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 December 31, 2012

www.preit.com

NYSE: PEI

NYSE: PEIPRA, PEIPRB

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

December 31, 2012

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 December 31, 2012 and December 31, 2011	4
Statement of Operations - Proportionate Consolidation Method - Years Ended December 31, 2012 and December 31, 2011	5
Statement of Net Operating Income - Quarters and Years Ended December 31, 2012 and December 31, 2011	6
Computation of Earnings Per Share	7
Funds From Operations and Funds Available for Distribution - Quarters Ended December 31, 2012 and December 31, 2011	8
Funds From Operations and Funds Available for Distribution - Years Ended December 31, 2012 and December 31, 2011	9
Operating Statistics
Leasing Activity Summary Including Held for Sale Properties	10
Leasing Activity Summary Excluding Held for Sale Properties	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
Property Information	18
Balance Sheet
Balance Sheet - Proportionate Consolidation Method	21
Capital Expenditures	22
Debt Analysis	23
Debt Schedule	24
Selected Debt Ratios	25
Definitions	26

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, achievements or results, 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; potential operating losses on impairment of certain long-lived assets, such as real estate, or intangible assets, such as goodwill; potential losses on impairment of assets that we might be required to record in connection with any dispositions of assets; recent changes to our corporate management team and any resulting modifications to our business strategies; 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 interests in 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 conditions and their effect on employment, consumer confidence and spending and the corresponding effects on tenant business, performance, prospects, solvency and leasing decisions on our cash flows; 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 and in light of the relatively high number of leases that have expired or are expiring by the end of 2013. 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, as amended, for the year ended December 31, 2011, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2012, June 30, 2012, and September 30, 2012. 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. The Company’s currently owns interests in 46 retail properties, 42 of which are operating retail properties, three development properties, and one property classified as held for sale. The 42 operating retail properties have a total of 30.7 million square feet and include 36 enclosed malls and six strip and power centers. The operating properties are located in 12 states in the eastern half of the United States, primarily in the Mid-Atlantic region. PREIT is headquartered in Philadelphia, Pennsylvania.

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

Heather Crowell, Vice President of Corporate Communications

200 South Broad Street

Philadelphia, PA 19102

Telephone: (215) 875-0735

Fax: (215) 546-2504

Email: crowellh@preit.com

Research Coverage

Company	Analyst	Phone Number
Bank of America/Merrill Lynch	Craig Schmidt	(646) 855-3640
Barclays Capital	Ross Smotrich	(212) 526-2306
Citi Investment Research	Michael Bilerman	(212) 816-1383
	Quentin Velleley	(212) 816-6981
	Emmanuel Korchman	(212) 816-1382
Discern	David Wiggington	(646) 862-4177
Evercore Partners	Ben Yang	(415) 229-8070
Green Street Advisors	Cedrik Lachance	(949) 640-8780
	Daniel J. Busch	(949) 640-8780
JP Morgan	Michael W. Mueller	(212) 622-6689
	Molly McCartin	(212) 622-6615
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:

February 21, 2013 - PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.18 per common share, $0.515625 per share dividend for Series A preferred shares, and $0.327778 per share dividend for Series B preferred shares.

January 17, 2013 - PREIT announced the tax status of its distributions per share paid during 2012.

November 13, 2012 - PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.16 per common share, $0.515625 per share dividend for Series A preferred shares, and $0.327778 per share dividend for Series B preferred shares.

Acquisitions, dispositions, development and redevelopment activities:

February 22, 2013 - PREIT announced that Main Line Health will open an ambulatory health care facility at Exton Square Mall in Exton, Pennsylvania.

February 12, 2013 - PREIT announced it has completed the sale of Orlando Fashion Square Mall in Orlando, Florida.

January 14, 2013 - PREIT announced it has completed the sale of Paxton Towne Centre, a power center located in Harrisburg, Pennsylvania.

January 10, 2013 - PREIT announced it has completed the sale of Phillipsburg Mall in Phillipsburg, New Jersey.

December 19, 2012 - PREIT announced transformative transactions at Moorestown Mall in Moorestown, New Jersey.

November 19, 2012 - PREIT announced the opening of the Apple Store at Willow Grove Park in Willow Grove, Pennsylvania.

October 5, 2012 - PREIT announced the opening of jcpenney stores at Willow Grove Park in Willow Grove, Pennsylvania, and North Hanover Mall in Hanover, Pennsylvania.

Financing activities:

February 14, 2013 - PREIT announced it has completed the refinancing of Viewmont Mall, Francis Scott Key Mall and Lycoming Mall.

October 11, 2012 - PREIT announced the closing of its Series B preferred share offering.

October 2, 2012 - PREIT announced the pricing of its Series B preferred share offering.

October 1, 2012 - PREIT announced commencement of Series B preferred share offering.

Other activities:

January 15, 2013 - PREIT scheduled its Fourth Quarter earnings call for Tuesday, February 26, 2013.

November 7, 2012 - PREIT scheduled a webcast for its upcoming Investor Conference on November 8, 2012.

November 5, 2012 - PREIT announced it will open its malls at midnight on Black Friday.

November 2, 2012 - PREIT reported it had minimal disturbance to its properties due to Hurricane Sandy.

October 24, 2012 - PREIT reported its Third Quarter 2012 results.

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 December 31,						Year Ended December 31,
	2012			2011			2012			2011			2010
TRADING INFORMATION
Common Shares
High Price per share	$	17.90		$	11.00		$	17.90		$	17.34		$	17.35
Low Price per share	$	15.42		$	6.50		$	10.49		$	6.50		$	8.35
Closing Share Price (at the end of period)	$	17.64		$	10.44		$	17.64		$	10.44		$	14.53
Series A Preferred Shares
High Price per share	$	26.97		$	—		$	27.33		$	—		$	—
Low Price per share	$	25.18		$	—		$	24.95		$	—		$	—
Closing Share Price (at the end of period)	$	26.28		$	—		$	26.28		$	—		$	—
Series B Preferred Shares
High Price per share	$	25.54		$	—		$	25.54		$	—		$	—
Low Price per share	$	24.51		$	—		$	24.51		$	—		$	—
Closing Share Price (at the end of period)	$	25.27		$	—		$	25.27		$	—		$	—
MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding		56,331			55,677			56,331			55,677			55,436
OP Units Outstanding		2,301			2,329			2,301			2,329			2,329
Total Shares and OP Units Outstanding		58,632			58,006			58,632			58,006			57,765
Equity Market Capitalization - Shares and OP Units	$	1,034,273		$	605,581		$	1,034,273		$	605,581		$	839,327
Series A Preferred Shares, Nominal Value		115,000			—			115,000			—			—
Series B Preferred Shares, Nominal Value		86,250			—			86,250			—			—
Total Equity Market Capitalization	$	1,235,523		$	605,581		$	1,235,523		$	605,581		$	839,327
DEBT CAPITALIZATION(1)
Secured Debt Balance(2)(3)	$	2,101,769		$	2,230,645		$	2,101,769		$	2,230,645		$	2,265,572
Unsecured Debt Balance(4)		—			136,900			—			136,900			136,900
Debt Capitalization		2,101,769			2,367,545			2,101,769			2,367,545			2,402,472
TOTAL MARKET CAPITALIZATION	$	3,337,292		$	2,973,126		$	3,337,292		$	2,973,126		$	3,241,799
Equity Capitalization/Total Market Capitalization		37.0	%		20.4	%		37.0	%		20.4	%		25.9	%
Debt Capitalization/Total Market Capitalization		63.0	%		79.6	%		63.0	%		79.6	%		74.1	%
Unsecured Debt Balance/Total Debt		0.0	%		5.8	%		0.0	%		5.8	%		5.7	%
DISTRIBUTIONS PER COMMON SHARE
Ordinary Dividends	$	—		$	0.15		$	—		$	0.37		$	0.60
Capital Gain Distributions(5)		—			—			—			0.01			—
Non-Dividend Distributions		0.16			—			0.63			0.22			—
Distributions per common share	$	0.16		$	0.15		$	0.63		$	0.60		$	0.60
Annualized Dividend Yield(6)		3.6	%		5.7	%		3.6	%		5.7	%		4.1	%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	38,873		$	36,205		$	38,873		$	27,481		$	47,107
Revolving Facility		250,000			250,000			250,000			250,000			150,000
Amount Outstanding		—			(55,000	)		—			(95,000	)		—
Letters of Credit		—			—			—			—			(1,534	)
Available Revolving Facility(7)		250,000			195,000			250,000			155,000			148,466
TOTAL	$	288,873		$	231,205		$	288,873		$	182,481		$	195,573
Shelf Registration	$	798,750		$	1,000,000		$	798,750		$	1,000,000		$	831,812

⁽¹⁾  Amounts exclude debt discount on our Exchangeable Notes and debt premium on mortgage loans.

⁽²⁾ The secured debt balance includes $182,000 in Term Loans outstanding as of December 31, 2012, $240,000 in Term Loans outstanding as of December 31, 2011, and $347,200 in Term Loans outstanding as of December 31, 2010.

