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 September 30, 2011

www.preit.com

NYSE: PEI

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

September 30, 2011

Table of Contents

Introduction
Company Information	1
Press Release Announcements	2
Market Capitalization and Capital Resources	3
Operating Results
Statement of Operations - Proportionate Consolidation Method - Quarters Ended September 30, 2011 and September 30, 2010	4
Statement of Operations - Proportionate Consolidation Method - Nine Months Ended September 30, 2011 and September 30, 2010	5
Net Operating Income - Quarters Ended September 30, 2011 and September 30, 2010	6
Net Operating Income - Nine Months Ended September 30, 2011 and September 30, 2010	7
Computation of Earnings Per Share	8
Funds From Operations and Funds Available for Distribution - Quarters Ended September 30, 2011 and September 30, 2010	9
Funds From Operations and Funds Available for Distribution - Nine Months Ended September 30, 2011 and September 30, 2010	10
Operating Statistics
Leasing Activity Summary	11
Summarized Rent Per Square Foot and Occupancy Percentages	12
Mall Sales and Rent Per Square Foot	13
Mall Occupancy - Owned GLA	14
Strip and Power Center Rent Per Square Foot and Occupancy Percentages	15
Top Twenty Tenants	16
Lease Expirations	17
Retail Gross Leasable Area Occupancy Summary	18
Property Information	19
Balance Sheet
Balance Sheet - Proportionate Consolidation Method	22
Balance Sheet - Property Type	23
Investment in Real Estate	24
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; 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 net effective 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, 2010. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

Pennsylvania Real Estate Investment Trust

Company Information

Background

Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls. As of September 30, 2011 the Company's 49 properties included 38 shopping malls, eight strip and power centers, and three development properties. These properties are located in 13 states in the eastern half of the United States, primarily in the Mid-Atlantic region. The operating retail properties have a total of approximately 33.0 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

Year End 2011                        February 2012

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	Cedrik Lachance	(949) 640-8780
	Daniel J. Busch	(949) 640-8780
JP Morgan	Michael W. Mueller	(212) 622-6689
Keefe, Bruyette, & Woods	Ben Yang	(415) 591-1631
Sidoti & Company, LLC	Jeffrey Lau	(212) 453-7029
Stifel Nicolaus	Nathan Isbee	(443) 224-1346
	Jennifer Hummert	(443) 224-1288

Page 1

Pennsylvania Real Estate Investment Trust

Press Release Announcements

Dividends and Distributions:

October 20, 2011- PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.15 per common share.

August 9, 2011 - PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.15 per common share.

Acquisitions, dispositions, development and redevelopment activities:

July 28, 2011 - PREIT announced that new retailers are joining PREIT malls.

July 28, 2011 - PREIT announced that jcpenney, Nordstrom Rack, Bravo Cucina Italiana and Forever 21 have signed leases at Willow Grove Park in Willow Grove, PA.

Other activities:

October 13, 2011 - PREIT scheduled its Third Quarter 2011 earnings call for Thursday, October 27, 2011.

July 12, 2011 - PREIT scheduled its Second Quarter 2011 earnings call for Thursday, July 28, 2011.

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

Page 2

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands, except per share amounts)

	Quarter Ended September 30,						Year Ended December 31,
	2011			2010			2010			2009
TRADING INFORMATION
High Price per share	$	16.55		$	13.90		$	17.35		$	9.13
Low Price per share	$	7.72		$	10.03		$	8.35		$	2.20
Closing Share Price (at the end of period)	$	7.73		$	11.86		$	14.53		$	8.46
MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding		55,669			55,376			55,436			44,615
OP Units Outstanding		2,329			2,329			2,329			2,329
Total Shares and OP Units Outstanding		57,998			57,705			57,765			46,944
Equity Market Capitalization—Shares and OP Units	$	448,479		$	684,416		$	839,327		$	397,148
DEBT CAPITALIZATION (1)
Secured Debt Balance (2)	$	2,244,892		$	2,273,998		$	2,265,572		$	1,956,193
Unsecured Debt Balance (3) (4)		136,900			136,900			136,900			792,900
Debt Capitalization		2,381,792			2,410,898			2,402,472			2,749,093
TOTAL MARKET CAPITALIZATION	$	2,830,271		$	3,095,314		$	3,241,799		$	3,146,241
Equity Capitalization/Total Market Capitalization		15.8	%		22.1	%		25.9	%		12.6	%
Debt Capitalization/Total Market Capitalization		84.2	%		77.9	%		74.1	%		87.4	%
Unsecured Debt Balance/Total Debt		5.7	%		5.7	%		5.7	%		28.8	%
DISTRIBUTIONS PER COMMON SHARE
Ordinary Income		(5	)	$	0.15		$	0.60		$	0.63
Capital Gain		(5	)		-			-		$	0.11
Return of Capital/Non-Taxable		(5	)		-			-			-
Distributions per share	$	0.15		$	0.15		$	0.60		$	0.74
Annualized Dividend Yield(6)		7.8	%		5.1	%		4.1	%		8.7	%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	36,205		$	47,694		$	47,107		$	77,147
Revolving Credit Facility		250,000			150,000			150,000			500,000
Amount Outstanding		(55,000	)		-			-			(486,000	)
Letters of Credit		-			(1,534	)		(1,534	)		(3,030	)
Available Revolving Credit Facility(7)		195,000			148,466			148,466			10,970
TOTAL	$	231,205		$	196,160		$	195,573		$	88,117
Shelf Registration	$	831,812		$	831,812		$	831,812		$	1,000,000

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

⁽²⁾  The secured debt balance includes $240,000 in Term Loans and $55,000 outstanding under the Revolving Credit Facility as of September 30, 2011.

⁽³⁾  The unsecured debt balance included $170,000 in a senior unsecured 2008 Term Loan and $486,000 in outstanding Credit Facility borrowings for the year ended December 31, 2009.

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

⁽⁵⁾  Tax status of 2011 dividend payments will be available in January 2012.

⁽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 - Quarters Ended September 30, 2011 and September 30, 2010

Proportionate Consolidation Method

(in thousands)

	Quarter Ended September 30, 2011											Quarter Ended September 30, 2010
	GAAP			Share of unconsolidated partnerships (1)			Discontinued operations		Total			GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total
REVENUE:
Base rent	$	71,797		$	6,403		$	-	$	78,200		$	71,842		$	6,371		$	2,508		$	80,721
Expense reimbursements		33,597			2,494			-		36,091			33,571			2,503			639			36,713
Percentage rent		805			57			-		862			767			35			-			802
Lease termination revenue		143			54			-		197			370			-			-			370
Other real estate revenue		3,420			308			-		3,728			3,301			347			2			3,650
Real estate revenue		109,762			9,316			-		119,078			109,851			9,256			3,149			122,256
Interest and other income		3,981			-			-		3,981			2,804			-			-			2,804
Total revenue		113,743			9,316			-		123,059			112,655			9,256			3,149			125,060
EXPENSES:
Operating expenses:
CAM and real estate taxes		(35,448	)		(1,894	)		-		(37,342	)		(35,683	)		(1,904	)		(592	)		(38,179	)
Utilities		(6,987	)		(212	)		-		(7,199	)		(7,587	)		(271	)		(4	)		(7,862	)
Other operating expenses		(5,363	)		(543	)		-		(5,906	)		(6,926	)		(640	)		(137	)		(7,703	)
Total operating expenses		(47,798	)		(2,649	)		-		(50,447	)		(50,196	)		(2,815	)		(733	)		(53,744	)
Depreciation and amortization		(34,681	)		(1,866	)		-		(36,547	)		(41,673	)		(2,020	)		(1,306	)		(44,999	)
Other expenses:
General and administrative expenses		(8,495	)		-			-		(8,495	)		(8,958	)		-			-			(8,958	)
Impairment of assets		(52,110	)		-			-		(52,110	)		-			-			-			-
Project costs and other expenses		(161	)		-			-		(161	)		(558	)		-			-			(558	)
Total other expenses		(60,766	)		-			-		(60,766	)		(9,516	)		-			-			(9,516	)
Interest expense, net(2)		(31,846	)		(2,877	)		-		(34,723	)		(36,384	)		(2,566	)		(674	)		(39,624	)
Total expenses		(175,091	)		(7,392	)		-		(182,483	)		(137,769	)		(7,401	)		(2,713	)		(147,883	)
Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate		(61,348	)		1,924			-		(59,424	)		(25,114	)		1,855			436			(22,823	)
Equity in income of partnerships		1,924			(1,924	)		-		-			1,855			(1,855	)		-			-
Loss from continuing operations		(59,424	)		-			-		(59,424	)		(23,259	)		-			436			(22,823	)
Discontinued operations:
Operating results from discontinued operations		-			-			-		-			436			-			(436	)		-
Gains on sales of discontinued operations		-			-			-		-			19,151			-			-			19,151
Income from discontinued operations		-			-			-		-			19,587			-			(436	)		19,151
Net loss		(59,424	)		-			-		(59,424	)		(3,672	)		-			-			(3,672	)
Less: net loss attributable to noncontrolling interest		2,386			-			-		2,386			87			-			-			87
Net loss attributable to PREIT	$	(57,038	)	$	-		$	-	$	(57,038	)	$	(3,585	)	$	-		$	-		$	(3,585	)

⁽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 $707 and $504 for the quarters ended September 30, 2011 and 2010, respectively.

Page 4

Pennsylvania Real Estate Investment Trust

Statement of Operations - Nine Months Ended September 30, 2011 and September 30, 2010

Proportionate Consolidation Method

(in thousands)

	Nine Months Ended September 30, 2011											Nine Months Ended September 30, 2010
	GAAP			Share of unconsolidated partnerships (1)			Discontinued operations		Total			GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total
REVENUE:
Base rent	$	214,489		$	19,143		$	-	$	233,632		$	214,696		$	19,135		$	7,739		$	241,570
Expense reimbursements		98,714			7,635			-		106,349			99,980			7,909			1,750			109,639
Percentage rent		2,501			78			-		2,579			2,292			62			-			2,354
Lease termination revenue		862			53			-		915			2,551			275			-			2,826
Other real estate revenue		10,150			950			-		11,100			9,762			910			8			10,680
Real estate revenue		326,716			27,859			-		354,575			329,281			28,291			9,497			367,069
Interest and other income		5,708			-			-		5,708			4,130			-			-			4,130
Total revenue		332,424			27,859			-		360,283			333,411			28,291			9,497			371,199
EXPENSES:
Operating expenses:
CAM and real estate taxes		(108,012	)		(6,259	)		-		(114,271	)		(107,183	)		(6,312	)		(1,904	)		(115,399	)
Utilities		(18,896	)		(637	)		-		(19,533	)		(20,053	)		(688	)		(7	)		(20,748	)
Other operating expenses		(17,450	)		(1,642	)		-		(19,092	)		(19,063	)		(1,814	)		(196	)		(21,073	)
Total operating expenses		(144,358	)		(8,538	)		-		(152,896	)		(146,299	)		(8,814	)		(2,107	)		(157,220	)
Depreciation and amortization		(105,806	)		(6,193	)		-		(111,999	)		(122,677	)		(6,581	)		(3,907	)		(133,165	)
Other expenses:
General and administrative expenses		(28,511	)		-			-		(28,511	)		(28,261	)		-			-			(28,261	)
Impairment of assets		(52,335	)		-			-		(52,335	)		-			-			-			-
Project costs and other expenses		(433	)		-			-		(433	)		(1,012	)		-			-			(1,012	)
Total other expenses		(81,279	)		-			-		(81,279	)		(29,273	)		-			-			(29,273	)
Interest expense, net (2)		(100,400	)		(8,514	)		-		(108,914	)		(108,588	)		(6,002	)		(1,926	)		(116,516	)
Total expenses		(431,843	)		(23,245	)		-		(455,088	)		(406,837	)		(21,397	)		(7,940	)		(436,174	)
Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate		(99,419	)		4,614			-		(94,805	)		(73,426	)		6,894			1,557			(64,975	)
Equity in income of partnerships		4,614			(4,614	)		-		-			6,894			(6,894	)		-			-
Gains on sales of real estate		1,450			-			-		1,450			-			-			-			-
Loss from continuing operations		(93,355	)		-			-		(93,355	)		(66,532	)		-			1,557			(64,975	)
Discontinued operations
Operating results from discontinued operations		-			-			-		-			1,557			-			(1,557	)		-
Gains on sales of discontinued operations		-			-			-		-			19,151			-			-			19,151
Income from discontinued operations		-			-			-		-			20,708			-			(1,557	)		19,151
Net loss		(93,355	)		-			-		(93,355	)		(45,824	)		-			-			(45,824	)
Less: net loss attributable to noncontrolling interests		3,751			-			-		3,751			1,928			-			-			1,928
Net loss attributable to PREIT	$	(89,604	)	$	-		$	-	$	(89,604	)	$	(43,896	)	$	-		$	-		$	(43,896	)

⁽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 $1,442 and $1,959 for the nine months ended September 30, 2011 and 2010, respectively.

