE	$	3,742,465	$	163,006	$	753,710	$	3,151,761	$	3,677,584	$	216,797	$	683,158	$	3,211,223

⁽¹⁾

⁽²⁾	Includes impairment of $11,484 recorded in the 4th Quarter 2009.

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

Page 24

Pennsylvania Real Estate Investment Trust

Property Redevelopment Summary as of June 30, 2010


NAME OF PROJECT LOCATION	PREIT’s PROJECTED SHARE OF COST ⁽¹⁾	PREIT’S INVESTMENT TO DATE	EXPECTED RETURN ON INCREMENTAL INVESTMENT	CONSTRUCTION START DATE	EXPECTED CONSTRUCTION COMPLETION
MIXED USE	(in millions)	(in millions)
Voorhees Town Center
Voorhees, NJ	$83.0	$68.8	7.8%	2007	2011

-Phase I

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

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

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

-Phase II

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

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

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

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

-Opening 16,000 sf of outparcel space.

-109 residential units open for leasing. A total of approximately 425 residential units to be constructed. The residential units are being constructed by our ground lessee and its affiliates.

-Net reduction in property GLA will be approximately 244,000 sf.

-Incremental return based on estimated net operating income in projected stabilization year of 2012.

⁽¹⁾	PREIT’s projected share of costs is net of any expected tenant reimbursements, parcel sales, tax credits or other incentives.

Page 25

Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)


	Three months ended June 30, 2010						Six months ended June 30, 2010
	Consolidated		Unconsolidated		Total		Consolidated		Unconsolidated			Total
Redevelopment projects with incremental
GLA and/or anchor replacement	$	2,816	$	223	$	3,039	$	4,191	$	819		$	5,010
New development projects		234		—		234		529		—			529
Tenant allowances		3,407		—		3,407		5,389		(18	)		5,371
Recurring capital expenditures:
CAM expenditures		552		3		555		576		47			623
Non-CAM expenditures		1,064		—		1,064		1,158		—			1,158

Total recurring capital expenditures		1,616		3		1,619		1,734		47			1,781

Total	$	8,073	$	226	$	8,299	$	11,843	$	848		$	12,691

Page 26

Pennsylvania Real Estate Investment Trust

Debt Analysis as of June 30, 2010

(in thousands)


Outstanding Debt
	Fixed Rate⁽¹⁾			% of Total Indebtedness		Variable Rate			% of Total Indebtedness		Total			% of Total Indebtedness
Consolidated mortgage loans payable⁽²⁾	$	1,764,521		69.9	%	$	33,766		1.3	%	$	1,798,287		71.2	%
Unconsolidated mortgage loans payable		131,385		5.2	%		48,252		1.9	%		179,637		7.1	%
Exchangeable notes⁽³⁾		133,151		5.3	%		—		0.0	%		133,151		5.3	%
Revolving Facility		—		0.0	%		—		0.0	%		—		0.0	%
Term Loans⁽⁴⁾		300,000		11.9	%		113,500		4.5	%		413,500		16.4	%

TOTAL OUTSTANDING DEBT	$	2,329,057		92.3	%	$	195,518		7.7	%	$	2,524,575		100.0	%

AVERAGE INTEREST RATE		5.74	%				2.74	%				5.63	%

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

⁽²⁾	Includes debt premium of $2,157

⁽³⁾	Includes debt discount of $3,749

⁽⁴⁾

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


Average Debt Balance
		Mortgage Debt ^{(1) (2)}			Revolving Facility			Term Loans			Exchangeable Notes		Exchangeable Notes Discount			TOTAL
Beginning Balance	3/31/2010	$	1,984,288		$	70,000		$	520,000		$	136,900	$	(4,209	)	$	2,706,979
Mortgage loan amortization, net			(5,759	)		—			—			—		—			(5,759	)
New River Valley Mall mortgage loan repayment			(750	)		—			—			—		—			(750	)
Lehigh Valley Mall mortgage loan repayment			(75,000	)		—			—			—		—			(75,000	)
Lehigh Valley Mall mortgage loan financing			70,000			—			—			—		—			70,000
Springfield East/Springfield Park mortgage loan financing			5,000			—			—			—		—			5,000
Red Rose Commons mortgage loan draw			145			—			—			—		—			145
Revolving Facility repayment			—			(70,000	)		—			—		—			(70,000	)
Term Loan repayment			—			—			(106,500	)		—		—			(106,500	)
Exchangeable notes discount amortization			—			—			—			—		460			460

Ending Balance	6/30/2010	$	1,977,924		$	—		$	413,500		$	136,900	$	(3,749	)	$	2,524,575

Weighted Average Balance		$	1,984,207		$	29,853		$	456,802		$	136,900	$	(4,056	)	$	2,603,706

⁽¹⁾	Includes debt premium.