⁽³⁾ The secured debt balance includes Revolving Facility balances of $95,000 as of December 31, 2011.

⁽⁴⁾ The unsecured debt balance includes Exchangeable Notes of $136,900 as of December 31, 2011 and December 31, 2010.

⁽⁵⁾ Includes $.004 of unrecaptured Section 1250 gain as of December 31, 2011.

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

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

Page 3

Pennsylvania Real Estate Investment Trust

Statement of Operations - Quarters Ended December 31, 2012 and December 31, 2011

Proportionate Consolidation Method

(in thousands)

	Quarter Ended December 31, 2012												Quarter Ended December 31, 2011
	Continuing Operations												Continuing Operations
	GAAP			PREIT’s share of unconsolidated partnerships(1)			Discontinued operations			Total			GAAP			PREIT’s share of unconsolidated partnerships(1)			Discontinued operations			Total
REVENUE:
Base rent	$	74,426		$	6,779		$	5,449		$	86,654		$	73,068		$	6,680		$	5,788		$	85,536
Expense reimbursements		29,716			2,591			1,373			33,680			30,716			2,730			1,663			35,109
Percentage rent		3,615			143			82			3,840			3,906			86			87			4,079
Lease termination revenue		62			16			—			78			917			24			80			1,021
Other real estate revenue		6,667			381			236			7,284			6,651			455			256			7,362
Real estate revenue		114,486			9,910			7,140			131,536			115,258			9,975			7,874			133,107
Other income		1,280			—			—			1,280			1,004			—			—			1,004
Total revenue		115,766			9,910			7,140			132,816			116,262			9,975			7,874			134,111
EXPENSES:
Operating expenses:
CAM and real estate taxes		(34,318	)		(2,038	)		(2,745	)		(39,101	)		(33,824	)		(2,057	)		(2,591	)		(38,472	)
Utilities		(4,674	)		(282	)		(38	)		(4,994	)		(5,578	)		(225	)		(56	)		(5,859	)
Other operating expenses		(5,694	)		(693	)		(532	)		(6,919	)		(6,860	)		(635	)		(566	)		(8,061	)
Total operating expenses		(44,686	)		(3,013	)		(3,315	)		(51,014	)		(46,262	)		(2,917	)		(3,213	)		(52,392	)
Depreciation and amortization		(33,894	)		(1,859	)		(1,934	)		(37,687	)		(32,345	)		(2,209	)		(2,280	)		(36,834	)
Other expenses:
General and administrative expenses		(8,720	)		—			—			(8,720	)		(10,390	)		—			—			(10,390	)
Provision for employee separation expense		(3,683	)		—			—			(3,683	)		—			—			—			—
Project costs and other expenses		(1,159	)		—			—			(1,159	)		(532	)		—			—			(532	)
Total other expenses		(13,562	)		—			—			(13,562	)		(10,922	)		—			—			(10,922	)
Interest expense, net(2)		(30,587	)		(2,809	)		(1,171	)		(34,567	)		(30,885	)		(2,828	)		(970	)		(34,683	)
Total expenses		(122,729	)		(7,681	)		(6,420	)		(136,830	)		(120,414	)		(7,954	)		(6,463	)		(134,831	)
Loss before equity in income of partnerships, gains on sales of real estate and discontinued operations		(6,963	)		2,229			720			(4,014	)		(4,152	)		2,021			1,411			(720	)
Equity in income of partnerships		2,229			(2,229	)		—			—			2,021			(2,021	)		—			—
Gains on sales of non-operating real estate		—			—			—			—			140			—			—			140
Loss from continuing operations		(4,734	)		—			720			(4,014	)		(1,991	)		—			1,411			(580	)
Discontinued operations:
Operating results from discontinued operations		720			—			(720	)		—			1,411			—			(1,411	)		—
Impairment of assets of discontinued operations		(3,805	)		—			—			(3,805	)		—			—			—			—
Gains on sales of discontinued operations		947			—			—			947			—			—			—			—
(Loss) income from discontinued operations		(2,138	)		—			(720	)		(2,858	)		1,411			—			(1,411	)		—
Net loss		(6,872	)		—			—			(6,872	)		(580	)		—			—			(580	)
Less: net loss attributed to noncontrolling interest		273			—			—			273			23			—			—			23
Net loss attributable to PREIT	$	(6,599	)	$	—		$	—		$	(6,599	)	$	(557	)	$	—		$	—		$	(557	)
Less: preferred share dividends		(3,768	)		—			—			(3,768	)		—			—			—			—
Net loss attributable to PREIT common shareholders	$	(10,367	)	$	—		$	—		$	(10,367	)	$	(557	)	$	—		$	—		$	(557	)

⁽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 $151 and $589 for the quarters ended December 31, 2012 and 2011, respectively.

Page 4

Pennsylvania Real Estate Investment Trust

Statement of Operations - Years Ended December 31, 2012 and December 31, 2011

Proportionate Consolidation Method

(in thousands)

	Year Ended December 31, 2012												Year Ended December 31, 2011
	Continuing Operations												Continuing Operations
	GAAP			PREIT’s share of unconsolidated partnerships(1)			Discontinued operations			Total			GAAP			PREIT’s share of unconsolidated partnerships(1)			Discontinued operations			Total
REVENUE:
Base rent	$	276,524		$	26,261		$	21,219		$	324,004		$	271,314		$	25,822		$	22,031		$	319,167
Expense reimbursements		121,108			10,546			5,211			136,865			125,250			10,365			5,844			141,459
Percentage rent		5,714			229			107			6,050			6,368			164			126			6,658
Lease termination revenue		1,760			74			68			1,902			1,091			78			768			1,937
Other real estate revenue		16,542			1,361			734			18,637			16,268			1,405			788			18,461
Real estate revenue		421,648			38,471			27,339			487,458			420,291			37,834			29,557			487,682
Other income		5,534			—			—			5,534			6,712			—			—			6,712
Total revenue		427,182			38,471			27,339			492,992			427,003			37,834			29,557			494,394
EXPENSES:
Operating expenses:
CAM and real estate taxes		(135,049	)		(8,132	)		(10,598	)		(153,779	)		(133,850	)		(8,316	)		(10,577	)		(152,743	)
Utilities		(22,198	)		(816	)		(206	)		(23,220	)		(24,265	)		(862	)		(264	)		(25,391	)
Other operating expenses		(20,677	)		(2,529	)		(1,870	)		(25,076	)		(22,611	)		(2,277	)		(2,266	)		(27,154	)
Total operating expenses		(177,924	)		(11,477	)		(12,674	)		(202,075	)		(180,726	)		(11,455	)		(13,107	)		(205,288	)
Depreciation and amortization		(129,459	)		(7,396	)		(7,263	)		(144,118	)		(129,704	)		(8,403	)		(10,726	)		(148,833	)
Other expenses:
General and administrative expenses		(37,538	)		—			—			(37,538	)		(38,901	)		—			—			(38,901	)
Provision for employee separation expense		(9,437	)		—			—			(9,437	)		—			—			—			—
Impairment of assets		—			—			—			—			(24,359	)		—			—			(24,359	)
Project costs and other expenses		(1,936	)		(2	)		—			(1,938	)		(964	)		—			—			(964	)
Total other expenses		(48,911	)		(2	)		—			(48,913	)		(64,224	)		—			—			(64,224	)
Interest expense, net(2)		(122,118	)		(11,258	)		(4,202	)		(137,578	)		(127,148	)		(11,341	)		(5,108	)		(143,597	)
Total expenses		(478,412	)		(30,133	)		(24,139	)		(532,684	)		(501,802	)		(31,199	)		(28,941	)		(561,942	)
Loss before equity in income of partnerships and gains on sales of real estate and discontinued operations		(51,230	)		8,338			3,200			(39,692	)		(74,799	)		6,635			616			(67,548	)
Equity in income of partnerships		8,338			(8,338	)		—			—			6,635			(6,635	)		—			—
Gains on sales of real estate		—			—			—			—			740			—			—			740
Gains on sales of non-operating real estate		—			—			—			—			850			—			—			850
Loss from continuing operations		(42,892	)		—			3,200			(39,692	)		(66,574	)		—			616			(65,958	)
Discontinued operations
Operating results from discontinued operations		3,200			—			(3,200	)		—			616			—			(616	)		—
Impairment of assets of discontinued operations		(3,805	)		—			—			(3,805	)		(27,977	)		—			—			(27,977	)
Gains on sales of discontinued operations		947			—			—			947			—			—			—			—
Income (loss) from discontinued operations		342			—			(3,200	)		(2,858	)		(27,361	)		—			(616	)		(27,977	)
Net loss		(42,550	)		—			—			(42,550	)		(93,935	)		—			—			(93,935	)
Less: net loss attributed to noncontrolling interests		1,713			—			—			1,713			3,774			—			—			3,774
Net loss attributable to PREIT	$	(40,837	)	$	—		$	—		$	(40,837	)	$	(90,161	)	$	—		$	—		$	(90,161	)
Less: preferred share dividends		(7,984	)		—			—			(7,984	)		—			—			—			—
Net loss attributable to PREIT common shareholders	$	(48,821	)	$	—		$	—		$	(48,821	)	$	(90,161	)	$	—		$	—		$	(90,161	)

⁽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 $1,549 and $2,032 for the twelve months ended December 31, 2012 and 2011, respectively.