Page 5

Pennsylvania Real Estate Investment Trust

Net Operating Income ⁽¹⁾ - Quarters Ended September 30, 2011 and 2010

(in thousands)

	Quarter Ended September 30, 2011									Quarter Ended September 30, 2010
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	77,872		$	328		$	78,200		$	77,801		$	2,920		$	80,721
Expense reimbursements		36,081			10			36,091			36,063			650			36,713
Percentage rent		862			-			862			802			-			802
Lease termination revenue		197			-			197			370			-			370
Other real estate revenue		3,609			119			3,728			3,536			114			3,650
TOTAL REAL ESTATE REVENUE		118,621			457			119,078			118,572			3,684			122,256
Operating expenses:
CAM and real estate taxes		(36,958	)		(384	)		(37,342	)		(37,243	)		(936	)		(38,179	)
Utilities		(7,199	)		-			(7,199	)		(7,861	)		(1	)		(7,862	)
Other operating expenses		(5,917	)		11			(5,906	)		(7,501	)		(202	)		(7,703	)
TOTAL OPERATING EXPENSES		(50,074	)		(373	)		(50,447	)		(52,605	)		(1,139	)		(53,744	)
NET OPERATING INCOME	$	68,547		$	84		$	68,631		$	65,967		$	2,545		$	68,512
	Quarter Ended September 30, 2011									Quarter Ended September 30, 2010
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	72,081		$	5,791		$	77,872		$	71,925		$	5,876		$	77,801
Expense reimbursements		34,938			1,143			36,081			34,834			1,229			36,063
Percentage rent		808			54			862			771			31			802
Lease termination revenue		197			-			197			370			-			370
Other real estate revenue		3,568			41			3,609			3,485			51			3,536
TOTAL REAL ESTATE REVENUE		111,592			7,029			118,621			111,385			7,187			118,572
Operating expenses:
CAM and real estate taxes		(35,806	)		(1,152	)		(36,958	)		(36,083	)		(1,160	)		(37,243	)
Utilities		(7,128	)		(71	)		(7,199	)		(7,771	)		(90	)		(7,861	)
Other operating expenses		(5,816	)		(101	)		(5,917	)		(7,317	)		(184	)		(7,501	)
TOTAL OPERATING EXPENSES		(48,750	)		(1,324	)		(50,074	)		(51,171	)		(1,434	)		(52,605	)
NET OPERATING INCOME	$	62,842		$	5,705		$	68,547		$	60,214		$	5,753		$	65,967

⁽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⁾ - Nine Months Ended September 30, 2011 and 2010

(in thousands)

	Nine Months Ended September 30, 2011									Nine Months Ended September 30, 2010
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	232,613		$	1,019		$	233,632		$	232,631		$	8,939		$	241,570
Expense reimbursements		106,319			30			106,349			107,851			1,788			109,639
Percentage rent		2,579			-			2,579			2,354			-			2,354
Lease termination revenue		915			-			915			2,826			-			2,826
Other real estate revenue		10,738			362			11,100			10,322			358			10,680
TOTAL REAL ESTATE REVENUE		353,164			1,411			354,575			355,984			11,085			367,069
Operating expenses:
CAM and real estate taxes		(113,068	)		(1,203	)		(114,271	)		(112,469	)		(2,930	)		(115,399	)
Utilities		(19,533	)		-			(19,533	)		(20,744	)		(4	)		(20,748	)
Other operating expenses		(18,971	)		(121	)		(19,092	)		(20,728	)		(345	)		(21,073	)
TOTAL OPERATING EXPENSES		(151,572	)		(1,324	)		(152,896	)		(153,941	)		(3,279	)		(157,220	)
NET OPERATING INCOME	$	201,592		$	87		$	201,679		$	202,043		$	7,806		$	209,849
	Nine Months Ended September 30, 2011									Nine Months Ended September 30, 2010
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	215,899		$	16,714		$	232,613		$	215,598		$	17,033		$	232,631
Expense reimbursements		102,551			3,768			106,319			103,878			3,973			107,851
Percentage rent		2,509			70			2,579			2,332			22			2,354
Lease termination revenue		300			615			915			2,826			-			2,826
Other real estate revenue		10,580			158			10,738			10,162			160			10,322
TOTAL REAL ESTATE REVENUE		331,839			21,325			353,164			334,796			21,188			355,984
Operating expenses:
CAM and real estate taxes		(109,133	)		(3,935	)		(113,068	)		(108,356	)		(4,113	)		(112,469	)
Utilities		(19,332	)		(201	)		(19,533	)		(20,552	)		(192	)		(20,744	)
Other operating expenses		(18,515	)		(456	)		(18,971	)		(20,216	)		(512	)		(20,728	)
TOTAL OPERATING EXPENSES		(146,980	)		(4,592	)		(151,572	)		(149,124	)		(4,817	)		(153,941	)
NET OPERATING INCOME	$	184,859		$	16,733		$	201,592		$	185,672		$	16,371		$	202,043

⁽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)

	Quarter Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Loss from continuing operations	$	(59,424	)	$	(23,259	)	$	(93,355	)	$	(66,532	)
Noncontrolling interest in continuing operations		2,386			878			3,751			2,719
Dividends on unvested restricted shares		(143	)		(174	)		(405	)		(441	)
Loss from continuing operations used to calculate earnings per share—basic and diluted	$	(57,181	)	$	(22,555	)	$	(90,009	)	$	(64,254	)
Income from discontinued operations	$	-		$	19,587		$	-		$	20,708
Noncontrolling interest in discontinued operations		-			(791	)		-			(791	)
Income from discontinued operations used to calculate earnings per share—basic and diluted	$	-		$	18,796		$	-		$	19,917
Basic loss per share
Loss from continuing operations	$	(1.05	)	$	(0.42	)	$	(1.65	)	$	(1.30	)
Income from discontinued operations		-			0.35			-			0.40
	$	(1.05	)	$	(0.07	)	$	(1.65	)	$	(0.90	)
Diluted loss per share
Loss from continuing operations	$	(1.05	)	$	(0.42	)	$	(1.65	)	$	(1.30	)
Income from discontinued operations		-			0.35			-			0.40
	$	(1.05	)	$	(0.07	)	$	(1.65	)	$	(0.90	)
Weighted average common shares outstanding		55,673			55,351			55,605			50,502
Weighted average unvested restricted shares		(972	)		(1,151	)		(993	)		(1,067	)
Weighted average shares outstanding—basic		54,701			54,200			54,612			49,435
Weighted average effect of common share equivalents(1)		-			-			-			-
Total weighted average shares outstanding—diluted		54,701			54,200			54,612			49,435

(1) The Company had net losses from continuing operations for all periods presented. Therefore, the effect of common share equivalents of 165 and 528 for the quarters ended September 30, 2011 and 2010, respectively, and 305 and 407 for the nine months ended September 30, 2011 and 2010, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive.

Page 8

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)

	Quarter Ended September 30, 2011											Quarter Ended September 30, 2010
FUNDS FROM OPERATIONS (FFO)	Consolidated			Share of unconsolidated partnerships			Discontinued operations		Total			Consolidated			Share of unconsolidated partnerships			Discontinued operations			Total
Real estate revenue (1)	$	109,762		$	9,316		$	-	$	119,078		$	109,851		$	9,256		$	3,149		$	122,256
Operating expenses		(47,798	)		(2,649	)		-		(50,447	)		(50,196	)		(2,815	)		(733	)		(53,744	)
NET OPERATING INCOME		61,964			6,667			-		68,631			59,655			6,441			2,416			68,512
General and administrative expenses		(8,495	)		-			-		(8,495	)		(8,958	)		-			-			(8,958	)
Impairment of assets		(52,110	)		-			-		(52,110	)		-			-			-			-
Interest and other income		3,981			-			-		3,981			2,804			-			-			2,804
Project costs and other expenses		(161	)		-			-		(161	)		(558	)		-			-			(558	)
Interest expense, net		(31,846	)		(2,877	)		-		(34,723	)		(36,384	)		(2,566	)		(674	)		(39,624	)
Depreciation on non real estate assets		(207	)		-			-		(207	)		(342	)		-			-			(342	)
FFO		(26,874	)		3,790			-		(23,084	)		16,217			3,875			1,742			21,834
Depreciation on real estate assets		(34,474	)		(1,866	)		-		(36,340	)		(41,331	)		(2,020	)		(1,306	)		(44,657	)
Equity in income of partnerships		1,924			(1,924	)		-		-			1,855			(1,855	)		-			-
Income from discontinued operations		-			-			-		-			436			-			(436	)		-
Gains on sales of discontinued operations		-			-			-		-			19,151			-			-			19,151
Net loss	$	(59,424	)	$	-		$	-	$	(59,424	)	$	(3,672	)	$	-		$	-		$	(3,672	)
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	(26,874	)	$	3,790		$	-	$	(23,084	)	$	16,217		$	3,875		$	1,742		$	21,834
Adjustments:
Straight line rent		(260	)		42			-		(218	)		(343	)		24			4			(315	)
Recurring capital expenditures		(5,311	)		(105	)		-		(5,416	)		(5,843	)		(9	)		-			(5,852	)
Tenant allowances		(4,586	)		(373	)		-		(4,959	)		(5,077	)		(443	)		-			(5,520	)
Capitalized leasing costs		(1,230	)		-			-		(1,230	)		(982	)		-			-			(982	)
Amortization of mortgage loan premium		(293	)		-			-		(293	)		(298	)		-			-			(298	)
Amortization of above- and below-market lease intangibles		57			(44	)		-		13			58			(61	)		-			(3	)
Amortization of exchangeable notes debt discount		493			-			-		493			467			-			-			467
Impairment of assets		52,110			-			-		52,110			-			-			-			-
FAD	$	14,106		$	3,310		$	-	$	17,416		$	4,199		$	3,386		$	1,746		$	9,331
Weighted average number of shares outstanding										54,701												54,200
Weighted average effect of full conversion of OP Units										2,329												2,329
Effect of common share equivalents										165												528
Total weighted average shares outstanding, including OP Units										57,195												57,057
FFO									$	(23,084	)										$	21,834
Impairment of assets										52,110												-
Accelerated amortization of deferred financing fees										-												1,394
FFO AS ADJUSTED									$	29,026											$	23,228
FFO PER DILUTED SHARE AND OP UNIT									$	(0.40	)										$	0.38
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED									$	0.51											$	0.41
FAD PER DILUTED SHARE AND OP UNIT									$	0.30											$	0.16
DIVIDEND PER COMMON SHARE									$	0.15											$	0.15
PAYOUT RATIOS
Payout ratio of FFO										68.9%	(2)											87.1%	(3)
Payout ratio of FFO as adjusted										33.4%	(2)											27.5%	(3)
Payout ratio of FAD										57.5%	(2)											42.9%	(3)

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

⁽²⁾  Twelve months ended September 30, 2011.