⁽²⁾	Includes the amortization of debt premium and balloon payments.


Debt Maturities⁽¹⁾
Year	Scheduled Amortization		Debt Premium Amortization		Mortgage Balance at Maturity		Revolving Facility		Term Loans		Exchangeable Notes		Exchangeable Notes Discount Amortization			Total Debt
2010	$	11,527	$	588	$	79,868	$	—	$	—	$	—	$	(940	)	$	91,043
2011		23,119		1,153		175,050		—		—		—		(1,960	)		197,362
2012		20,188		416		378,679		—		—		136,900		(849	)		535,334
2013		14,782		—		431,973		—		413,500		—		—			860,255
2014		13,181		—		99,203		—		—		—		—			112,384
2015		12,073		—		275,280		—		—		—		—			287,353
2016		2,577		—		219,480		—		—		—		—			222,057
Thereafter		6,120		—		212,667		—		—		—		—			218,787

	$	103,567	$	2,157	$	1,872,200	$	—	$	413,500	$	136,900	$	(3,749	)	$	2,524,575

⁽¹⁾

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


Weighted Average Mortgage Interest Rates
	Interest Rate				Marked to Market Interest Rate (GAAP) ⁽¹⁾
Year	Balance		Interest Rate		Balance		Interest Rate
2010		80,088	4.69	%		80,088	4.69	%
2011		177,020	5.93	%		177,020	5.93	%
2012		394,020	6.05	%		394,020	5.68	%
2013		440,240	5.47	%		440,240	5.47	%
2014		104,238	7.28	%		104,238	7.28	%
2015		310,021	5.80	%		310,021	5.80	%
Thereafter		470,140	5.60	%		470,140	5.60	%

Total	$	1,975,767	5.73	%	$	1,975,767	5.66	%

⁽¹⁾	Excludes amortization of debt issuance costs.

Page 27

Pennsylvania Real Estate Investment Trust

Debt Schedule as of June 30, 2010

(in thousands)


		Proportionate Share⁽¹⁾							Interest Rate		Marked to Market Interest Rate (GAAP)		Annual Debt Service
	Lender	Debt		Debt Premium/ (Discount)			Total		Interest Rate		Marked to Market Interest Rate (GAAP)		Annual Debt Service		Balance at Maturity		Maturity Date
Fixed Rate Debt
Valley View Mall⁽²⁾	CMBS	$	33,846	$	—		$	33,846	6.15	%	6.15	%	$	2,773	$	33,625	Oct 2010
Christiana Center^{(3) (4)}	Bank		45,000		—			45,000	5.87	%	5.87	%		2,642		45,000	June 2011
Paxton Towne Centre^{(3) (4)}	Bank		54,000		—			54,000	5.84	%	5.84	%		3,152		54,000	July 2011
The Court at Oxford Valley	Life Insurance Co		16,996		—			16,996	8.02	%	8.02	%		2,319		16,003	July 2011
Metroplex Shopping Center	CMBS		29,498		—			29,498	7.25	%	7.25	%		2,681		28,785	Nov 2011
Capital City Mall	CMBS		49,235		1,362			50,597	7.61	%	5.50	%		4,603		47,298	Feb 2012
New River Valley Center^{(3) (4)}	Bank		15,902		—			15,902	5.75	%	5.75	%		1,237		15,334	Mar 2012
Beaver Valley Mall	CMBS		43,657		—			43,657	7.36	%	7.36	%		3,972		42,266	Apr 2012
Pavilion East Associates⁽³⁾	Bank		3,964		—			3,964	6.15	%	6.15	%		244		3,708	Aug 2012
Cherry Hill Mall	Life Insurance Co		185,881		—			185,881	5.42	%	5.42	%		13,510		177,689	Oct 2012
Cherry Hill Mall Supplemental Loan	Life Insurance Co		54,758		—			54,758	5.51	%	5.51	%		3,030		53,003	Oct 2012
Cumberland Mall Loan #1	CMBS		40,623		795			41,418	6.50	%	5.40	%		3,413		38,782	Nov 2012
New River Valley Mall⁽³⁾	Bank		25,000		—			25,000	6.33	%	6.33	%		1,583		25,000	Jan 2013
Dartmouth Mall	CMBS		61,905		—			61,905	4.95	%	4.95	%		4,484		57,594	June 2013
Moorestown Mall	CMBS		56,820		—			56,820	4.95	%	4.95	%		4,115		52,863	June 2013
Jacksonville Mall^{(3) (4)}	Bank		56,265		—			56,265	5.83	%	5.83	%		3,277		56,265	Sept 2013
Logan Valley Mall^{(3) (4)}	Bank		68,000		—			68,000	5.79	%	5.79	%		3,939		68,000	Sept 2013
Wyoming Valley Mall^{(3) (4)}	Bank		65,000		—			65,000	5.85	%	5.85	%		3,803		65,000	Sept 2013
Francis Scott Key Mall⁽³⁾	Bank		55,000		—			55,000	5.25	%	5.25	%		2,885		55,000	Dec 2013
Viewmont Mall⁽³⁾	Bank		48,000		—			48,000	5.25	%	5.25	%		2,518		48,000	Dec 2013
Exton Square Mall	Life Insurance Co		69,162		—			69,162	7.50	%	7.50	%		5,873		66,733	Jan 2014
Lycoming Mall	Bank		35,076		—			35,076	6.84	%	6.84	%		3,001		32,637	Jul 2014
Springfield East⁽³⁾	Bank		2,296		—			2,296	5.39	%	5.39	%		168		2,061	March 2015
Springfield Park⁽³⁾	Bank		2,695		—			2,695	5.39	%	5.39	%		197		2,419	March 2015
Magnolia Mall	CMBS		61,264		—			61,264	5.33	%	5.33	%		4,413		54,842	July 2015
Patrick Henry Mall	Life Insurance Co		94,206		—			94,206	6.34	%	6.34	%		7,743		83,210	Oct 2015
Willow Grove Park	Life Insurance Co		149,560		—			149,560	5.65	%	5.65	%		11,083		132,624	Dec 2015
Valley Mall	CMBS		87,347		—			87,347	5.49	%	5.49	%		5,014		78,996	Mar 2016
Woodland Mall	CMBS		154,216		—			154,216	5.58	%	5.58	%		10,760		140,484	Apr 2016
The Mall at Prince Georges	CMBS		150,000		—			150,000	5.51	%	5.51	%		8,269		150,000	June 2017
Whitehall Mall	Life Insurance Co		5,936		—			5,936	7.00	%	7.00	%		574		4,148	Nov 2018
Cumberland Mall Loan #2	Bank		2,641		—			2,641	5.00	%	5.00	%		390		—	Dec 2018
Lehigh Valley Mall	Life Insurance Co		70,000		—			70,000	5.88	%	5.88	%		4,972		58,519	July 2020