Page 5

Pennsylvania Real Estate Investment Trust

Statement of Net Operating Income⁽¹⁾

(in thousands)

	Quarter Ended December 31, 2012									Quarter Ended December 31, 2011
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	80,822		$	5,832		$	86,654		$	79,388		$	6,148		$	85,536
Expense reimbursements		32,277			1,403			33,680			33,437			1,672			35,109
Percentage rent		3,758			82			3,840			3,992			87			4,079
Lease termination revenue		78			—			78			941			80			1,021
Other real estate revenue		6,928			356			7,284			6,985			377			7,362
TOTAL REAL ESTATE REVENUE		123,863			7,673			131,536			124,743			8,364			133,107
Operating expenses:
CAM and real estate taxes		(35,955	)		(3,146	)		(39,101	)		(35,449	)		(3,023	)		(38,472	)
Utilities		(4,957	)		(37	)		(4,994	)		(5,803	)		(56	)		(5,859	)
Other operating expenses		(6,372	)		(547	)		(6,919	)		(7,500	)		(561	)		(8,061	)
TOTAL OPERATING EXPENSES		(47,284	)		(3,730	)		(51,014	)		(48,752	)		(3,640	)		(52,392	)
NET OPERATING INCOME	$	76,579		$	3,943		$	80,522		$	75,991		$	4,724		$	80,715

	Year Ended December 31, 2012									Year Ended December 31, 2011
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	301,355		$	22,649		$	324,004		$	295,757		$	23,410		$	319,167
Expense reimbursements		131,589			5,276			136,865			135,576			5,883			141,459
Percentage rent		5,943			107			6,050			6,533			125			6,658
Lease termination revenue		1,834			68			1,902			1,168			769			1,937
Other real estate revenue		17,414			1,223			18,637			17,190			1,271			18,461
TOTAL REAL ESTATE REVENUE		458,135			29,323			487,458			456,224			31,458			487,682
Operating expenses:
CAM and real estate taxes		(141,511	)		(12,268	)		(153,779	)		(140,531	)		(12,212	)		(152,743	)
Utilities		(23,015	)		(205	)		(23,220	)		(25,127	)		(264	)		(25,391	)
Other operating expenses		(23,103	)		(1,973	)		(25,076	)		(24,771	)		(2,383	)		(27,154	)
TOTAL OPERATING EXPENSES		(187,629	)		(14,446	)		(202,075	)		(190,429	)		(14,859	)		(205,288	)
NET OPERATING INCOME	$	270,506		$	14,877		$	285,383		$	265,795		$	16,599		$	282,394

⁽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

Computation of Earnings Per Share

(in thousands, except per share amounts)

	Quarter Ended December 31,						Years Ended December 31,
	2012			2011			2012			2011
Loss from continuing operations	$	(4,734	)	$	(1,991	)	$	(42,892	)	$	(66,574	)
Preferred share dividends		(3,768	)		—			(7,984	)		—
Noncontrolling interest		188			80			1,726			2,674
Dividends on unvested restricted shares		(119	)		(143	)		(441	)		(547	)
Loss used to calculate earnings per share - basic and diluted	$	(8,433	)	$	(2,054	)	$	(49,591	)	$	(64,447	)
(Loss) income from discontinued operations	$	(2,138	)	$	1,411		$	342		$	(27,361	)
Noncontrolling interest in discontinued operations		85			(57	)		(13	)		1,100
(Loss) income from discontinued operations used to calculate earnings per share - basic and diluted	$	(2,053	)	$	1,354		$	329		$	(26,261	)
Basic and diluted loss per share
Basic loss per share	$	(0.15	)	$	(0.04	)	$	(0.90	)	$	(1.18	)
(Loss) income from discontinued operations		(0.04	)		0.03			0.01			(0.48	)
	$	(0.19	)	$	(0.01	)	$	(0.89	)	$	(1.66	)
Weighted average common shares outstanding		55,988			55,668			55,867			55,621
Weighted average unvested restricted shares		(741	)		(951	)		(745	)		(982	)
Weighted average shares outstanding - basic		55,247			54,717			55,122			54,639
Weighted average effect of common share equivalents(1)		—			—			—			—
Total weighted average shares outstanding - diluted		55,247			54,717			55,122			54,639

⁽¹⁾ The Company had net losses for all periods presented. Therefore, the effect of common share equivalents of 1,149 and 369 for the quarters ended December 31, 2012 and 2011, respectively, and 1,131 and 502 for the twelve months ended December 31, 2012 and 2011, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive.

Page 7

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)

	Quarter Ended December 31, 2012												Quarter Ended December 31, 2011
	Continuing Operations												Continuing Operations
	Consolidated			PREIT’s share of unconsolidated partnerships			Discontinued operations			Total			Consolidated			PREIT’s share of unconsolidated partnerships			Discontinued operations			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue	$	114,486		$	9,910		$	7,140		$	131,536		$	115,258		$	9,975		$	7,874		$	133,107
Operating expenses		(44,686	)		(3,013	)		(3,315	)		(51,014	)		(46,262	)		(2,917	)		(3,213	)		(52,392	)
NET OPERATING INCOME		69,800			6,897			3,825			80,522			68,996			7,058			4,661			80,715
General and administrative expenses		(8,720	)		—			—			(8,720	)		(10,390	)		—			—			(10,390	)
Provision for employee separation expense		(3,683	)		—			—			(3,683	)		—			—			—			—
Other income		1,280			—			—			1,280			1,004			—			—			1,004
Project costs and other expenses		(1,159	)		—			—			(1,159	)		(532	)		—			—			(532	)
Interest expense, net		(30,587	)		(2,809	)		(1,171	)		(34,567	)		(30,885	)		(2,828	)		(970	)		(34,683	)
Gains on sales of non-operating real estate		—			—			—			—			140			—			—			140
Depreciation on non real estate assets		(220	)		—			—			(220	)		(228	)		—			—			(228	)
Preferred share dividends		(3,768	)		—			—			(3,768	)		—			—			—			—
FFO		22,943			4,088			2,654			29,685			28,105			4,230			3,691			36,026
Depreciation on real estate assets		(33,674	)		(1,859	)		(1,934	)		(37,467	)		(32,117	)		(2,209	)		(2,280	)		(36,606	)
Equity in income of partnerships		2,229			(2,229	)		—			—			2,021			(2,021	)		—			—
Operating results from discontinued operations		720			—			(720	)		—			1,411			—			(1,411	)		—
Impairment of assets of discontinued operations		(3,805	)		—			—			(3,805	)		—			—			—			—
Gains on sales of discontinued operations		947			—			—			947			—			—			—			—
Preferred share dividends		3,768			—			—			3,768			—			—			—			—
		��
Net loss	$	(6,872	)	$	—		$	—		$	(6,872	)	$	(580	)	$	—		$	—		$	(580	)
FFO	$	22,943		$	4,088		$	2,654		$	29,685		$	28,105		$	4,230		$	3,691		$	36,026
Provision for employee separation expenses		3,683			—			—			3,683			—			—			—			—
Loss on hedge ineffectiveness		1,162			—			—			1,162			—			—			—			—
Accelerated amortization of deferred financing costs		690			—			—			690			—			—			—			—
FFO AS ADJUSTED	$	28,478		$	4,088		$	2,654		$	35,220		$	28,105		$	4,230		$	3,691		$	36,026
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO AS ADJUSTED	$	28,478		$	4,088		$	2,654		$	35,220		$	28,105		$	4,230		$	3,691		$	36,026
Adjustments:
Straight line rent		(988	)		4			46			(938	)		(267	)		49			32			(186	)
Recurring capital expenditures		(6,364	)		(4	)		—			(6,368	)		(5,325	)		(174	)		(490	)		(5,989	)
Tenant allowances		(11,490	)		(686	)		(201	)		(12,377	)		(3,050	)		(139	)		(316	)		(3,505	)
Capitalized leasing costs		(1,199	)		—			—			(1,199	)		(1,245	)		—			—			(1,245	)
Amortization of mortgage loan premium		—			—			—			—			(419	)		—			—			(419	)
Amortization of above- and below-market lease intangibles		(106	)		(30	)		2			(134	)		26			(41	)		30			15
Amortization of exchangeable notes debt discount		—			—			—			—			500			—			—			500
FAD	$	8,331		$	3,372		$	2,501		$	14,204		$	18,325		$	3,925		$	2,947		$	25,197
Weighted average number of shares outstanding											55,247												54,717
Weighted average effect of full conversion of OP Units											2,301												2,329
Effect of common share equivalents											1,149												369
Total weighted average shares outstanding, including OP Units											58,697												57,415
FFO PER DILUTED SHARE AND OP UNIT										$	0.51											$	0.63
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED										$	0.60											$	0.63
FAD PER DILUTED SHARE AND OP UNIT										$	0.24											$	0.44
DIVIDEND PER COMMON SHARE										$	0.16											$	0.15
PAYOUT RATIOS
Payout ratio of FFO											38.6	%(1)											68.9	%(2)
Payout ratio of FFO as adjusted											34.5	%(1)											33.4	%(2)
Payout ratio of FAD											66.1	%(1)											57.5	%(2)

⁽¹⁾  Twelve months ended December 31, 2012.