⁽³⁾  Payout ratio of FFO, as adjusted, and FAD for the twelve months ended September 30, 2010.

Page 9

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)

	Nine Months Ended September 30, 2011											Nine Months Ended September 30, 2010
FUNDS FROM OPERATIONS (FFO)	Consolidated			Share of unconsolidated partnerships			Discontinued operations		Total			Consolidated			Share of unconsolidated partnerships			Discontinued operations			Total
Real estate revenue(1)	$	326,716		$	27,859		$	-	$	354,575		$	329,281		$	28,291		$	9,497		$	367,069
Operating expenses		(144,358	)		(8,538	)		-		(152,896	)		(146,299	)		(8,814	)		(2,107	)		(157,220	)
NET OPERATING INCOME		182,358			19,321			-		201,679			182,982			19,477			7,390			209,849
General and administrative expenses		(28,511	)		-			-		(28,511	)		(28,261	)		-			-			(28,261	)
Impairment of assets		(52,335	)		-			-		(52,335	)		-			-			-			-
Interest and other income		5,708			-			-		5,708			4,130			-			-			4,130
Project costs and other expenses		(433	)		-			-		(433	)		(1,012	)		-			-			(1,012	)
Interest expense, net		(100,400	)		(8,514	)		-		(108,914	)		(108,588	)		(6,002	)		(1,926	)		(116,516	)
Gains on sales of non operating real estate		710			-			-		710			-			-			-			-
Depreciation on non real estate assets		(682	)		-			-		(682	)		(1,159	)		-			-			(1,159	)
FFO		6,415			10,807			-		17,222			48,092			13,475			5,464			67,031
Gains on sales of real estate		740			-			-		740			-			-			-			-
Depreciation on real estate assets		(105,124	)		(6,193	)		-		(111,317	)		(121,518	)		(6,581	)		(3,907	)		(132,006	)
Equity in income of partnerships		4,614			(4,614	)		-		-			6,894			(6,894	)		-			-
Income from discontinued operations		-			-			-		-			1,557			-			(1,557	)		-
Gains on sales of discontinued operations		-			-			-		-			19,151			-			-			19,151
Net loss	$	(93,355	)	$	-		$	-	$	(93,355	)	$	(45,824	)	$	-		$	-		$	(45,824	)
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	6,415		$	10,807		$	-	$	17,222		$	48,092		$	13,475		$	5,464		$	67,031
Adjustments:
Straight line rent		(95	)		184			-		89			(1,182	)		76			(88	)		(1,194	)
Recurring capital expenditures		(10,684	)		(248	)		-		(10,932	)		(7,577	)		(56	)		-			(7,633	)
Tenant allowances		(10,427	)		(374	)		-		(10,801	)		(10,466	)		(424	)		-			(10,890	)
Capitalized leasing costs		(3,754	)		-			-		(3,754	)		(3,123	)		-			-			(3,123	)
Amortization of mortgage loan premium		(868	)		-			-		(868	)		(885	)		-			-			(885	)
Amortization of above- and below-market lease intangibles		161			(135	)		-		26			178			(193	)		-			(15	)
Amortization of exchangeable notes debt discount		1,460			-			-		1,460			1,382			-			-			1,382
Impairment of assets		52,335			-			-		52,335			-			-			-			-	��
FAD	$	34,543		$	10,234		$	-	$	44,777		$	26,419		$	12,878		$	5,376		$	44,673
Weighted average number of shares outstanding										54,612												49,435
Weighted average effect of full conversion of OP Units										2,329												2,329
Effect of common share equivalents										305												407
Total weighted average shares outstanding, including OP Units										57,246												52,171
FFO									$	17,222											$	67,031
Impairment of assets										52,335												-
Accelerated amortization of deferred financing fees										-												3,652
FFO AS ADJUSTED									$	69,557											$	70,683
FFO PER DILUTED SHARE AND OP UNIT									$	0.30											$	1.28
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED									$	1.22											$	1.35
FAD PER DILUTED SHARE AND OP UNIT									$	0.78											$	0.86
DIVIDEND PER COMMON SHARE									$	0.45											$	0.45
PAYOUT RATIOS
Payout ratio of FFO										68.9%	(2)											87.1%	(3)
Payout ratio of FFO as adjusted										33.4%	(2)											27.5%	(3)
Payout ratio of FAD										57.5%	(2)											42.9%	(3)

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

⁽²⁾  Twelve months ended September 30, 2011.

⁽³⁾  Payout ratio of FFO, FFO as adjusted, and FAD for the twelve months ended September 30, 2010.

Page 10

Pennsylvania Real Estate Investment Trust

2011 Leasing Activity Summary

				Average Base Rent psf				Change in Base Rent psf
	Number	GLA		Previous		New		Dollar				Percentage			Annualized Tenant Improvements psf (1)
New Leases - Previously Leased Space:
1st Quarter(2)	21		77,140	$	22.24	$	19.68	$	(2.56	)			-11.5	%	$	1.39
2nd Quarter(3)	27		82,868		21.79		21.97		0.18				0.8	%		1.45
3rd Quarter(4)	30		102,554		24.39		18.87		(5.52	)	��		-22.6	%		0.82
Total/Average	78		262,562	$	22.94	$	20.09	$	(2.85	)			-12.4	%	$	1.19
New Leases - Previously Vacant Space:(5)
1st Quarter	20		86,463		N/A	$	16.86	$	16.86				N/A		$	2.05
2nd Quarter	39		110,003		N/A		18.38		18.38				N/A			3.40
3rd Quarter	41		225,145		N/A		16.56		16.56				N/A			2.28
Total/Average	100		421,611		N/A	$	17.09	$	17.09				N/A		$	2.53
Renewal:(6)
1st Quarter(2)	81		310,673	$	22.22	$	22.23	$	0.01				0.0	%	$	0.09
2nd Quarter(3)	92		321,947		22.37		22.89		0.52				2.3	%		0.05
3rd Quarter(4)	109		367,407		21.59		21.70		0.11				0.5	%		0.05
Total/Average	282		1,000,027	$	22.04	$	22.25	$	0.21				1.0	%	$	0.06
Anchor New:
1st Quarter	0		-		N/A	$	-	$	-				N/A		$	-
2nd Quarter	0		-		N/A		-		-				N/A			-
3rd Quarter	1		113,692		N/A		1.89		1.89				N/A			-
Total/Average	1		113,692		N/A	$	1.89	$	1.89				N/A		$	-
Anchor Renewal:
1st Quarter	5		367,162	$	2.73	$	2.73	$	-				0.0	%	$	-
2nd Quarter	4		436,916		2.40		2.40		-				0.0	%		-
3rd Quarter	1		155,392		1.56		1.56		-				0.0	%		-
Total/Average	10		959,470	$	2.39	$	2.39	$	-				0.0	%	$	-

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

(2) Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were -5.6% for New Leases—Previously Leased Space and -6.0% for Renewals.

(3) Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were 2.2% for New Leases—Previously Leased Space and -2.3% for Renewals.

(4) Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were -14.8% for New Leases—Previously Leased Space and 0.3% for Renewals.

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

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

Page 11

Pennsylvania Real Estate Investment Trust

Summarized Rent Per Square Foot and Occupancy Percentages

	September 30, 2011			September 30, 2010			Change
		Occupancy (1)			Occupancy (1)			Occupancy (1)
	Avg Base			Avg Base			Avg Base
	Rent	Total	Non-Anchor	Rent	Total	Non-Anchor	Rent	Total	Non-Anchor
Malls weighted average(2)	$    32.00	91.7%	87.3%	$    32.70	91.0%	87.3%	-2.1%	0.7%	0.0%
Strip and Power Centers weighted average	$    16.18	93.6%	90.6%	$    16.25	95.5%	93.4%	-0.4%	-1.9%	-2.8%
Retail Portfolio weighted average	$    28.55	91.9%	87.8%	$    28.92	91.5%	88.1%	-1.3%	0.4%	-0.3%
Consolidated Properties	$    30.02	91.6%	87.0%	$    30.68	91.0%	87.1%	-2.1%	0.6%	-0.1%
Unconsolidated Properties	$    23.50	93.9%	91.9%	$    23.20	95.2%	93.6%	1.3%	-1.3%	-1.7%
Same Properties	$    28.55	91.9%	87.8%	$    28.92	91.5%	88.1%	-1.3%	0.4%	-0.3%

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

⁽²⁾ Average base rent for tenants that lease individual spaces of 10,000 square feet or less and pay fixed rent. Average base rent for tenants greater than 10,000 square feet that pay fixed rent was $14.97/sq ft as of September 30, 2011 and $15.27/sq ft as of September 30, 2010.