Total Fixed Rate Debt			1,893,749		2,157			1,895,906	5.86	%	5.78	%		132,636		1,789,888

Variable Rate Debt
One Cherry Hill Plaza⁽⁵⁾	Bank		5,616		—			5,616	1.65	%	1.65	%		93		5,616	Aug 2010
Pitney Road Plaza⁽⁶⁾	Bank		4,476		—			4,476	5.00	%	5.00	%		224		4,476	Dec 2010
Springfield Mall	Bank		36,150		—			36,150	1.45	%	1.45	%		526		36,150	Dec 2010
Creekview Center⁽⁷⁾	Bank		19,424		—			19,424	2.43	%	2.43	%		1,080		19,184	June 2011
Red Rose Commons⁽⁸⁾	Bank		12,102		—			12,102	6.00	%	6.00	%		718		12,102	Oct 2011
New River Valley Mall	Bank		4,250		—			4,250	4.88	%	4.88	%		207		4,250	Jan 2013

Total Variable Rate Debt			82,018		—			82,018	2.74	%	2.74	%		2,847		81,778

Total Debt		$	1,975,767	$	2,157		$	1,977,924	5.73	%	5.66	%	$	135,483	$	1,871,666

CONSOLIDATED MORTGAGE LOANS		$	1,796,130	$	2,157		$	1,798,287	5.80	%	5.62	%	$	123,085	$	1,707,771
UNCONSOLIDATED MORTGAGE LOANS			179,637		—			179,637	5.45	%	5.45	%		12,398		163,895
EXCHANGEABLE NOTES			136,900		(3,749	)		133,151	4.00	%	4.00	%		5,476		136,900	May 2012
REVOLVING FACILITY^{(9) (10)}			—		—			—	5.28	%	5.28	%		—		—	March 2013
TERM LOAN - FIXED RATE^{(9) (11)}			300,000		—			300,000	5.90	%	5.90	%		17,692		300,000	March 2013
TERM LOAN - VARIABLE RATE⁽⁹⁾			113,500		—			113,500	5.28	%	5.28	%		5,993		113,500	March 2013

Total		$	2,526,167	$	(1,592	)	$	2,524,575	5.63	%	5.49	%	$	164,644	$	2,422,066

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

⁽²⁾	The mortgage loan was refinanced in July 2010 The new mortgage loan has a ten year term and expires in July 2020.

⁽³⁾	The mortgage loan has been swapped to the fixed interest rate presented.

⁽⁴⁾	The mortgage loan has two one-year extension options.

⁽⁵⁾	The mortgage loan has two one-year extension options. The first option was exercised in June 2009 for the period August 2009 to August 2010. The second option was exercised in July 2010 for the period August 2010 to August 2011.