⁽²⁾  Twelve months ended December 31, 2011.

Page 8

	Year Ended December 31, 2012												Year Ended December 31, 2011
	Continuing Operations												Continuing Operations
	Consolidated			PREIT’s share of unconsolidated partnerships			Discontinued operations			Total			Consolidated			PREIT’s share of unconsolidated partnerships			Discontinued operations			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue	$	421,648		$	38,471		$	27,339		$	487,458		$	420,291		$	37,834		$	29,557		$	487,682
Operating expenses		(177,924	)		(11,477	)		(12,674	)		(202,075	)		(180,726	)		(11,455	)		(13,107	)		(205,288	)
NET OPERATING INCOME		243,724			26,994			14,665			285,383			239,565			26,379			16,450			282,394
General and administrative expenses		(37,538	)		—			—			(37,538	)		(38,901	)		—			—			(38,901	)
Provision for employee separation expense		(9,437	)		—			—			(9,437	)		—			—			—			—
Other income		5,534			—			—			5,534			6,712			—			—			6,712
Project costs and other expenses		(1,936	)		(2	)		—			(1,938	)		(964	)		—			—			(964	)
Interest expense, net		(122,118	)		(11,258	)		(4,202	)		(137,578	)		(127,148	)		(11,341	)		(5,108	)		(143,597	)
Gains on sales of non operating real estate		—			—			—			—			850			—			—			850
Depreciation on non real estate assets		(825	)		—			—			(825	)		(909	)		—			—			(909	)
Preferred share dividends		(7,984	)		—						(7,984	)		—			—			—			—
FFO		69,420			15,734			10,463			95,617			79,205			15,038			11,342			105,585
Gains on sales of real estate		—			—			—			—			740			—			—			740
Depreciation on real estate assets		(128,634	)		(7,396	)		(7,263	)		(143,293	)		(128,795	)		(8,403	)		(10,726	)		(147,924	)
Impairment of assets		—			—			—			—			(24,359	)		—			—			(24,359	)
Equity in income of partnerships		8,338			(8,338	)		—			—			6,635			(6,635	)		—			—
Operating results from discontinued operations		3,200			—			(3,200	)		—			616			—			(616	)		—
Impairment of assets of discontinued operations		(3,805	)		—			—			(3,805	)		(27,977	)		—			—			(27,977	)
Gains on sales of discontinued operations		947			—			—			947			—			—			—			—
Preferred share dividends		7,984			—			—			7,984			—			—			—			—
Net loss	$	(42,550	)	$	—		$	—		$	(42,550	)	$	(93,935	)	$	—		$	—		$	(93,935	)
FFO	$	69,420		$	15,734		$	10,463		$	95,617		$	79,205		$	15,038		$	11,342		$	105,585
Provision for employee separation expenses		9,437			—			—			9,437			—			—			—			—
Loss on hedge ineffectiveness		1,162			—			—			1,162			—			—			—			—
Accelerated amortization of deferred financing costs		690			—			—			690			—			—			—			—
FFO AS ADJUSTED	$	80,709		$	15,734		$	10,463		$	106,906		$	79,205		$	15,038		$	11,342		$	105,585
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO AS ADJUSTED	$	80,709		$	15,734		$	10,463		$	106,906		$	79,205		$	15,038		$	11,342		$	105,585
Adjustments:
Straight line rent		(2,383	)		63			149			(2,171	)		(1,018	)		232			688			(98	)
Recurring capital expenditures		(13,923	)		(298	)		(123	)		(14,344	)		(14,914	)		(422	)		(1,585	)		(16,921	)
Tenant allowances		(27,528	)		(1,084	)		(756	)		(29,368	)		(11,142	)		(513	)		(2,651	)		(14,306	)
Capitalized leasing costs		(5,336	)		—			—			(5,336	)		(4,999	)		—			—			(4,999	)
Amortization of mortgage loan premium		(282	)		—			—			(282	)		(1,287	)		—			—			(1,287	)
Amortization of above- and below-market lease intangibles		(304	)		(124	)		8			(420	)		97			(176	)		120			41
Amortization of exchangeable notes debt discount		849			—			—			849			1,960			—			—			1,960
FAD	$	31,802		$	14,291		$	9,741		$	55,834		$	47,902		$	14,159		$	7,914		$	69,975
Weighted average number of shares outstanding											55,122												54,639
Weighted average effect of full conversion of OP Units											2,310												2,329
Effect of common share equivalents											1,131												502
Total weighted average shares outstanding, including OP Units											58,563												57,470
FFO PER DILUTED SHARE AND OP UNIT										$	1.63											$	1.84
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED										$	1.83											$	1.84
FAD PER DILUTED SHARE AND OP UNIT										$	0.95											$	1.22
DIVIDEND PER COMMON SHARE										$	0.63											$	0.60
PAYOUT RATIOS
Payout ratio of FFO											38.6	%(1)											32.7	%(2)
Payout ratio of FFO as adjusted											34.5	%(1)											32.7	%(2)
Payout ratio of FAD											66.1	%(1)											49.3	%(2)

⁽¹⁾  Twelve months ended December 31, 2012.

⁽²⁾  Twelve months ended December 31, 2011

Page 9

Pennsylvania Real Estate Investment Trust

2012 Leasing Activity Summary Including Properties Held for Sale

				Avg Base Rent psf				Change in Base Rent psf						Avg Gross Rent psf				Change in Gross Rent psf						Annualized Tenant Improvements
	Number	GLA		Previous		New(1)		Dollar			%			Previous		New(1)		Dollar			%			psf(2)
New Leases - Previously Leased Space:
1st Quarter	32		119,188	$	20.58	$	21.54	$	0.96			4.7	%	$	27.57	$	27.21	$	(0.36	)		(1.3	)%	$	3.02
2nd Quarter	33		103,243		31.36		29.49		(1.87	)		(6.0	)%		42.93		39.44		(3.49	)		(8.1	)%		2.92
3rd Quarter	65		65,377		51.59		57.06		5.47			10.6	%		61.74		65.07		3.33			5.4	%		2.32
4th Quarter	46		100,998		30.34		32.10		1.76			5.8	%		39.25		40.49		1.24			3.2	%		0.38
Total/Average	176		388,806	$	31.19	$	32.37	$	1.17			3.8	%	$	40.43	$	40.27	$	(0.16	)		(0.4	)%	$	2.19
New Leases - Previously Vacant Space:(3)
1st Quarter	35		124,425		N/A	$	28.60	$	28.60			N/A			N/A		37.64	$	37.64			N/A		$	3.82
2nd Quarter	35		168,069		N/A		17.98		17.98			N/A			N/A		20.36		20.36			N/A			3.79
3rd Quarter	31		129,921		N/A		18.33		18.33			N/A			N/A		21.34		21.34			N/A			1.49
4th Quarter	23		77,598		N/A		23.89		23.89			N/A			N/A		32.42		32.42			N/A			2.08
Total/Average	124		500,013		N/A	$	21.63	$	21.63			N/A			N/A	$	26.79	$	26.79			N/A		$	2.93
Renewal:(4)
1st Quarter	139		481,428	$	22.28	$	22.92	$	0.64			2.9	%	$	29.94	$	29.94	$	—			0.0	%	$	—
2nd Quarter	172		538,905		26.48		27.71		1.23			4.6	%		33.88		34.38		0.50			1.5	%		0.01
3rd Quarter	146		463,763		23.97		24.92		0.95			4.0	%		29.63		30.95		1.32			4.5	%		0.02
4th Quarter	87		276,888		22.93		23.49		0.56			2.4	%		29.40		29.82		0.42			1.4	%		—
Total/Average	544		1,760,984	$	24.11	$	25.00	$	0.89			3.7	%	$	30.98	$	31.55	$	0.57			1.8	%	$	0.01
Anchor New:
1st Quarter	3		285,136		N/A	$	13.87	$	13.87			N/A			N/A	$	13.95	$	13.95			N/A		$	3.40
2nd Quarter	0		—		N/A		—		—			N/A			N/A		—		—			N/A			—
3rd Quarter	0		—		N/A		—		—			N/A			N/A		—		—			N/A			—
4th Quarter	0		—		N/A		—		—			N/A			N/A		—		—			N/A			—
Total/Average	3		285,136		N/A	$	13.87	$	13.87			N/A			N/A	$	13.95	$	13.95			N/A		$	3.40
Anchor Renewal:
1st Quarter	1		100,115	$	3.13	$	3.13	$	—			0.0	%	$	3.13	$	3.13	$	—			0.0	%	$	—
2nd Quarter	1		212,000		0.35		0.35		—			0.0	%		0.35		0.35		—			0.0	%		—
3rd Quarter	4		353,671		2.94		2.94		—			0.0	%		3.46		3.46		—			0.0	%		—
4th Quarter	3		236,223		3.58		2.97		(0.61	)		(17.0	)%		4.35		3.73		(0.62	)		(14.3	)%		—
Total/Average	9		902,009	$	2.52	$	2.36	$	(0.16	)		(6.3	)%	$	2.93	$	2.76	$	(0.16	)		(5.6	)%	$	—

⁽¹⁾  New rent is the initial amount payable upon rent commencement.