Page 12

Pennsylvania Real Estate Investment Trust

Mall Sales and Rent Per Square Foot

				September 30, 2011							September 30, 2010							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		33.3	%
Cherry Hill Mall				$	46.66	$	577		13.4	%	$	46.45	$	536		13.7	%		0.5	%		7.6	%		-0.3	%
Lehigh Valley Mall					45.36		541		12.3	%		44.70		530		12.3	%		1.5	%		2.1	%		0.0	%
Woodland Mall					40.85		508		12.7	%		43.95		483		13.0	%		-7.0	%		5.2	%		-0.3	%
Jacksonville Mall					32.68		483		10.5	%		32.58		501		10.0	%		0.3	%		-3.6	%		0.5	%
Dartmouth Mall					30.23		403		11.3	%		30.68		352		12.4	%		-1.5	%		14.5	%		-1.1	%
Willow Grove Park					44.14		402		16.6	%		43.38		389		16.7	%		1.8	%		3.3	%		-0.1	%
Sales per square foot between $350 - $400		30.3	%
The Mall at Prince Georges					36.42		385		14.5	%		36.87		363		15.4	%		-1.2	%		6.1	%		-0.9	%
Patrick Henry Mall					40.23		384		13.9	%		39.40		402		13.9	%		2.1	%		-4.5	%		0.0	%
Viewmont Mall					29.37		374		12.9	%		29.74		366		13.1	%		-1.2	%		2.2	%		-0.2	%
Moorestown Mall					35.42		372		15.0	%		36.67		375		15.1	%		-3.4	%		-0.8	%		-0.1	%
Valley View Mall					29.96		368		12.1	%		30.39		359		11.8	%		-1.4	%		2.5	%		0.3	%
Valley Mall					25.12		368		11.0	%		26.43		308		12.1	%		-5.0	%		19.5	%		-1.1	%
The Gallery at Market East					36.63		368		14.8	%		38.09		353		13.7	%		-3.8	%		4.2	%		1.1	%
Wyoming Valley Mall					30.85		366		12.2	%		31.06		359		13.2	%		-0.7	%		1.9	%		-1.0	%
Springfield Mall					34.02		358		14.0	%		34.32		345		15.2	%		-0.9	%		3.8	%		-1.2	%
Capital City Mall					33.64		352		11.8	%		33.46		348		11.8	%		0.6	%		1.1	%		0.0	%
Sales per square foot between $300 - $349		16.6	%
Crossroads Mall					21.52		342		9.1	%		20.86		305		9.7	%		3.2	%		12.1	%		-0.6	%
Francis Scott Key Mall					27.32		338		11.7	%		27.33		330		11.7	%		-0.1	%		2.4	%		0.0	%
Magnolia Mall					27.87		326		12.8	%		26.91		311		13.2	%		3.5	%		4.8	%		-0.4	%
Exton Square Mall					36.35		326		13.9	%		37.84		317		14.8	%		-4.0	%		2.8	%		-0.9	%
Plymouth Meeting Mall					29.04		325		10.3	%		31.75		320		10.9	%		-8.6	%		1.6	%		-0.6	%
Cumberland Mall					28.56		313		13.3	%		28.47		306		13.7	%		0.3	%		2.3	%		-0.4	%
Logan Valley Mall					26.39		311		11.2	%		26.28		307		11.7	%		0.4	%		1.3	%		-0.5	%
Sales per square foot under $300		19.8	%
Palmer Park Mall					24.06		291		12.2	%		25.57		289		11.0	%		-5.9	%		0.7	%		1.2	%
Uniontown Mall					22.47		291		10.8	%		22.60		280		11.0	%		-0.5	%		3.9	%		-0.2	%
Gadsden Mall					21.37		288		9.4	%		21.59		273		8.9	%		-1.0	%		5.5	%		0.5	%
Wiregrass Commons Mall					25.49		283		10.9	%		27.11		277		11.7	%		-6.0	%		2.2	%		-0.8	%
New River Valley Mall					23.80		282		10.3	%		24.15		269		10.5	%		-1.5	%		4.8	%		-0.2	%
Nittany Mall					21.83		279		11.0	%		22.33		273		11.3	%		-2.3	%		2.2	%		-0.3	%
North Hanover Mall					25.85		267		12.4	%		28.06		270		12.6	%		-7.9	%		-1.1	%		-0.2	%
Lycoming Mall					21.26		265		10.3	%		21.21		252		10.1	%		0.2	%		5.2	%		0.2	%
Beaver Valley Mall					22.13		252		13.5	%		22.43		251		13.6	%		-1.3	%		0.4	%		-0.1	%
Washington Crown Center					20.07		246		11.5	%		20.86		235		11.7	%		-3.8	%		4.7	%		-0.2	%
Orlando Fashion Square					29.13		243		16.1	%		33.20		232		17.7	%		-12.3	%		4.7	%		-1.6	%
South Mall					21.80		241		12.5	%		23.42		227		12.4	%		-6.9	%		6.2	%		0.1	%
Chambersburg Mall					21.11		236		9.5	%		25.51		241		9.5	%		-17.3	%		-2.1	%		0.0	%
Phillipsburg Mall					23.09		226		12.3	%		25.05		219		12.0	%		-7.8	%		3.2	%		0.3	%
Voorhees Town Center					27.82		210		12.4	%		34.04		205		12.4	%		-18.3	%		2.4	%		0.0	%
Malls weighted average				$	32.00	$	362		12.6	%	$	32.70	$	348		12.9	%		-2.1	%		4.0	%		-0.3	%
Consolidated Properties				$	31.13	$	351		12.6	%	$	31.89	$	336		12.9	%		-2.4	%		4.5	%		-0.3	%
Unconsolidated Properties				$	41.74	$	477		12.7	%	$	41.29	$	468		13.0	%		1.1	%		1.9	%		-0.3	%
Same Properties				$	32.00	$	362		12.6	%	$	32.70	$	348		12.9	%		-2.1	%		4.0	%		-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 13

Pennsylvania Real Estate Investment Trust

Mall Occupancy ⁽¹⁾ - Owned GLA

	September 30, 2011		September 30, 2010		Change
	Total	Non-Anchor	Total	Non-Anchor	Total	Non-Anchor
Beaver Valley Mall	91.0%	80.6%	90.6%	79.7%	0.4%	0.9%
Capital City Mall	98.2%	97.0%	98.4%	97.2%	-0.2%	-0.2%
Chambersburg Mall	86.7%	71.6%	84.8%	67.6%	1.9%	4.0%
Cherry Hill Mall	93.6%	92.3%	92.6%	91.1%	1.0%	1.2%
Crossroads Mall	90.1%	77.4%	90.6%	78.3%	-0.5%	-0.9%
Cumberland Mall	92.4%	87.4%	94.3%	90.6%	-1.9%	-3.2%
Dartmouth Mall	97.1%	95.2%	98.5%	97.6%	-1.4%	-2.4%
Exton Square Mall	91.1%	80.4%	91.3%	81.0%	-0.2%	-0.6%
Francis Scott Key Mall	98.4%	97.4%	99.0%	98.2%	-0.6%	-0.8%
Gadsden Mall	94.2%	85.6%	93.0%	82.6%	1.2%	3.0%
The Gallery at Market East(2)	61.3%	77.5%	60.6%	75.6%	0.7%	1.9%
Jacksonville Mall	99.2%	98.5%	98.7%	97.4%	0.5%	1.1%
Lehigh Valley Mall	96.4%	95.0%	95.9%	94.4%	0.5%	0.6%
Logan Valley Mall	95.8%	89.9%	95.2%	88.6%	0.6%	1.3%
Lycoming Mall	92.8%	86.4%	95.6%	91.8%	-2.8%	-5.4%
Magnolia Mall	98.8%	97.4%	95.4%	89.5%	3.4%	7.9%
Moorestown Mall	92.0%	82.2%	92.6%	83.4%	-0.6%	-1.2%
New River Valley Mall	97.8%	96.4%	96.5%	94.3%	1.3%	2.1%
Nittany Mall	93.3%	86.4%	96.2%	92.2%	-2.9%	-5.8%
North Hanover Mall	90.8%	78.1%	91.6%	80.0%	-0.8%	-1.9%
Orlando Fashion Square	91.3%	81.6%	89.1%	76.9%	2.2%	4.7%
Palmer Park Mall	96.2%	88.0%	96.4%	88.6%	-0.2%	-0.6%
Patrick Henry Mall	96.3%	92.7%	98.5%	97.2%	-2.2%	-4.5%
Phillipsburg Mall	89.2%	75.1%	91.5%	80.6%	-2.3%	-5.5%
Plymouth Meeting Mall	84.0%	75.6%	82.6%	73.5%	1.4%	2.1%
The Mall at Prince Georges	95.9%	91.4%	94.8%	89.0%	1.1%	2.4%
South Mall	90.7%	85.9%	89.6%	84.2%	1.1%	1.7%
Springfield Mall	89.7%	89.7%	94.3%	94.3%	-4.6%	-4.6%
Uniontown Mall	86.1%	76.0%	95.3%	88.2%	-9.2%	-12.2%
Valley Mall	96.3%	93.6%	96.5%	94.0%	-0.2%	-0.4%
Valley View Mall	96.2%	94.7%	95.0%	93.1%	1.2%	1.6%
Viewmont Mall	98.7%	96.6%	98.8%	96.8%	-0.1%	-0.2%
Voorhees Town Center	67.1%	66.6%	61.2%	60.6%	5.9%	6.0%
Washington Crown Center	90.3%	82.1%	86.2%	74.6%	4.1%	7.5%
Willow Grove Park(3)	94.7%	91.3%	70.0%	92.4%	24.7%	-1.1%
Wiregrass Commons Mall	90.0%	85.5%	88.6%	83.4%	1.4%	2.1%
Woodland Mall	95.5%	95.5%	94.4%	94.4%	1.1%	1.1%
Wyoming Valley Mall	96.5%	90.0%	98.5%	95.6%	-2.0%	-5.6%
Malls weighted average(4)	91.7%	87.3%	91.0%	87.3%	0.7%	0.0%
Consolidated Properties	91.5%	86.9%	90.8%	86.8%	0.7%	0.1%
Unconsolidated Properties	94.9%	93.5%	95.6%	94.4%	-0.7%	-0.9%
Same Properties	91.7%	87.3%	91.0%	87.3%	0.7%	0.0%

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

⁽²⁾  The total occupancy percentage for The Gallery at Market East includes 328,390 sf of the former Strawbridge's store that is currently vacant, pending redevelopment. This vacant department store represents 30.3% of the owned mall GLA as of September 30, 2011 and 2010.

⁽³⁾  The total occupancy percentage for Willow Grove Park as of September 30, 2010 includes the former Strawbridge's store that is currently under redevelopment. This vacant department store represents 26.2% of the owned mall GLA as of September 30, 2010.

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

Page 14

Pennsylvania Real Estate Investment Trust

Strip and Power Center Rent Per Square Foot and Occupancy Percentages

	September 30, 2011				September 30, 2010				Change
	Avg		Occupancy(1)		Avg		Occupancy(1)		Avg	Occupancy(1)
	Base Rent		Total	Non-Anchor	Base Rent		Total	Non-Anchor	Base Rent	Total	Non-Anchor
Christiana Center	$	20.16	96.0%	89.1%	$	20.10	98.8%	96.8%	0.3%	-2.8%	-7.7%
The Commons at Magnolia		15.31	84.9%	81.2%		14.28	83.7%	79.7%	7.2%	1.2%	1.5%
Metroplex Shopping Center		20.03	100.0%	100.0%		19.20	100.0%	100.0%	4.3%	0.0%	0.0%
The Court at Oxford Valley		15.09	91.7%	90.5%		15.60	100.0%	100.0%	-3.3%	-8.3%	-9.5%
Paxton Towne Centre		14.47	94.5%	91.6%		15.78	98.2%	97.3%	-8.3%	-3.7%	-5.7%
Red Rose Commons		13.14	100.0%	100.0%		13.75	82.5%	82.5%	-4.4%	17.5%	17.5%
Springfield Park		21.35	98.2%	94.9%		20.90	98.2%	94.9%	2.2%	0.0%	0.0%
Whitehall Mall		13.48	85.0%	68.2%		12.72	91.6%	82.3%	6.0%	-6.6%	-14.1%
Weighted Average	$	16.18	93.6%	90.6%	$	16.25	95.5%	93.4%	-0.4%	-1.9%	-2.8%
Consolidated Properties	$	15.90	93.8%	89.3%	$	16.58	96.6%	94.1%	-4.1%	-2.8%	-4.8%
Unconsolidated Properties	$	16.28	93.4%	91.0%	$	16.13	95.0%	93.1%	0.9%	-1.6%	-2.1%
Same Properties	$	16.18	93.6%	90.6%	$	16.25	95.5%	93.4%	-0.4%	-1.9%	-2.8%

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

Page 15

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.	45		560,997	5		51,516	50		612,513	$	12,114	$	11,146		3.60	%
JCPenney Company, Inc.	24		2,369,736	6		824,327	30		3,194,063		7,679		7,679		2.48	%
Foot Locker, Inc.	59		277,182	10		66,762	69		343,944		7,872		7,420		2.40	%
Limited Brands, Inc.	57		275,395	15		48,323	72		323,718		7,487		7,041		2.28	%
American Eagle Outfitters, Inc.	40		218,381	2		8,840	42		227,221		6,842		6,534		2.11	%
Zale Corporation	74		55,498	-		-	74		55,498		5,725		5,420		1.75	%
Sears Holding Corporation	24		2,796,396	5		880,777	29		3,677,173		5,445		5,302		1.71	%
Signet Jewelers Limited	39		60,145	-		-	39		60,145		4,495		4,340		1.40	%
Bain Capital LLC (4)	29		585,361	4		8,075	33		593,436		4,183		4,038		1.31	%
Dick's Sporting Goods, Inc.	8		371,675	1		50,484	9		422,159		4,687		3,967		1.28	%
Luxottica Group S.p.A.	46		113,705	4		9,212	50		122,917		4,184		3,885		1.26	%
Golden Gate Capital (5)	15		130,860	4		31,799	19		162,659		4,030		3,633		1.17	%
Abercrombie & Fitch Co.	19		128,443	-		-	19		128,443		3,872		3,490		1.13	%
Genesco, Inc.	58		76,938	3		3,052	61		79,990		3,430		3,289		1.06	%
Aeropostale, Inc.	33		115,299	3		10,619	36		125,918		3,350		3,123		1.01	%
Commonwealth of Pennsylvania	2		229,244	-		-	2		229,244		3,092		3,092		1.00	%
Barnes & Noble, Inc.	9		271,086	-		-	9		271,086		4,013		2,977		0.96	%
Hallmark Cards, Inc.	32		129,143	7		30,277	39		159,420		2,956		2,784		0.90	%
Regis Corporation	75		91,304	3		4,651	78		95,955		2,823		2,734		0.88	%
The Bon-Ton Stores, Inc.	13		1,008,613	1		41,344	14		1,049,957		2,729		2,729		0.88	%
Total Top 20 Tenants	701		9,865,401	73		2,070,058	774		11,935,459	$	101,008	$	94,623		30.60	%
Total Leases							3,049					$	309,304		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 18 Gymboree stores, nine Crazy 8 stores, and six Burlington Coat Factory stores.