⁽⁶⁾	The loan has one six-month extension during the construction period, which was exercised in April 2010. We have the option to convert the loan to a two year loan at the end of the construction period. The construction period ends in December 2010.

⁽⁷⁾	The mortgage loan has three one-year extension options. The first extension option was exercised in March 2010.

⁽⁸⁾	The mortgage loan has one one-year extension option.

⁽⁹⁾	Secured by first mortgage liens on 22 properties and a second mortgage lien on one property. See page 29 for property detail.

⁽¹⁰⁾	The total available to borrow against the 2010 Revolving Facility is $148.5 million.

⁽¹¹⁾

Page 28

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios⁽¹⁾


	June 30, 2010
Consolidated Liabilities to Gross Asset Value	67.74	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 75%

EBITDA to Interest Expense	1.91
EBITDA may not be less than 1.60 to 1.00

Adjusted EBITDA to Fixed Charges	1.63
Adjusted EBITDA may not be less than 1.35 to 1.00

Corporate Debt Yield	10.60	%
The ratio of EBITDA to total indebtedness may not be less than 9.50%.

Facility Debt Yield	10.90	%
The ratio of NOI for Collateral Properties to Facility Amount


Collateral Properties⁽²⁾

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

⁽¹⁾

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

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

Page 29

Pennsylvania Real Estate Investment Trust

Shareholder Information


Ten Largest Institutional Shareholders:	Common Shares Held⁽¹⁾
Vanguard Group, Inc.	4,317,155
BlackRock Institutional Trust Company, N.A.	3,256,546
State Street Global Advisors (US)	1,599,095
Goldman Sachs Asset Management (US)	1,130,334
Pacific Heights Asset Management, LLC	900,000
JP Morgan Asset Management	816,733
Force Capital Management LLC	650,000
Veritable, L.P.	551,792
OppenheimerFunds, Inc.	512,500
Northern Trust Investments, N.A.	508,047

*TOTAL of Ten Largest Institutional:*	14,242,202
*TOTAL of all Institutional Holders:*	25,222,314
*Ten Largest as % of Total Institutional:*	56.5	%

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


Breakdown of Share & Unit Ownership: Shares Held	Most Recent	% of Outstanding		December 31, 2009
Institutional⁽¹⁾	25,222,314	43.8	%	24,266,770
Equity offering shares⁽²⁾	10,350,000	17.9	%	—
Retail⁽³⁾	16,941,077	29.4	%	18,359,983
Insiders⁽⁴⁾	5,133,095	8.9	%	4,317,448

*TOTAL*	57,646,486	100.0	%	46,944,201

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

⁽²⁾	Shares issued in May 4 equity offering. Ownership information will be available in the Third Quarter of 2010.

⁽³⁾	Retail ownership equals total shares outstanding minus institutional and insider ownership.

⁽⁴⁾	Insider holdings as of June 30, 2010 (Shares and OP Units only). Excludes 136,025 exercisable options. See proxy statement dated April 29, 2010 for more details.

Page 30

Pennsylvania Real Estate Investment Trust

Definitions

Funds From Operations (FFO)

The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations, which is a non-GAAP measure, as income before gains (losses) on sales of operating properties and extraordinary items (computed in accordance with GAAP); plus real estate depreciation; plus or minus adjustments for unconsolidated partnerships to reflect funds from operations on the same basis. The Company computes Funds From Operations by taking the amount determined pursuant to the NAREIT definition and subtracting dividends on preferred shares (“FFO”)(for periods during which the Company had preferred shares outstanding).

Funds From Operations is a commonly used measure of operating performance and profitability in the REIT industry and we use FFO as a supplemental non-GAAP measure to compare our Company’s performance to that of our industry peers. Similarly, FFO per diluted share is a measure that is useful because it reflects the dilutive impact of outstanding convertible securities. In addition, we use FFO and FFO per diluted share as a performance measure for determining bonus amounts earned under certain of our performance-based executive compensation programs. The Company computes FFO in accordance with standards established by NAREIT, less dividends on preferred shares (for periods during which the Company had preferred shares outstanding), which may not be comparable to Funds From Operations reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than the Company. FFO does not include gains or losses on the sale of operating real estate assets, which are included in the determination of net income in accordance with GAAP. Accordingly, FFO is not a comprehensive measure of our operating cash flows. In addition, since FFO does not include depreciation on real estate assets, FFO may not be a useful performance measure when comparing our operating performance to that of other non-real estate commercial enterprises. We compensate for these limitations by using FFO in conjunction with other GAAP financial performance measures, such as net income and net cash provided by operating activities, and other non-GAAP financial performance measures, such as net operating income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s financial performance, or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is it indicative of funds available for the Company’s cash needs, including its ability to make cash distributions.

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

Net Operating Income (NOI)

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

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

Funds Available for Distribution (FAD)

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

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

Page 31

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