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

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

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

Page 10

Pennsylvania Real Estate Investment Trust

2012 Leasing Activity Summary Excluding Properties Held for Sale

				Avg Base Rent psf				Change in Base Rent psf						Avg Gross Rent psf				Change in Gross Rent psf						Annualized Tenant Improvements psf(2)
	Number	GLA		Previous		New(1)		Dollar			%			Previous		New(1)		Dollar			%
New Leases - Previously Leased Space:
1st Quarter	32		119,188	$	20.58	$	21.54	$	0.96			4.7	%	$	27.57	$	27.21	$	(0.36	)		(1.3	)%	$	3.02
2nd Quarter	33		103,243		31.36		29.49		(1.87	)		(6.0	)%		42.93		39.44		(3.49	)		(8.1	)%		2.92
3rd Quarter	62		57,953		52.70		60.31		7.61			14.4	%		63.32		68.95		5.63			8.9	%		2.02
4th Quarter	44		99,773		30.22		31.79		1.57			5.2	%		39.01		40.28		1.27			3.3	%		0.38
Total/Average	171		380,157	$	30.93	$	32.30	$	1.37			4.4	%	$	40.19	$	40.32	$	0.13			0.3	%	$	2.15
New Leases - Previously Vacant Space:(3)
1st Quarter	32		117,400		N/A	$	29.62	$	29.62			N/A			N/A		39.21	$	39.21			N/A		$	4.05
2nd Quarter	33		165,304		N/A		17.77		17.77			N/A			N/A		20.10		20.10			N/A			3.85
3rd Quarter	31		129,921		N/A		18.33		18.33			N/A			N/A		21.34		21.34			N/A			1.49
4th Quarter	23		77,598		N/A		23.89		23.89			N/A			N/A		32.42		32.42			N/A			2.08
Total/Average	119		490,223		N/A	$	21.73	$	21.73			N/A			N/A	$	26.96	$	26.96			N/A		$	2.99
Renewal:(4)
1st Quarter	132		461,954	$	22.26	$	23.00	$	0.74			3.3	%	$	30.21	$	30.29	$	0.08			0.3	%	$	—
2nd Quarter	158		472,995		27.33		28.77		1.44			5.3	%		35.19		35.82		0.63			1.8	%		0.02
3rd Quarter	137		424,324		24.24		25.27		1.03			4.2	%		30.25		31.69		1.44			4.8	%		0.02
4th Quarter	81		247,482		23.81		25.11		1.30			5.5	%		30.84		31.60		0.76			2.5	%		—
Total/Average	508		1,606,755	$	24.51	$	25.62	$	1.11			4.5	%	$	31.78	$	32.49	$	0.71			2.2	%	$	0.01
Anchor New:
1st Quarter	3		285,136		N/A	$	13.87	$	13.87			N/A			N/A	$	13.95	$	13.95			N/A		$	3.40
2nd Quarter	0		—		N/A		—		—			N/A			N/A		—		—			N/A			—
3rd Quarter	0		—		N/A		—		—			N/A			N/A		—		—			N/A			—
4th Quarter	0		—		N/A		—		—			N/A			N/A		—		—			N/A			—
Total/Average	3		285,136		N/A	$	13.87	$	13.87			N/A			N/A	$	13.95	$	13.95			N/A		$	3.40
Anchor Renewal:
1st Quarter	1		100,115	$	3.13	$	3.13	$	—			0.0	%	$	3.13	$	3.13	$	—			0.0	%	$	—
2nd Quarter	1		212,000		0.35		0.35		—			0.0	%		0.35		0.35		—			0.0	%		—
3rd Quarter	4		353,671		2.94		2.94		—			0.0	%		3.46		3.46		—			0.0	%		—
4th Quarter	2		167,240		3.86		3.63		(0.23	)		(6.0	)%		4.94		4.71		(0.23	)		(4.7	)%		—
Total/Average	8		833,026	$	2.49	$	2.44	$	(0.05	)		(1.9	)%	$	2.93	$	2.88	$	(0.05	)		(1.6	)%	$	—

⁽¹⁾  New rent is the initial amount payable upon rent commencement.

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

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

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

Page 11

Pennsylvania Real Estate Investment Trust

Summarized Rent Per Square Foot and Occupancy⁽¹⁾ Percentages

	December 31, 2012													December 31, 2011													Change
	% Rolling 12 Mo. NOI			Avg Base Rent(2)		Avg Gross Rent(3)		Occupancy						% Rolling 12 Mo. NOI			Avg Base Rent(2)		Avg Gross Rent(3)		Occupancy						Avg  Base Rent(2)			Avg Gross Rent(3)			Occupancy
								Total			Non- Anchor										Total			Non- Anchor									Total			Non- Anchor
Premier Malls		30.9	%	$	43.41	$	63.51		97.5	%		96.3	%		29.8	%	$	42.32	$	60.90		96.7	%		95.4	%		2.6	%		4.3	%		0.8	%		0.9	%
Core Growth Malls		44.6	%	$	30.99	$	41.43		93.9	%		91.5	%		44.8	%	$	31.22	$	41.35		92.8	%		91.1	%		-0.7	%		0.2	%		1.1	%		0.4	%
Opportunistic Malls		13.4	%	$	21.58	$	25.95		94.1	%		89.0	%		13.4	%	$	22.42	$	26.66		91.5	%		85.2	%		-3.7	%		-2.7	%		2.6	%		3.8	%
Non Core Malls		1.5	%	$	19.84	$	23.40		86.7	%		81.0	%		1.5	%	$	22.29	$	25.25		91.5	%		81.0	%		-11.0	%		-7.3	%		-4.8	%		0.0	%
Total Malls		90.3	%	$	31.90	$	42.73		94.3	%		91.7	%		89.6	%	$	31.98	$	42.29		93.1	%		90.3	%		-0.3	%		1.1	%		1.2	%		1.4	%
Strip and Power Centers		4.3	%	$	15.95	$	18.13		94.0	%		91.9	%		4.4	%	$	16.27	$	18.40		92.1	%		92.9	%		-2.0	%		-1.5	%		1.9	%		-1.0	%
Total Retail Properties		94.6	%	$	28.99	$	38.61		94.3	%		91.7	%		94.0	%	$	29.13	$	38.38		93.0	%		90.6	%		-0.5	%		0.6	%		1.3	%		1.1	%
Held for Sale Properties(4)		5.1	%	$	19.67	$	23.28		92.3	%		84.1	%		5.8	%	$	20.08	$	22.90		93.1	%		85.8	%		-2.1	%		1.7	%		-0.8	%		-1.7	%
Other Properties		0.3	%		N/A		N/A		N/A			N/A			0.2	%		N/A		N/A		N/A			N/A			N/A			N/A			N/A			N/A
Total Portfolio		100.0	%	$	28.25	$	37.39		94.1	%		91.1	%		100.0	%	$	28.39	$	37.11		93.0	%		90.2	%		-0.5	%		0.7	%		1.1	%		0.9	%

⁽¹⁾  Occupancy for both periods presented includes all tenants irrespective of the terms of their agreement.

⁽²⁾  Average base rent for malls 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. Average base rent for strip and power centers includes all non-anchor space owned by the Company regardless of size and leased to tenants who pay fixed rent.

⁽³⁾  Average gross rent for malls 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 plus additional charges or pay a percentage of sales in lieu of fixed rent. Average gross rent for strip and power centers includes all non-anchor space owned by the Company regardless of size and leased to tenants who pay fixed rent plus additional charges or pay a percentage of sales in lieu of fixed rent.

⁽⁴⁾  Includes Christiana Center, Orlando Fashion Square, Paxton Towne Centre, and Phillipsburg Mall.