⁽⁵⁾   Consists of 18 Express stores and one J. Jill store.

Page 16

Pennsylvania Real Estate Investment Trust

Lease Expirations as of September 30, 2011

(dollars in thousands except psf amounts)

Non-Anchors (1)
		Gross Leasable Area				Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring	Expiring GLA (2)		Percent of Total		Minimum Rent in Expiring Year(2)		PREIT's Share of Minimum Rent in Expiring Year (3)		Percent of PREIT's Total		Average Expiring Minimum Rent psf
Holdover	198		582,408		4.9%	$	13,179	$	12,918		4.8%	$	22.63
2011	219		453,200		3.8%		13,339		12,840		4.8%		29.43
2012	510		1,628,134		13.6%		39,885		37,192		13.8%		24.50
2013	385		1,297,390		10.9%		28,997		27,185		10.1%		22.35
2014	285		1,010,428		8.5%		23,520		21,441		7.9%		23.28
2015	252		1,259,500		10.5%		28,281		25,370		9.4%		22.45
2016	293		1,295,085		10.8%		35,373		31,545		11.7%		27.31
2017	199		917,561		7.7%		24,135		21,431		7.9%		26.30
2018	183		932,289		7.8%		25,452		23,163		8.6%		27.30
2019	138		611,341		5.1%		18,351		17,449		6.5%		30.02
2020	133		934,299		7.8%		20,508		19,316		7.1%		21.95
Thereafter	146		1,023,661		8.6%		22,129		20,371		7.5%		21.62
Total/Average	2,941		11,945,296		100.0%	$	293,149	$	270,221		100.0%	$	24.54
Anchors (1)
		Gross Leasable Area				Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring (4)	Expiring GLA		Percent of Total		Minimum Rent in Expiring Year		PREIT's Share of Minimum Rent in Expiring Year(2)		Percent of PREIT's Total		Average Expiring Minimum Rent psf
2012	4		453,806		4.1%	$	600	$	563		1.4%	$	1.32
2013	14		1,135,570		10.1%		4,593		4,593		11.8%		4.04
2014	15		1,551,546		13.9%		4,249		3,787		9.7%		2.74
2015	18		1,715,835		15.3%		5,115		5,115		13.1%		2.98
2016	20		1,895,436		16.9%		4,777		4,777		12.2%		2.52
2017	7		787,038		7.0%		3,386		2,972		7.6%		4.30
2018	6		777,965		6.9%		4,082		4,082		10.4%		5.25
2019	7		770,343		6.9%		2,014		2,014		5.2%		2.61
2020	3		277,729		2.5%		1,192		1,192		3.0%		4.29
Thereafter	14		1,836,725		16.4%		11,273		9,988		25.6%		6.14
Total/Average	108		11,201,993		100.0%	$	41,281	$	39,083		100.0%	$	3.69

⁽¹⁾  Only includes owned space.

⁽²⁾  Does not include tenants occupying space under agreements with initial terms of less than one year.

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

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

Page 17

Pennsylvania Real Estate Investment Trust

Retail Gross Leasable Area Occupancy Summary as of September 30, 2011

	Owned GLA
	Occupied						Vacant
	Anchor		Non-Anchor				Anchor		Non-Anchor
			Large Format (1)		Small Shop (2)						GLA Not Owned		Total GLA
Malls
Beaver Valley Mall		511,267		148,740		210,914		-		86,425		204,770		1,162,116
Capital City Mall		204,301		63,586		212,247		-		8,635		120,000		608,769
Chambersburg Mall		241,690		19,651		132,609		-		60,473		-		454,423
Cherry Hill Mall(3)		138,000		204,015		425,178		-		52,277		478,885		1,298,355
Crossroads Mall		254,211		29,108		124,723		-		44,967		-		453,009
Cumberland Mall		264,348		212,538		141,398		-		50,933		273,230		942,447
Dartmouth Mall		208,460		142,274		164,724		-		15,482		140,000		670,940
Exton Square Mall		440,301		26,617		270,112		-		72,348		277,468		1,086,846
Francis Scott Key Mall		222,176		140,616		200,890		-		8,946		139,333		711,961
Gadsden Mall		300,960		65,746		106,831		-		29,095		-		502,632
The Gallery at Market East		350,115		73,975		240,702		328,390		91,263		-		1,084,445
Jacksonville Mall		242,115		98,693		144,216		-		3,703		-		488,727
Lehigh Valley Mall		212,000		171,800		372,553		-		28,421		371,986		1,156,760
Logan Valley Mall		454,387		43,943		249,176		-		32,772		-		780,278
Lycoming Mall		333,413		160,268		170,389		-		51,843		120,000		835,913
Magnolia Mall		343,118		86,608		176,349		-		7,095		-		613,170
Moorestown Mall		408,356		98,682		172,368		-		58,844		321,200		1,059,450
New River Valley Mall		175,306		134,996		121,193		-		9,631		-		441,126
Nittany Mall		221,462		12,500		173,866		-		29,216		95,000		532,044
North Hanover Mall		206,792		21,047		95,243		-		32,681		-		355,763
Orlando Fashion Square		491,999		136,808		220,695		-		80,679		155,576		1,085,757
Palmer Park Mall		314,235		-		126,494		-		17,202		-		457,931
Patrick Henry Mall		279,619		16,741		257,588		-		21,491		140,000		715,439
Phillipsburg Mall		326,552		42,021		146,126		-		62,439		-		577,138
Plymouth Meeting Mall(4)		253,584		157,027		208,262		-		117,726		214,635		951,234
The Mall at Prince Georges		479,619		105,935		295,201		-		37,910		-		918,665
South Mall		139,691		131,434		96,584		-		37,490		-		405,199
Springfield Mall		-		-		199,435		-		22,878		387,899		610,212
Uniontown Mall		391,096		49,888		161,105		30,282		66,621		-		698,992
Valley Mall		280,549		125,334		242,536		-		25,051		243,400		916,870
Valley View Mall		96,357		74,148		159,834		-		13,184		254,596		598,119
Viewmont Mall		386,262		82,893		149,741		-		8,298		120,000		747,194
Voorhees Town Center(5)		4,404		67,478		128,559		-		98,131		420,838		719,410
Washington Crown Center		245,401		79,085		159,317		-		52,040		140,095		675,938
Willow Grove Park		225,000		37,260		279,723		-		30,066		413,121		985,170
Wiregrass Commons		94,686		10,345		170,066		-		30,716		332,152		637,965
Woodland Mall		-		120,959		294,214		-		19,467		725,187		1,159,827
Wyoming Valley Mall		592,110		90,851		196,568		-		31,771		-		911,300
Total Malls (38 properties)		10,333,942		3,283,610		7,397,729		358,672		1,548,210		6,089,371		29,011,534
Strip and Power Centers
Christiana Center		190,814		68,132		31,288		-		12,200		-		302,434
The Commons at Magnolia		20,631		28,618		39,367		-		15,716		126,200		230,532
Metroplex Shopping Center		67,185		353,984		56,292		-		-		300,729		778,190
The Court at Oxford Valley		59,620		323,336		36,154		-		37,793		247,623		704,526
Paxton Towne Centre		151,627		196,887		71,380		-		24,538		273,058		717,490
Red Rose Commons		-		248,085		15,206		-		-		199,590		462,881
Springfield Park		83,539		20,500		22,443		-		2,329		145,669		274,480
Whitehall Mall		294,635		135,271		43,891		-		83,704		-		557,501
Total Strip and Power Centers (8 properties)		868,051		1,374,813		316,021		-		176,280		1,292,869		4,028,034
CONSOLIDATED PROPERTIES		10,485,014		3,405,447		6,967,776		358,672		1,549,365		5,728,744		28,495,018
UNCONSOLIDATED PROPERTIES		716,979		1,252,976		745,974		-		175,125		1,653,496		4,544,550
TOTAL PROPERTIES		11,201,993		4,658,423		7,713,750		358,672		1,724,490		7,382,240		33,039,568

⁽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 18,391 sf has been built but not commissioned, and 128,514 sf has been entitled but not yet built.

Page 18

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2011

Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors /Major Tenants	Lease Expiration
MALLS
Beaver Valley Mall Monaca, PA	100%	2002	1970/1991	Boscov's jcpenney Macy's Sears	9/30/18 9/30/17 (1) 8/15/16
Capital City Mall Camp Hill, PA	100%	2003	1974/2005	jcpenney Macy's Sears	11/30/15 (1) 7/28/14
Chambersburg Mall Chambersburg, PA	100%	2003	1982	Bon-Ton Burlington Coat Factory jcpenney Sears	1/28/16 1/31/19 3/31/12 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) 2/28/25
Crossroads Mall(2) Beckley, WV	100%	2003	1981	Belk jcpenney Sears	11/5/14 12/31/16 3/31/16
Cumberland Mall Vineland, NJ	100%	2005	1973/2003	Best Buy BJ's Boscov's Burlington Coat Factory Home Depot jcpenney	1/31/16 (1) (1) 4/30/19 1/31/19 11/30/13
Dartmouth Mall Dartmouth, MA	100%	1997	1971/2000	jcpenney Macy's Sears	7/31/14 (1) 4/12/16
Exton Square Mall(2) Exton, PA	100%	2003	1973/2000	Boscov's jcpenney K-Mart Macy's Sears	10/31/19 5/31/20 (1) (1) 10/6/19
Francis Scott Key Mall Frederick, MD	100%	2003	1978/1991	Barnes & Noble jcpenney Macy's Sears Value City Furniture	4/30/17 9/30/16 (1) 7/31/13 1/31/19
Gadsden Mall Gadsden, AL	100%	2005	1974/1990	Belk jcpenney Sears	7/31/14 1/31/29 3/5/14
The Gallery at Market East (2) Philadelphia, PA	100%	2003	1977/1990	Burlington Coat Factory Commonwealth of Pennsylvania	2/28/32 6/30/29
Jacksonville Mall Jacksonville, NC	100%	2003	1981/2008	Barnes & Noble Belk jcpenney Sears	5/31/18 8/21/16 8/31/15 8/4/16
Lehigh Valley Mall(3) Allentown, PA	50%	1973	1977/2007	Barnes & Noble Boscov's jcpenney Macy's	10/31/17 (1) (1) 7/31/12
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 Burlington Coat Factory Dick's Sporting Goods jcpenney Macy's Sears	1/31/17 7/27/16 1/31/19 1/31/17 10/31/15 (1) 7/31/13
Magnolia Mall Florence, SC	100%	1997	1979/2007	Barnes & Noble Belk Best Buy Dick's Sporting Goods jcpenney Sears	9/30/17 1/31/16 1/31/13 1/31/18 3/31/17 10/16/14
Moorestown Mall Moorestown, NJ	100%	2003	1963/2008	Boscov's Lord & Taylor Macy's Sears	10/31/15 (1) (1) 10/5/22
New River Valley Mall Christiansburg, VA	100%	2003	1988/2007	Belk Dick's Sporting Goods jcpenney Regal Cinemas Sears	4/19/14 1/31/17 3/31/13 4/30/22 8/2/13

Page 19

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2011 (continued)

Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors /Major Tenants	Lease Expiration
Nittany Mall State College, PA	100%	2003	1968/1990	Bon-Ton jcpenney Macy's Sears	1/31/13 7/31/15 (1) 8/28/15
North Hanover Mall Hanover, PA	100%	2003	1967/1999	Dick's Sporting Goods jcpenney Sears	1/31/18 1/31/16 11/30/14
Orlando Fashion Square(2) Orlando, FL	100%	2004	1973/2003	Dillard's jcpenney Macy's Sears	1/31/14 4/30/13 10/30/71 (1)
Palmer Park Mall Easton, PA	100%	1972/2003	1972/1998	Bon-Ton Boscov's	7/25/14 10/31/18
Patrick Henry Mall Newport News, VA	100%	2003	1988/2005	Dick's Sporting Goods Dillard's jcpenney Macy's	1/31/22 9/22/13 10/31/15 (1)
Phillipsburg Mall Phillipsburg, NJ	100%	2003	1989/2003	Bon-Ton jcpenney Kohl's Sears	1/31/15 3/31/13 1/31/25 4/30/14
Plymouth Meeting Mall(2) Plymouth Meeting, PA	100%	2003	1966/2009	AMC Theater Boscov's Macy's Whole Foods	12/31/18 10/31/16 (1) 11/30/29
The Mall at Prince Georges Hyattsville, MD	100%	1998	1959/2004	jcpenney Macy's Marshalls Ross Dress for Less Target	7/31/16 10/31/18 9/30/16 1/31/18 1/31/15
South Mall Allentown, PA	100%	2003	1975/1992	Bon-Ton Stein Mart	1/30/16 10/31/16
Springfield Mall Springfield, PA	50%	2005	1974/1997	Macy's Target	(1) (1)
Uniontown Mall(2) Uniontown, PA	100%	2003	1972/1990	Bon-Ton Burlington Coat Factory jcpenney Sears Teletech Customer Care	1/30/16 1/31/19 10/31/15 2/25/13 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	1/31/17 (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 Voorhees Town Hall	(1) (1) 8/31/28 (1)
Washington Crown Center Washington, PA	100%	2003	1969/1999	Bon-Ton Gander Mountain Sports Macy's Sears	1/31/15 7/24/13 (1) 8/17/14
Willow Grove Park Willow Grove, PA	100%	2000/2003	1982/2001	Bloomingdale's The Cheesecake Factory Macy's Sears	(1) 1/31/28 1/31/22 (1)
Wiregrass Commons Mall Dothan, AL	100%	2003	1986/2008	Belk Burlington Coat Factory Dillards jcpenney	(1) 1/31/20 (1) (1)
Woodland Mall Grand Rapids, MI	100%	2005	1968/1998	Apple Barnes & Noble jcpenney Kohl's Macy's Sears	6/30/15 1/31/20 (1) (1) (1) (1)
Wyoming Valley Mall Wilkes-Barre, PA	100%	2003	1971/2006	Bon-Ton jcpenney Macy's Sears	1/31/17 4/30/12 1/31/17 8/1/16

Page 20

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2011 (continued)

Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors /Major Tenants	Lease Expiration
POWER CENTERS
Christiana Center Newark, DE	100%	1998	1998	Costco Dick's Sporting Goods	9/30/18 11/30/13
Metroplex Shopping Center(3) Plymouth Meeting, PA	50%	1999	2001	Giant Food Store Lowe’s Target	2/28/21 (1) (1)
The Court at Oxford Valley(3) Langhorne, PA	50%	1997	1996	Best Buy BJ’s Dick’s Sporting Goods Home Depot	5/31/21 (1) 4/30/21 (1)
Paxton Towne Centre Harrisburg, PA	100%	1999	2001	Costco Kohl’s Target Weis Markets	(1) 1/30/21 (1) 11/30/20
Red Rose Commons(3) Lancaster, PA	50%	1998	1998	Home Depot Weis Markets	(1) (1)
Whitehall Mall(3) Allentown, PA	50%	1964	1964/1998	Bed, Bath & Beyond Kohl’s Sears	1/31/15 3/9/17 9/18/21
STRIP CENTERS
The Commons at Magnolia Florence, SC	100%	1999	1991/2002	Bed, Bath & Beyond Target	1/31/15 (1)
Springfield Park Springfield, PA	50%	1997/1998	1997/1998	Bed, Bath & Beyond LA Fitness Target	1/31/14 3/31/17 (1)

⁽¹⁾  Space is not owned by PREIT.

⁽²⁾  Property is subject to a ground lease.

⁽³⁾  Property is managed by a third party.

Page 21

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method ⁽¹⁾

(in thousands, except per share amounts)

	September 30, 2011									December 31, 2010
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,430,318		$	211,493		$	3,641,811		$	3,448,900		$	210,505		$	3,659,405
Construction in progress		112,180			963			113,143			121,547			753			122,300
Land held for development		15,292			-			15,292			17,021			-			17,021
Total investments in real estate		3,557,790			212,456			3,770,246			3,587,468			211,258			3,798,726
Accumulated depreciation		(812,663	)		(71,886	)		(884,549	)		(729,086	)		(66,699	)		(795,785	)
Net investments in real estate		2,745,127			140,570			2,885,697			2,858,382			144,559			3,002,941
Investments in partnerships, at equity		16,475			(16,475	)		-			30,959			(30,959	)		-
Other assets:
Cash and cash equivalents		30,347			5,858			36,205			42,327			4,780			47,107
Rent and other receivables(2)		34,800			1,826			36,626			40,732			6,390			47,122
Intangible assets, net		11,197			204			11,401			15,787			288			16,075
Deferred costs and other assets, net		97,064			8,508			105,572			91,930			8,304			100,234
Total other assets		189,883			(79	)		189,804			221,735			(11,197	)		210,538
Total assets	$	2,935,010		$	140,491		$	3,075,501		$	3,080,117		$	133,362		$	3,213,479
LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $701 and $1,569 as of September 30, 2011 and December 31, 2010, respectively)	$	1,745,429		$	205,163		$	1,950,592		$	1,744,248		$	175,693		$	1,919,941
Exchangeable notes (net of discount of $1,349 and $2,809 as of September 30, 2011 and December 31, 2010, respectively)		135,551			-			135,551			134,091			-			134,091
Revolving Facility		55,000			-			55,000			-			-			-
Term Loans		240,000			-			240,000			347,200			-			347,200
Tenants’ deposits and deferred rent		18,161			3,555			21,716			16,583			3,899			20,482
Distributions in excess of partnership investments		63,556			(63,556	)		-			44,614			(44,614	)		-
Fair value of derivative instruments		24,521			-			24,521			27,233			-			27,233
Other liabilities		61,621			(4,671	)		56,950			61,618			(1,616	)		60,002
Total liabilities		2,343,839			140,491			2,484,330			2,375,587			133,362			2,508,949
Equity:
Total equity		591,171			-			591,171			704,530			-			704,530
Total liabilities and equity	$	2,935,010		$	140,491		$	3,075,501		$	3,080,117		$	133,362		$	3,213,479

⁽¹⁾ Total includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s equity in these properties.

⁽²⁾ Total includes straight line rent of $27.7 million ($25.3 million wholly owned, $2.4 million partnership) as of September 30, 2011, and $27.8 million ($25.2 million wholly owned, $2.6 million partnership) as of December 31, 2010.

Page 22

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Property Type ⁽¹⁾

(in thousands, except per share amounts)

	September 30, 2011												December 31, 2010
	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	$	3,414,691		$	220,870		$	21,542		$	3,657,103		$	3,433,844		$	219,321		$	23,261		$	3,676,426
Construction in progress		57,197			108			55,838			113,143			67,123			-			55,177			122,300
Total investments in real estate		3,471,888			220,978			77,380			3,770,246			3,500,967			219,321			78,438			3,798,726
Accumulated depreciation		(807,528	)		(75,572	)		(1,449	)		(884,549	)		(724,708	)		(69,785	)		(1,292	)		(795,785	)
Net investments in real estate		2,664,360			145,406			75,931			2,885,697			2,776,259			149,536			77,146			3,002,941
Other assets:
Cash and cash equivalents		19,648			3,154			13,403			36,205			21,119			1,931			24,057			47,107
Rent and other receivables(2)		30,996			2,536			3,094			36,626			37,768			7,008			2,346			47,122
Intangible assets, net		4,124			-			7,277			11,401			8,725			-			7,350			16,075
Deferred costs and other assets, net		74,980			8,059			22,533			105,572			72,165			7,960			20,109			100,234
Total other assets		129,748			13,749			46,307			189,804			139,777			16,899			53,862			210,538
Total assets	$	2,794,108		$	159,155		$	122,238		$	3,075,501		$	2,916,036		$	166,435		$	131,008		$	3,213,479
LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $701 and $1,569 as of September 30, 2011 and December 31, 2010, respectively)	$	1,748,700		$	201,892		$	-		$	1,950,592		$	1,743,470		$	171,553		$	4,918		$	1,919,941
Exchangeable notes (net of discount of $1,349 and $2,809 as of September 30, 2011 and December 31, 2010, respectively)		-			-			135,551			135,551			-			-			134,091			134,091
Revolving Facility		-			-			55,000			55,000			-			-			-			-
Term Loans		-			-			240,000			240,000			-			-			347,200			347,200
Tenants’ deposits and deferred rent		19,183			2,380			153			21,716			18,205			2,128			149			20,482
Fair value of derivative instruments		-			-			24,521			24,521			-			-			27,233			27,233
Other liabilities		35,043			(6,264	)		28,171			56,950			32,593			(2,277	)		29,686			60,002
Total liabilities		1,802,926			198,008			483,396			2,484,330			1,794,268			171,404			543,277			2,508,949
Equity:
Total equity		991,182			(38,853	)		(361,158	)		591,171			1,121,768			(4,969	)		(412,269	)		704,530
Total liabilities and equity	$	2,794,108		$	159,155		$	122,238		$	3,075,501		$	2,916,036		$	166,435		$	131,008		$	3,213,479

⁽¹⁾ Total includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s equity in these properties.

⁽²⁾ Total includes straight line rent of $27.7 million ($25.3 million wholly owned, $2.4 million partnership) as of September 30, 2011, and $27.8 million ($25.2 million wholly owned, $2.6 million partnership) as of December 31, 2010.