Page 12

Pennsylvania Real Estate Investment Trust

Mall Sales and Rent Per Square Foot

	December 31, 2012										December 31, 2011										Change
	Avg Base Rent(1)		Avg Comp Sales(2)		Non Anchor Occup. %(2)			Occup. Cost Ratio(2)			Avg Base Rent(1)		Avg Comp Sales(2)		Non Anchor Occup. %(2)			Occup. Cost Ratio(2)			Avg Base Rent(1)			Avg Comp Sales(2)			Non Anchor Occup. %(2)			Occup. Cost Ratio(2)
Premier Malls
Cherry Hill Mall	$	49.89	$	632		94.1	%		13.0	%	$	48.02	$	599		93.7	%		12.7	%		3.9	%		5.5	%		0.4	%		0.3	%
Lehigh Valley Mall		44.37		568		97.0	%		11.6	%		45.44		526		95.4	%		11.7	%		-2.4	%		8.0	%		1.6	%		-0.1	%
Woodland Mall		39.92		530		98.3	%		11.6	%		40.07		526		95.3	%		12.3	%		-0.4	%		0.8	%		3.0	%		-0.7	%
Jacksonville Mall		37.89		494		99.6	%		11.2	%		32.90		489		100.0	%		10.4	%		15.2	%		1.0	%		-0.4	%		0.8	%
Dartmouth Mall		31.40		425		95.6	%		10.8	%		30.83		411		96.5	%		11.0	%		1.9	%		3.4	%		-0.9	%		-0.2	%
Willow Grove Park		44.39		409		95.2	%		15.6	%		42.49		400		94.4	%		16.4	%		4.5	%		2.3	%		0.8	%		-0.8	%
Premier Malls Subtotal	$	43.41	$	530		96.3	%		12.4	%	$	42.32	$	507		95.4	%		12.6	%		2.6	%		4.5	%		0.9	%		-0.2	%
Core Growth Malls
Patrick Henry Mall	$	38.23	$	389		95.8	%		14.4	%	$	39.44	$	382		97.9	%		14.5	%		-3.1	%		1.8	%		-2.1	%		-0.1	%
Springfield Mall		33.94		387		94.7	%		14.4	%		33.92		368		95.8	%		14.3	%		0.1	%		5.2	%		-1.1	%		0.1	%
The Mall at Prince Georges		37.39		383		95.7	%		14.3	%		37.35		388		93.7	%		14.6	%		0.1	%		-1.3	%		2.0	%		-0.3	%
Wyoming Valley Mall		30.50		383		93.2	%		11.9	%		30.42		372		91.6	%		12.1	%		0.2	%		3.0	%		1.6	%		-0.2	%
Valley View Mall		29.28		382		95.8	%		11.4	%		29.27		372		96.0	%		12.1	%		0.0	%		2.7	%		-0.2	%		-0.7	%
Valley Mall		26.38		372		91.5	%		11.1	%		25.17		364		96.1	%		10.8	%		4.8	%		2.2	%		-4.6	%		0.3	%
Capital City Mall		34.15		371		94.6	%		11.8	%		33.63		353		96.9	%		11.9	%		1.5	%		5.1	%		-2.3	%		-0.1	%
Viewmont Mall		29.80		370		97.5	%		12.9	%		29.21		377		97.9	%		12.7	%		2.0	%		-1.9	%		-0.4	%		0.2	%
Crossroads Mall		23.16		360		91.7	%		9.5	%		21.46		354		91.2	%		9.1	%		7.9	%		1.7	%		0.5	%		0.4	%
Moorestown Mall		33.34		357		80.6	%		14.6	%		35.67		363		86.2	%		14.9	%		-6.5	%		-1.7	%		-5.6	%		-0.3	%
Francis Scott Key Mall		27.83		344		95.3	%		11.6	%		27.66		335		96.6	%		11.5	%		0.6	%		2.7	%		-1.3	%		0.1	%
The Gallery at Market East		36.26		342		82.7	%		14.8	%		38.07		374		79.8	%		14.0	%		-4.8	%		-8.6	%		2.9	%		0.8	%
Magnolia Mall		27.04		338		98.4	%		11.9	%		27.41		324		97.9	%		12.9	%		-1.4	%		4.3	%		0.5	%		-1.0	%
Exton Square Mall		33.71		329		88.1	%		13.6	%		35.07		332		84.8	%		13.4	%		-3.9	%		-0.9	%		3.3	%		0.2	%
Gadsden Mall		20.87		325		87.2	%		10.2	%		21.04		292		90.5	%		10.2	%		-0.8	%		11.3	%		-3.3	%		0.0	%
Plymouth Meeting Mall		27.81		321		84.9	%		10.3	%		29.33		323		78.6	%		10.4	%		-5.2	%		-0.6	%		6.3	%		-0.1	%
Logan Valley Mall		25.54		321		94.7	%		11.3	%		25.68		314		94.1	%		11.4	%		-0.6	%		2.2	%		0.6	%		-0.1	%
Cumberland Mall		28.63		320		90.5	%		13.1	%		28.13		313		89.4	%		13.1	%		1.7	%		2.2	%		1.1	%		0.0	%
Core Growth Malls Subtotal	$	30.99	$	356		91.5	%		12.6	%	$	31.22	$	352		91.1	%		12.6	%		-0.7	%		1.1	%		0.4	%		0.0	%
Opportunistic Malls
Palmer Park Mall	$	26.01	$	293		84.8	%		11.8	%	$	24.08	$	293		89.2	%		12.0	%		8.0	%		0.0	%		-4.4	%		-0.2	%
Wiregrass Commons Mall		24.08		292		87.4	%		10.4	%		24.94		281		87.7	%		10.9	%		-3.4	%		3.9	%		-0.3	%		-0.5	%
Uniontown Mall		20.03		278		89.7	%		10.5	%		22.53		287		77.4	%		10.7	%		-11.1	%		-3.1	%		12.3	%		-0.2	%
New River Valley Mall		22.76		273		97.8	%		10.7	%		23.43		287		97.3	%		10.0	%		-2.8	%		-4.9	%		0.5	%		0.7	%
Lycoming Mall		20.93		270		96.3	%		10.4	%		20.95		265		95.3	%		10.2	%		-0.1	%		1.9	%		1.0	%		0.2	%
Washington Crown Center		18.53		252		88.7	%		10.8	%		19.51		253		84.8	%		10.8	%		-5.0	%		-0.4	%		3.9	%		0.0	%
Nittany Mall		20.04		251		92.1	%		10.7	%		20.95		273		91.2	%		10.9	%		-4.4	%		-8.1	%		0.9	%		-0.2	%
South Mall		21.81		247		90.7	%		12.7	%		21.94		246		81.7	%		12.6	%		-0.6	%		0.4	%		9.0	%		0.1	%
Beaver Valley Mall		20.73		247		91.5	%		12.5	%		21.73		240		83.9	%		13.3	%		-4.6	%		2.9	%		7.6	%		-0.8	%
Voorhees Town Center		26.01		217		67.9	%		11.2	%		27.42		211		66.7	%		12.4	%		-5.1	%		2.8	%		1.2	%		-1.2	%
Opportunistic Malls Subtotal	$	21.58	$	265		89.0	%		11.0	%	$	22.42	$	266		85.2	%		11.2	%		-3.7	%		-0.4	%		3.8	%		-0.2	%
Non Core Malls
North Hanover Mall	$	21.73	$	250		89.3	%		11.8	%	$	23.56	$	261		91.2	%		12.5	%		-7.8	%		-4.2	%		-1.9	%		-0.7	%
Chambersburg Mall		18.04		215		75.2	%		9.0	%		21.01		230		73.9	%		9.3	%		-14.1	%		-6.5	%		1.3	%		-0.3	%
Non Core Malls Subtotal	$	19.84	$	230		81.0	%		10.3	%	$	22.29	$	244		81.0	%		10.8	%		-11.0	%		-5.7	%		0.0	%		-0.5	%
Held for Sale Malls
Orlando Fashion Square	$	26.59	$	233		80.7	%		13.9	%	$	29.91	$	250		81.5	%		14.6	%		-11.1	%		-6.8	%		-0.8	%		-0.7	%
Phillipsburg Mall		22.76		229		66.5	%		12.4	%		22.44		238		75.1	%		11.7	%		1.4	%		-3.8	%		-8.6	%		0.7	%
Held for Sale Malls Subtotal	$	25.21	$	232		75.5	%		13.4	%	$	26.70	$	245		79.2	%		13.4	%		-5.6	%		-5.3	%		-3.7	%		0.0	%
Malls weighted average	$	31.65	$	372		90.8	%		12.3	%	$	31.77	$	365		89.7	%		12.4	%		-0.4	%		1.9	%		1.1	%		-0.1	%
Continuing Operations Malls	$	31.90	$	378		91.7	%		12.3	%	$	31.98	$	370		90.3	%		12.4	%		-0.3	%		2.2	%		1.4	%		-0.1	%