Page 23

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾

(in thousands)

	September 30, 2011								December 31, 2010
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Malls
Beaver Valley Mall	$	70,322	$	-	$	20,791	$	49,531	$	69,663	$	-	$	18,536	$	51,127
Capital City Mall		96,370		-		24,241		72,129		95,920		-		21,547		74,373
Chambersburg Mall		38,374		-		8,599		29,775		38,529		-		7,803		30,726
Cherry Hill Mall		451,022		367		92,874		358,515		448,513		34		76,173		372,374
Crossroads Mall		38,888		4,552		9,849		33,591		36,750		1,057		8,903		28,904
Cumberland Mall		63,343		337		10,496		53,184		63,340		153		9,051		54,442
Dartmouth Mall		62,945		-		28,036		34,909		62,543		-		26,604		35,939
Exton Square Mall		148,446		72		28,958		119,560		147,556		64		26,367		121,253
Francis Scott Key Mall		78,102		11		18,605		59,508		76,482		813		16,587		60,708
Gadsden Mall		61,974		-		11,345		50,629		61,174		-		9,735		51,439
The Gallery at Market East		169,988		2,246		25,499		146,735		169,696		2,014		19,913		151,797
Jacksonville Mall		79,779		-		18,082		61,697		79,247		-		16,096		63,151
Logan Valley Mall		96,233		-		24,209		72,024		96,000		-		22,521		73,479
Lycoming Mall		77,239		-		17,808		59,431		76,814		-		15,817		60,997
Magnolia Mall		87,859		859		26,286		62,432		87,434		27		23,814		63,647
Moorestown Mall		93,030		4		27,426		65,608		92,560		87		25,201		67,446
New River Valley Mall		58,128		-		17,736		40,392		57,892		-		15,238		42,654
Nittany Mall		43,924		-		10,021		33,903		43,458		-		9,073		34,385
North Hanover Mall(2)		27,321		42		4,924		22,439		38,219		17,100		8,004		47,315
Orlando Fashion Square		42,817		-		6,765		36,052		40,426		-		4,448		35,978
Palmer Park Mall		34,528		-		12,715		21,813		34,465		-		12,103		22,362
Patrick Henry Mall		142,160		-		36,688		105,472		141,312		-		32,338		108,974
Phillipsburg Mall(3)		19,476		-		4,603		14,873		54,088		606		10,930		43,764
Plymouth Meeting Mall		160,823		1		32,881		127,943		159,802		426		28,256		131,972
The Mall at Prince Georges		100,940		-		35,453		65,487		100,654		-		32,782		67,872
South Mall		34,014		-		6,716		27,298		33,728		-		6,107		27,621
Uniontown Mall		40,078		-		10,799		29,279		39,955		-		9,750		30,205
Valley Mall		92,707		-		22,849		69,858		92,081		-		21,252		70,829
Valley View Mall		67,931		-		14,255		53,676		67,602		-		12,977		54,625
Viewmont Mall		91,167		-		19,820		71,347		90,359		-		17,600		72,759
Voorhees Town Center		69,955		18,777		16,526		72,206		66,001		20,774		13,950		72,825
Washington Crown Center		40,318		-		13,398		26,920		40,249		-		12,826		27,423
Willow Grove Park		190,024		29,796		50,093		169,727		189,032		23,943		45,471		167,504
Wiregrass Commons Mall		53,356		-		10,506		42,850		52,072		-		9,159		42,913
Woodland Mall		185,687		-		32,565		153,122		185,530		-		28,070		157,460
Wyoming Valley Mall		108,332		-		25,141		83,191		107,913		-		22,251		85,662
Total Consolidated Malls		3,317,600		57,064		777,558		2,597,106		3,337,059		67,098		697,253		2,706,904
Unconsolidated Malls
Lehigh Valley Mall		41,471		128		18,564		23,035		41,516		21		17,338		24,199
Springfield Mall		55,620		5		11,406		44,219		55,269		4		10,117		45,156
Total Unconsolidated Malls		97,091		133		29,970		67,254		96,785		25		27,455		69,355
TOTAL MALLS	$	3,414,691	$	57,197	$	807,528	$	2,664,360	$	3,433,844	$	67,123	$	724,708	$	2,776,259

⁽¹⁾ Total includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s equity in these properties.

⁽²⁾ Net of impairment of $24,133 recorded in the 3^rd Quarter of 2011.

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

Page 24

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾(continued)

(in thousands)

	September 30, 2011								December 31, 2010
	Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Strip and Power Centers
Christiana Center	$	42,648	$	-	$	13,233	$	29,415	$	42,020	$	-	$	12,288	$	29,732
The Commons at Magnolia		12,674		-		3,708		8,966		12,674		-		3,347		9,327
Paxton Towne Centre		57,396		-		18,164		39,232		57,147		-		16,198		40,949
Total Consolidated Strip and Power Centers		112,718		-		35,105		77,613		111,841		-		31,833		80,008
Unconsolidated Strip and Power Centers
Metroplex Shopping Center		42,598		108		16,848		25,858		42,180		-		15,315		26,865
The Court at Oxford Valley		27,883		-		9,071		18,812		27,883		-		8,600		19,283
Red Rose Commons		13,601		-		4,200		9,401		13,178		-		3,936		9,242
Whitehall Mall		16,716		-		8,707		8,009		16,954		-		8,570		8,384
Springfield Park		7,354		-		1,641		5,713		7,285		-		1,531		5,754
Total Unconsolidated Strip and Power Centers		108,152		108		40,467		67,793		107,480		-		37,952		69,528
TOTAL STRIP AND POWER CENTERS	$	220,870	$	108	$	75,572	$	145,406	$	219,321	$	-	$	69,785	$	149,536
Consolidated Properties Under Development
Springhills	$	-	$	21,961	$	-	$	21,961	$	-	$	21,984	$	-	$	21,984
White Clay Point		-		33,155		-		33,155		-		32,465		-		32,465
Total Consolidated Properties Under Development		-		55,116		-		55,116		-		54,449		-		54,449
Unconsolidated Properties Under Development
Pavilion at Market East		6,250		722		1,449		5,523		6,240		728		1,292		5,676
Total Unconsolidated Properties Under Development		6,250		722		1,449		5,523		6,240		728		1,292		5,676
Other Properties
Land held for development—consolidated		15,292		-		-		15,292		17,021		-		-		17,021
Total Other Properties		15,292		-		-		15,292		17,021		-		-		17,021
TOTAL DEVELOPMENT AND OTHER	$	21,542	$	55,838	$	1,449	$	75,931	$	23,261	$	55,177	$	1,292	$	77,146
TOTAL INVESTMENT IN REAL ESTATE	$	3,657,103	$	113,143	$	884,549	$	2,885,697	$	3,676,426	$	122,300	$	795,785	$	3,002,941
CONSOLIDATED PROPERTIES	$	3,445,610	$	112,180	$	812,663	$	2,745,127	$	3,465,921	$	121,547	$	729,086	$	2,858,382
UNCONSOLIDATED PROPERTIES		211,493		963		71,886		140,570		210,505		753		66,699		144,559
TOTAL INVESTMENT IN REAL ESTATE	$	3,657,103	$	113,143	$	884,549	$	2,885,697	$	3,676,426	$	122,300	$	795,785	$	3,002,941

⁽¹⁾  Total includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s equity in these properties.

Page 25

Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)

	Quarter Ended September 30, 2011						Nine Months Ended September 30, 2011
	Consolidated		Unconsolidated		Total		Consolidated		Unconsolidated		Total
Redevelopment projects with incremental GLA and/or anchor replacement(1)	$	12,439	$	316	$	12,755	$	15,025	$	382	$	15,407
New development projects		257		-		257		690		4		694
Tenant allowances		4,586		373		4,959		10,427		374		10,801
Recurring capital expenditures:
CAM expenditures		3,685		105		3,790		6,894		248		7,142
Non-CAM expenditures		1,626		-		1,626		3,790		-		3,790
Total recurring capital expenditures		5,311		105		5,416		10,684		248		10,932
Total	$	22,593	$	794	$	23,387	$	36,826	$	1,008	$	37,834

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

Page 26

Pennsylvania Real Estate Investment Trust

Debt Analysis as of September 30, 2011

(in thousands)

Outstanding Debt
	Fixed Rate  (1)			% of Total Indebtedness	Variable Rate  (5)			% of Total Indebtedness	Total			% of Total Indebtedness
Consolidated mortgage loans payable(2)	$	1,730,909		72.7%	$	14,520		0.6%	$	1,745,429		73.3%
Unconsolidated mortgage loans payable		201,358		8.5%		3,805		0.1%		205,163		8.6%
Exchangeable notes(3)		135,551		5.7%		—		0.0%		135,551		5.7%
2010 Credit Facility(4)		190,000		8.0%		105,000		4.4%		295,000		12.4%
TOTAL OUTSTANDING DEBT	$	2,257,818		94.9%	$	123,325		5.1%	$	2,381,143		100.0%
AVERAGE STATED INTEREST RATE		5.54	%			3.99	%			5.46	%

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

⁽²⁾Includes debt premium of $701

⁽³⁾ Net of debt discount of $1,349

⁽⁴⁾ As of September 30, 2011, we have designated interest rate swap agreements to effectively fix $190.0 million of the underlying LIBOR associated with the 2010 Credit Facility until March 10, 2013 at a current weighted average rate of 1.83% (excluding the spread on the related debt). Of that notional amount, $185.0 million of this $190.0 million is also covered by a forward starting swap that becomes effective on April 2, 2012 and remains effective until March 13, 2013 at a rate of 2.96%, excluding the spread on the related debt. Additionally, $15.5 million is subject to a LIBOR cap with a strike price of 2.50%. The LIBOR cap will mature in April 2012.

⁽⁵⁾ The variable rate amount includes $15.5 million that is subject to a LIBOR cap with a strike rate of 2.5%. The LIBOR cap expires in April 2012.

Average Debt Balance
					2010 Credit Facility
		Mortgage Debt(1)			Revolving Facility			Term Loans		Exchangeable Notes		Exchangeable Notes Discount			TOTAL
Beginning Balance	6/30/2011	$	1,924,222		$	70,000		$	240,000	$	136,900	$	(1,842	)	$	2,369,280
801 Market Street mortgage loan			27,700			—			—		—		—			27,700
One Cherry Hill repayment			(4,918	)		—			—		—		—			(4,918	)
Metroplex Shopping Center repayment			(28,877	)		—			—		—		—			(28,877	)
Metroplex Shopping Center refinancing			43,750			—			—		—		—			43,750
Logan Valley Mall pay down			(5,000	)		—			—		—		—			(5,000	)
Mortgage loan amortization(2)			(6,285	)		—			—		—		—			(6,285	)
Revolving Facility repayment, net			—			(15,000	)		—		—		—			(15,000	)
Exchangeable notes discount amortization			—			—			—		—		493			493
Ending Balance	9/30/2011	$	1,950,592		$	55,000		$	240,000	$	136,900	$	(1,349	)	$	2,381,143
Weighted Average Balance		$	1,940,322		$	55,489		$	240,000	$	136,900	$	(1,680	)	$	2,371,032

⁽¹⁾Includes debt premium.

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

Debt Maturities(1)
								2010 Credit Facility
Year		Scheduled Amortization		Debt Premium Amortization		Mortgage Balance at Maturity		Revolving Facility		Term Loans		Exchangeable Notes		Exchangeable Notes Discount Amortization			Total Debt
	2011	$	6,164	$	285	$	—	$	—	$	—	$	—	$	(500	)	$	5,949
	2012		23,018		416		461,603		—		—		136,900		(849	)		621,088
	2013		17,694		—		425,772		—		—		—		—			443,466
	2014		16,244		—		99,203		55,000		240,000		—		—			410,447
	2015		15,367		—		305,896		—		—		—		—			321,263
	2016		5,211		—		243,745		—		—		—		—			248,956
	2017		3,996		—		150,000		—		—		—		—			153,996
	Thereafter		14,015		—		161,963		—		—		—		—			175,978
		$	101,709	$	701	$	1,848,182	$	55,000	$	240,000	$	136,900	$	(1,349	)	$	2,381,143

⁽¹⁾ The weighted average period to mortgage maturity is 3.48 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
	2012	$	468,482		5.51	%	$	468,482		5.20	%
	2013		430,651		5.37	%		430,651		5.37	%
	2014		102,648		7.28	%		102,648		7.28	%
	2015		335,907		5.69	%		335,907		5.69	%
	2016		264,986		5.38	%		264,986		5.38	%
	2017		150,000		5.51	%		150,000		5.51	%
	Thereafter		197,217		5.61	%		197,217		5.61	%
	Total	$	1,949,891		5.60	%	$	1,949,891		5.52	%

⁽¹⁾ Excludes amortization of debt issuance costs.