⁽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

	December 31, 2012						December 31, 2011						Change
	Total			Non-Anchor			Total			Non-Anchor			Total			Non-Anchor
Premier Malls
Cherry Hill Mall		95.1	%		94.1	%		94.7	%		93.7	%		0.4	%		0.4	%
Dartmouth Mall		97.3	%		95.6	%		97.9	%		96.5	%		-0.6	%		-0.9	%
Jacksonville Mall		99.8	%		99.6	%		100.0	%		100.0	%		-0.2	%		-0.4	%
Lehigh Valley Mall		98.2	%		97.0	%		96.6	%		95.4	%		1.6	%		1.6	%
Willow Grove Park(2)		97.7	%		95.2	%		96.6	%		94.4	%		1.1	%		0.8	%
Woodland Mall		98.3	%		98.3	%		95.3	%		95.3	%		3.0	%		3.0	%
Premier Malls Subtotal		97.5	%		96.3	%		96.7	%		95.4	%		0.8	%		0.9	%
Core Growth Malls
Capital City Mall		96.9	%		94.6	%		98.2	%		96.9	%		-1.3	%		-2.3	%
Crossroads Mall		96.1	%		91.7	%		95.9	%		91.2	%		0.2	%		0.5	%
Cumberland Mall		94.3	%		90.5	%		93.6	%		89.4	%		0.7	%		1.1	%
Exton Square Mall		94.6	%		88.1	%		93.1	%		84.8	%		1.5	%		3.3	%
Francis Scott Key Mall		97.1	%		95.3	%		97.9	%		96.6	%		-0.8	%		-1.3	%
Gadsden Mall		94.9	%		87.2	%		96.2	%		90.5	%		-1.3	%		-3.3	%
The Gallery at Market East(3)		72.6	%		82.7	%		62.2	%		79.8	%		10.4	%		2.9	%
Logan Valley Mall		97.8	%		94.7	%		97.5	%		94.1	%		0.3	%		0.6	%
Magnolia Mall		99.3	%		98.4	%		99.1	%		97.9	%		0.2	%		0.5	%
Moorestown Mall		92.2	%		80.6	%		93.8	%		86.2	%		-1.6	%		-5.6	%
Patrick Henry Mall		97.8	%		95.8	%		98.9	%		97.9	%		-1.1	%		-2.1	%
Plymouth Meeting Mall		90.1	%		84.9	%		85.9	%		78.6	%		4.2	%		6.3	%
The Mall at Prince Georges		98.0	%		95.7	%		97.0	%		93.7	%		1.0	%		2.0	%
Springfield Mall		94.7	%		94.7	%		95.8	%		95.8	%		-1.1	%		-1.1	%
Valley Mall		95.1	%		91.5	%		97.7	%		96.1	%		-2.6	%		-4.6	%
Valley View Mall		96.9	%		95.8	%		97.1	%		96.0	%		-0.2	%		-0.2	%
Viewmont Mall		99.0	%		97.5	%		99.2	%		97.9	%		-0.2	%		-0.4	%
Wyoming Valley Mall		97.6	%		93.2	%		97.1	%		91.6	%		0.5	%		1.6	%
Core Growth Malls Subtotal		93.9	%		91.5	%		92.8	%		91.1	%		1.1	%		0.4	%
Opportunistic Malls
Beaver Valley Mall		96.1	%		91.5	%		92.5	%		83.9	%		3.6	%		7.6	%
Lycoming Mall		98.0	%		96.3	%		97.5	%		95.3	%		0.5	%		1.0	%
New River Valley Mall		98.8	%		97.8	%		98.4	%		97.3	%		0.4	%		0.5	%
Nittany Mall		96.1	%		92.1	%		95.6	%		91.2	%		0.5	%		0.9	%
Palmer Park Mall		95.2	%		84.8	%		96.6	%		89.2	%		-1.4	%		-4.4	%
South Mall		93.9	%		90.7	%		88.0	%		81.7	%		5.9	%		9.0	%
Uniontown Mall		95.5	%		89.7	%		86.7	%		77.4	%		8.8	%		12.3	%
Voorhees Town Center		68.3	%		67.9	%		67.2	%		66.7	%		1.1	%		1.2	%
Washington Crown Center		93.9	%		88.7	%		91.7	%		84.8	%		2.2	%		3.9	%
Wiregrass Commons Mall		91.4	%		87.4	%		91.5	%		87.7	%		-0.1	%		-0.3	%
Opportunistic Malls Subtotal		94.1	%		89.0	%		91.5	%		85.2	%		2.6	%		3.8	%
Non Core Malls
Chambersburg Mall		88.4	%		75.2	%		87.8	%		73.9	%		0.6	%		1.3	%
North Hanover Mall(4)		85.0	%		89.3	%		96.3	%		91.2	%		-11.3	%		-1.9	%
Non Core Malls Subtotal		86.7	%		81.0	%		91.5	%		81.0	%		-4.8	%		0.0	%
Held for Sale Malls
Orlando Fashion Square		90.9	%		80.7	%		91.3	%		81.5	%		-0.4	%		-0.8	%
Phillipsburg Mall		85.5	%		66.5	%		89.2	%		75.1	%		-3.7	%		-8.6	%
Held for Sale Malls Subtotal		88.9	%		75.5	%		90.5	%		79.2	%		-1.6	%		-3.7	%
Continuing Operations Malls		94.3	%		91.7	%		93.1	%		90.3	%		1.2	%		1.4	%
Malls weighted average		93.9	%		90.8	%		92.9	%		89.7	%		1.0	%		1.1	%

⁽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⁾ In December 2011, we decommissioned 206,834 sf related to the former Strawbridge’s store that was under redevelopment. This vacant store represented 26.6% of the owned mall GLA as of December 31, 2011. In September 2012, we placed into service 113,692 sf related to the new jcpenney store, 41,152 sf related to the new Nordstrom Rack store, and 24,695 sf related to inline space.

⁽³⁾ The total occupancy percentage for The Gallery at Market East includes a portion of the former Strawbridge’s store that is currently vacant, pending redevelopment. This vacant department store represents 233,616 sf, or 21.4% of the owned mall GLA as of December 31, 2012, and 328,390 sf, or 30.3% of the owned mall GLA as of December 31, 2011.

⁽⁴⁾ The total occupancy percentage for North Hanover Mall includes the former jcpenney store that is currently vacant, pending redevelopment. This vacant department store represents 52,055 sf, or 11.5% of the owned mall GLA as of December 31, 2012.

Page 14

Pennsylvania Real Estate Investment Trust

Strip and Power Center Rent Per Square Foot and Occupancy⁽¹⁾ Percentages

	December 31, 2012								December 31, 2011								Change
	Avg		Occupancy						Avg		Occupancy						Avg			Occupancy
	Base  Rent(2)		Total			Non-Anchor			Base  Rent(2)		Total			Non-Anchor			Base  Rent(2)			Total			Non-Anchor
Continuing Operations
The Commons at Magnolia	$	16.19		85.7	%		82.0	%	$	15.69		80.4	%		75.6	%		3.2	%		5.3	%		6.4	%
Metroplex Shopping Center		20.03		100.0	%		100.0	%		20.03		100.0	%		100.0	%		0.0	%		0.0	%		0.0	%
The Court at Oxford Valley		14.97		88.6	%		86.9	%		15.09		91.7	%		90.5	%		-0.8	%		-3.1	%		-3.6	%
Red Rose Commons		13.14		100.0	%		100.0	%		13.14		100.0	%		100.0	%		0.0	%		0.0	%		0.0	%
Springfield Park		23.88		90.0	%		71.7	%		21.71		98.2	%		94.9	%		10.0	%		-8.2	%		-23.2	%
Whitehall Mall		12.36		93.1	%		85.7	%		13.50		83.1	%		81.8	%		-8.4	%		10.0	%		3.9	%
Continuing Operations Subtotal	$	15.95		94.0	%		91.9	%	$	16.27		92.1	%		92.9	%		-2.0	%		1.9	%		-1.0	%
Held for Sale Properties
Christiana Center		20.82		100.0	%		100.0	%		20.16		96.0	%		89.1	%		3.3	%		4.0	%		10.9	%
Paxton Towne Centre		14.62		98.6	%		98.0	%		14.49		100.0	%		100.0	%		0.9	%		-1.4	%		-2.0	%
Held for Sale Properties Subtotal	$	16.36		99.2	%		98.5	%	$	15.93		98.4	%		97.0	%		2.7	%		0.8	%		1.5	%
Strip and Power Center Weighted Average	$	16.05		95.4	%		93.3	%	$	16.19		93.8	%		93.8	%		-0.9	%		1.6	%		-0.5	%
Continuing Operations Properties	$	15.95		94.0	%		91.9	%	$	16.27		92.1	%		92.9	%		-2.0	%		1.9	%		-1.0	%
Held for Sale Properties	$	16.36		99.2	%		98.5	%	$	15.93		98.4	%		97.0	%		2.7	%		0.8	%		1.5	%

⁽¹⁾  Occupancy for both periods presented includes all tenants irrespective of the terms of their agreement.

⁽²⁾  Base rent reported is for non-anchor tenants only.

Page 15

Pennsylvania Real Estate Investment Trust

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

(dollars in thousands)

Tenant(1)	Total Number  of Locations(2)		Percent of PREIT’s  Total Retail  Gross Rent(3)
Gap, Inc.		43		3.0	%
Limited Brands, Inc.		69		2.8	%
American Eagle Outfitters, Inc.		40		2.7	%
Foot Locker, Inc.		64		2.6	%
J.C. Penney Company, Inc.		29		2.6	%
Sears Holding Corporation		27		1.9	%
Signet Jewelers Limited		38		1.5	%
Zale Corporation		67		1.5	%
Luxottica Group S.p.A.		46		1.4	%
Commonwealth of Pennsylvania		2		1.4	%
Ascena Retail Group, Inc.		45		1.3	%
Abercrombie & Fitch Co.		19		1.3	%
Genesco, Inc.		58		1.3	%
Aeropostale, Inc.		39		1.3	%
The Children’s Place Retail Stores, Inc.		25		1.1	%
Macy’s, Inc.		26		1.1	%
Shoe Show, Inc.		29		1.1	%
Hallmark Cards, Inc.		35		1.1	%
Boscov’s Department Store		9		1.0	%
Regis Corporation		68		1.0	%
Total Top 20 Tenants		778		33.0	%
Total Leases		2,920		100.00	%

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

⁽²⁾ Excludes tenants from properties classified as held for sale.