Page 27

Pennsylvania Real Estate Investment Trust

Debt Schedule as of September 30, 2011

(in thousands)

	Lender	Proportionate Share (1)							Interest Rate			Marked to Market Interest Rate (GAAP)			Annual Debt Service		Balance at Maturity		Maturity Date
		Debt		Debt Premium/ (Discount)			Total
Fixed Rate Mortgage Loans
Capital City Mall	CMBS	$	48,192	$	336		$	48,528		7.61	%		5.50	%	$	4,603	$	47,898		Feb 2012
Beaver Valley Mall	CMBS		42,731		-			42,731		7.36	%		7.36	%		3,972		42,266		Apr 2012
Christiana Center (2) (3) (4)	Bank		40,000		-			40,000		3.67	%		3.67	%		1,467		40,000		June 2012
Paxton Towne Centre(2) (4) (5)	Bank		50,000		-			50,000		3.75	%		3.75	%		1,876		50,000		July 2012
Cherry Hill Mall	Life Insurance Co		181,453		-			181,453		5.42	%		5.42	%		13,510		177,689		Oct 2012
Cherry Hill Mall Supplemental Loan	Life Insurance Co		53,810		-			53,810		5.51	%		5.51	%		3,030		53,003		Oct 2012
Cumberland Mall Loan #1	CMBS		39,672		365			40,037		6.50	%		5.40	%		3,413		38,782		Nov 2012
New River Valley Mall(2) (4) (6)	Bank		25,000		-			25,000		4.83	%		4.83	%		1,208		25,000		Jan 2013
Dartmouth Mall	CMBS		60,138		-			60,138		4.95	%		4.95	%		4,484		57,594		June 2013
Moorestown Mall	CMBS		55,198		-			55,198		4.95	%		4.95	%		4,115		52,863		June 2013
Jacksonville Mall(2) (7)	Bank		56,265		-			56,265		5.83	%		5.83	%		3,277		56,265		Sept 2013
Logan Valley Mall(2) (7)	Bank		63,000		-			63,000		5.79	%		5.79	%		3,649		63,000		Sept 2013
Wyoming Valley Mall(2) (7)	Bank		65,000		-			65,000		5.85	%		5.85	%		3,803		65,000		Sept 2013
Francis Scott Key Mall(2)	Bank		55,000		-			55,000		5.25	%		5.25	%		2,885		55,000		Dec 2013
Viewmont Mall(2)	Bank		48,000		-			48,000		5.25	%		5.25	%		2,518		48,000		Dec 2013
Exton Square Mall	Life Insurance Co		68,308		-			68,308		7.50	%		7.50	%		5,873		66,732		Jan 2014
Lycoming Mall	Bank		34,340		-			34,340		6.84	%		6.84	%		3,001		32,470		Jul 2014
Springfield East(2) (8)	Bank		2,240		-			2,240		5.39	%		5.39	%		92		2,061		Mar 2015
Springfield Park(2) (8)	Bank		2,630		-			2,630		5.39	%		5.39	%		108		2,419		Mar 2015
Magnolia Mall	CMBS		59,849		-			59,849		5.33	%		5.33	%		4,413		54,842		July 2015
Patrick Henry Mall	Life Insurance Co		91,909		-			91,909		6.34	%		6.34	%		7,743		83,210		Oct 2015
Springfield Mall(2)	Bank		33,120		-			33,120		4.77	%		4.77	%		2,118		30,740		Nov 2015
Willow Grove Park	Life Insurance Co		146,159		-			146,159		5.65	%		5.65	%		11,083		132,624		Dec 2015
Valley Mall	CMBS		85,727		-			85,727		5.49	%		5.49	%		5,014		78,996		Mar 2016
Woodland Mall	CMBS		151,608		-			151,608		5.58	%		5.58	%		10,760		140,484		Apr 2016
801 Market Street(2) (4) (7)	Bank		25,000		-			25,000		3.84	%		3.84	%		960		24,265		Jul 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		5,730		-			5,730		7.00	%		7.00	%		574		4,145		Nov 2018
Cumberland Mall Loan #2	Bank		2,310		-			2,310		5.00	%		5.00	%		390		—		Dec 2018
Valley View Mall	CMBS		31,539		-			31,539		5.95	%		5.95	%		2,290		27,161		July 2020
Lehigh Valley Mall	Life Insurance Co		68,969		-			68,969		5.88	%		5.88	%		4,972		58,519		July 2020
Red Rose Commons	CMBS		14,919		-			14,919		5.14	%		5.14	%		978		12,379		July 2021
The Court at Oxford Valley	CMBS		30,000		-			30,000		5.56	%		5.56	%		1,668		25,782		July 2021
Metroplex Shopping Center	CMBS		43,750		-			43,750		5.00	%		5.00	%		2,681		33,978		Oct 2023
Total Fixed Rate Mortgage Loans			1,931,566		701			1,932,267		5.62	%		5.55	%		130,796		1,833,167
Variable Rate Mortgage Loans
Christiana Center (2) (3)	Bank		4,819		-			4,819		2.07	%		2.07	%		860		4,257		June 2012
Paxton Towne Centre(2) (5)	Bank		4,000		-			4,000		2.22	%		2.22	%		89		4,000		July 2012
Pavilion East Associates	Bank		3,805		-			3,805		2.97	%		2.97	%		200		3,708		Aug 2012
New River Valley Mall(2) (6)	Bank		3,050		-			3,050		3.25	%		3.25	%		99		3,050		Jan 2013
801 Market Street(2) (7)	Bank		2,651		-			2,651		2.32	%		2.32	%		685		—		Jul 2016
Total Variable Rate Mortgage Loans			18,325		-			18,325		2.52	%		2.52	%		1,933		15,015
Total Mortgage Loans		$	1,949,891	$	701		$	1,950,592		5.60	%		5.52	%	$	132,729	$	1,848,182
CONSOLIDATED MORTGAGE LOANS		$	1,744,728	$	701		$	1,745,429		5.62	%		5.54	%	$	119,338	$	1,674,451
UNCONSOLIDATED MORTGAGE LOANS			205,163		-			205,163		5.38	%		5.38	%		13,391		173,731
EXCHANGEABLE NOTES (9)			136,900		(1,349	)		135,551		4.00	%		5.87	%		5,476		136,900		June 2012
2010 CREDIT FACILITY—FIXED RATE(10) (11) (12)			190,000		-			190,000		5.83	%		5.83	%		11,073		190,000		Mar 2014
2010 CREDIT FACILITY—VARIABLE RATE (10) (11)			105,000		-			105,000		4.25	%		4.25	%		4,463		105,000		Mar 2014
Total		$	2,381,791	$	(648	)	$	2,381,143		5.46	%		5.51	%	$	153,740	$	2,280,082
AMORTIZATION OF DEFERRED FINANCING FEES			-		-			-		-			0.38	%		-		-
EFFECTIVE INTEREST RATE		$	2,381,791	$	(648	)	$	2,381,143		5.46	%		5.89	%	$	153,740	$	2,280,082

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

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

⁽³⁾ The mortgage loan has two one year extension options. The first option was exercised to extend the maturity date to June 2012.

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

⁽⁵⁾The mortgage loan has two one year extension options. The first option was exercised to extend the maturity date to July 2012.

⁽⁶⁾ The mortgage loan has one one year extension option.

⁽⁷⁾The mortgage loan has two one year extension options.

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

⁽⁹⁾ The marked to market interest rate includes the effect of deferred financing fee amortization and debt discount amortization.

⁽¹⁰⁾ Secured by first mortgage liens on 20 properties. See page 29 for property detail.

⁽¹¹⁾ The 2010 Credit Facility consists of the 2010 Term Loan, with a balance of $240,000 and the Revolving Facility, with a balance of $55,000. The total available to borrow against the Revolving Facility is $195,000.

⁽¹²⁾ As of September 30, 2011, we have designated interest rate swap agreements to effectively fix $190.0 million of the underlying LIBOR associated with the 2010 Credit Facility until March 10, 2013 at a current weighted average rate of 1.83% (excluding the spread on the related debt). Of that notional amount, $185.0 million of this $190.0 million is also covered by a forward starting swap that becomes effective on April 2, 2012 and remains effective until March 13, 2013 at a rate of 2.96%, excluding the spread on the related debt. Additionally, $15.5 million is subject to a LIBOR cap with a strike price of 2.50%. The LIBOR cap will mature in April 2012.

Page 28

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios ⁽¹⁾

	September 30, 2011
Consolidated Liabilities to Gross Asset Value		67.78%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 70%
EBITDA to Interest Expense		1.87
EBITDA may not be less than 1.60 to 1.00
Adjusted EBITDA to Fixed Charges		1.57
Adjusted EBITDA may not be less than 1.35 to 1.00
Corporate Debt Yield		10.86%
The ratio of EBITDA to total indebtedness may not be less than 9.50%.
Facility Debt Yield		18.03%
The ratio of NOI for Collateral Properties to Aggregate Outstanding Principal Amount (2)

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

⁽¹⁾ The amended, restated and consolidated senior secured credit agreement dated as of March 11, 2010, as amended on June 29, 2011 (the “2010 Credit Facility”), contains affirmative and negative covenants customarily found in such agreements, including requirements that the Company, on a consolidated basis, maintain certain financial ratios. All capitalized terms used on this page have the meanings ascribed to such terms in the 2010 Credit Facility. In addition to the ratios set forth herein, there are several other ratios under the 2010 Credit Agreement with which the Company must comply, all of which are described in the Company’s Current Reports on Form 8-K dated March 11, 2010 and June 29, 2011. The Company has filed the 2010 Credit Agreement and related material agreements in accordance with the rules and regulations of the Securities and Exchange Commission.

⁽²⁾ The Maximum Loan Availability is based on a Facility Debt Yield equal to or greater than 9.75%.

Page 29

Pennsylvania Real Estate Investment Trust

Shareholder Information

Ten Largest Institutional Shareholders:	Common Shares Held(1)
The Vanguard Group, Inc.		6,182,854
BlackRock Fund Advisors		4,361,733
Cohen & Steers Capital Management, Inc.		3,450,732
Dreman Value Management LLC		2,578,306
Deutsche Investment Management Americas, Inc.		1,954,625
Brookfield Investment Management, Inc.		1,800,494
State Street Global Advisors		1,788,830
Bank of America Merrill Lynch		1,346,921
Northern Trust Investments		1,153,856
Daiwa Asset Management Co. Ltd.		1,017,544
TOTAL of Ten Largest Institutional:		25,635,895
TOTAL of all Institutional Holders:		43,139,867
Ten Largest as % of Total Institutional:		59.4	%

⁽¹⁾  Based on 13F and 13G filings as of September 30, 2011 or most recent filings.

Breakdown of Share & Unit Ownership: Shares Held	Most Recent		% of Outstanding			December 31, 2010
Institutional (1)		43,139,867		74.4	%		38,639,075
Retail (2)		9,813,884		16.9	%		13,992,951
Insiders (3)		5,064,204		8.7	%		5,133,095
TOTAL		58,017,955		100.0	%		57,765,121

⁽¹⁾  Based on 13F and 13G filings as of September 30, 2011 or most recent filings.

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

⁽³⁾ Insider holdings as of March 31, 2011 (Shares and OP Units only). See proxy statement dated April 27, 2011 for more details.

Page 30

Pennsylvania Real Estate Investment Trust

Definitions

Funds From Operations (FFO)

The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations (“FFO”), which is a non-GAAP measure commonly used by REITs, as income before gains (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. Similarly, FFO per diluted share and OP Unit is a measure that is useful because it reflects the dilutive impact of outstanding convertible securities.

The Company uses FFO and FFO per diluted share and OP Unit in measuring its performance against peers and as one of the performance measures for determining incentive compensation amounts earned under certain of our performance-based executive compensation programs. The Company computes FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than 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 gains on sales of operating real estate and depreciation and amortization of real estate.

Net Operating Income (NOI)

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

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

Funds Available for Distribution (FAD)

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

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