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

Page 16

Pennsylvania Real Estate Investment Trust

Lease Expirations as of December 31, 2012

(dollars in thousands except psf amounts)

Non-Anchors(1)(2)
			Gross Leasable Area					Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring		Expiring  GLA(3)		Percent of Total			Gross Rent in Expiring  Year		PREIT’s Share  of Gross Rent in Expiring  Year(4)		Percent of PREIT’s  Total			Average Expiring Gross  Rent psf
2012 and Prior	��	162		326,662		2.8	%	$	13,407	$	12,505		3.7	%	$	41.04
2013		441		1,477,400		12.8	%		43,924		40,406		11.8	%		29.73
2014		477		1,542,451		13.4	%		44,801		42,217		12.4	%		29.05
2015		326		1,408,526		12.2	%		43,986		40,142		11.8	%		31.23
2016		325		1,362,738		11.9	%		50,003		44,735		13.1	%		36.69
2017		297		1,067,470		9.3	%		40,809		35,525		10.4	%		38.23
2018		190		1,035,927		9.0	%		33,924		31,070		9.1	%		32.75
2019		146		682,465		5.9	%		24,472		22,939		6.7	%		35.86
2020		127		820,652		7.1	%		23,596		22,218		6.5	%		28.75
2021		124		538,237		4.7	%		19,033		17,038		5.0	%		35.36
2022		118		626,607		5.5	%		19,127		17,115		5.0	%		30.52
Thereafter		85		619,369		5.4	%		16,294		15,389		4.5	%		26.31
Total/Average		2,818		11,508,504		100.0	%	$	373,376	$	341,299		100.0	%	$	32.44
Anchors(1)(2)
			Gross Leasable Area					Annualized Gross Rent
Lease Expiration Year	Number  of Leases Expiring(5)		Expiring GLA		Percent of Total			Gross Rent in Expiring Year		PREIT’s Share  of Gross Rent in Expiring  Year(4)		Percent of PREIT’s  Total			Average Expiring Gross  Rent psf
2013		5		401,072		3.8	%	$	1,799	$	1,799		3.8	%		4.49
2014		13		1,217,378		11.5	%		4,875		4,315		9.1	%		4.00
2015		16		1,515,649		14.3	%		6,796		6,796		14.4	%		4.48
2016		19		1,843,381		17.5	%		7,053		7,053		14.9	%		3.83
2017		11		1,398,035		13.2	%		5,162		4,421		9.3	%		3.69
2018		11		1,130,813		10.7	%		4,922		4,922		10.4	%		4.35
2019		8		905,529		8.6	%		3,070		3,070		6.5	%		3.39
2020		3		301,030		2.9	%		801		801		1.7	%		2.66
2021		3		339,655		3.2	%		2,778		1,389		2.9	%		8.18
2022		4		521,173		4.9	%		2,735		2,735		5.8	%		5.25
Thereafter		9		993,653		9.4	%		10,034		10,034		21.2	%		10.10
Total/Average		102		10,567,368		100.0	%	$	50,025	$	47,335		100.0	%	$	4.73

⁽¹⁾  Only includes owned space.

⁽²⁾  Does not include leases related to properties classified as held for sale.

⁽³⁾  Does not include tenants occupying space under agreements with initial terms of less than one year. The GLA of these tenants is 416,501 sf.

⁽⁴⁾  Includes PREIT’s proportionate share of tenant rent from partnership properties based on PREIT’s ownership percentage in the respective partnerships.

⁽⁵⁾  Accounts for all contiguous anchor space as one lease.

Page 17

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2012

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 3/31/17 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 Dick’s Sporting Goods jcpenney Sears	11/5/14 1/31/22 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) 7/31/18 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 Philadelphia Media Network	2/28/32 6/30/29 11/30/24
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 10/5/26 (1) 7/28/17
Logan Valley Mall Altoona, PA		100	%	2003	1960/1997	jcpenney Macy’s Sears	1/31/17 1/31/15 10/31/16

Page 18

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2012 (continued)

Properties	Ownership Interest			Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
MALLS (continued)
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) 7/31/18
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 1/31/18 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	4/19/20 1/31/17 3/31/18 4/30/22 8/2/13
Nittany Mall State College, PA		100	%	2003	1968/1990	Bon-Ton jcpenney Macy’s Sears	1/31/18 7/31/15 (1) 8/28/15
North Hanover Mall Hanover, PA		100	%	2003	1967/1999	Dick’s Sporting Goods jcpenney Sears	1/31/28 1/31/16 11/30/14
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)
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 1/31/19
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 2/25/18 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)

Page 19

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2012 (continued)

Properties	Ownership Interest			Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
MALLS (continued)
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 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 jcpenney Macy’s Nordstrom Rack Sears	(1) 1/31/28 9/30/32 1/31/22 5/31/22 (1)
Wiregrass Commons Mall Dothan, AL		100	%	2003	1986/2008	Belk Burlington Coat Factory Dillard’s 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 4/30/17 1/31/17 8/1/16
POWER CENTERS
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)
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)
HELD FOR SALE PROPERTIES
Christiana Center Newark, DE		100	%	1998	1998	Costco Dick’s Sporting Goods	9/30/18 11/30/13
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)
Paxton Towne Centre Harrisburg, PA		100	%	1999	2001	Costco Kohl’s Target Weis Markets	(1) 1/30/21 (1) 11/30/20
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

⁽¹⁾  Space is not owned by PREIT.

⁽²⁾ Property is subject to a ground lease.

⁽³⁾ Property is managed by a third party.

Page 20

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method⁽¹⁾

(in thousands, except per share amounts)

	December 31, 2012									December 31, 2011
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,395,681		$	216,939		$	3,612,620		$	3,470,167		$	211,790		$	3,681,957
Construction in progress		68,619			811			69,430			91,538			864			92,402
Land held for development		13,240			—			13,240			15,292			—			15,292
Total investments in real estate		3,477,540			217,750			3,695,290			3,576,997			212,654			3,789,651
Accumulated depreciation		(907,928	)		(80,112	)		(988,040	)		(844,010	)		(73,594	)		(917,604	)
Net investments in real estate		2,569,612			137,638			2,707,250			2,732,987			139,060			2,872,047
Investments in partnerships, at equity		14,855			(14,855	)		—			16,009			(16,009	)		—
Other assets:
Cash and cash equivalents		33,990			4,883			38,873			21,798			5,683			27,481
Rent and other receivables(2)		38,473			1,824			40,297	��		39,832			2,065			41,897
Intangible assets, net		8,673			108			8,781			9,921			178			10,099
Assets held for sale		114,622			—			114,622			—			—			—
Deferred costs and other assets, net		97,399			15,585			112,984			89,707			15,704			105,411
Total other assets		308,012			7,545			315,557			177,267			7,621			184,888
Total assets	$	2,877,624		$	145,183		$	3,022,807		$	2,910,254		$	146,681		$	3,056,935
LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $282 as of December 31, 2011)	$	1,718,052		$	201,717		$	1,919,769		$	1,691,381		$	204,546		$	1,895,927
Exchangeable Notes (net of discount of $849 as of December 31, 2011)		—			—			—			136,051			—			136,051
Term Loans		182,000			—			182,000			240,000			—			240,000
Revolving Facility		—			—			—			95,000			—			95,000
Tenants’ deposits and deferred rent		14,862			4,027			18,889			13,278			3,492			16,770
Liabilities related to assets held for sale		102,417			—			102,417			—			—			—
Distributions in excess of partnership investments		64,874			(64,874	)		—			64,938			(64,938	)		—
Fair value of derivative instruments		9,742			—			9,742			21,112			—			21,112
Other liabilities		72,448			4,313			76,761			60,456			3,581			64,037
Total liabilities		2,164,395			145,183			2,309,578			2,322,216			146,681			2,468,897
Equity:
Total equity		713,229			—			713,229			588,038			—			588,038
Total liabilities and equity	$	2,877,624		$	145,183		$	3,022,807		$	2,910,254		$	146,681		$	3,056,935

⁽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 $27.5 million ($25.2 million consolidated, $2.3 million unconsolidated) as of December 31, 2012 and $27.9 million ($25.5 million consolidated, $2.4 million unconsolidated) as of December 31, 2011.

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Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)

	Quarter Ended December 31, 2012									Year Ended December 31, 2012
	Consolidated		Unconsolidated			Discontinued Operations		Total		Consolidated		Unconsolidated		Discontinued Operations		Total
Redevelopment projects with incremental GLA and/or anchor replacement(1)	$	4,061	$	(329	)	$	38	$	3,770	$	35,330	$	158	$	18	$	35,506
New development projects		3,317		1			—		3,318		4,519		14		—		4,533
Tenant allowances		11,490		686			201		12,377		27,528		1,084		756		29,368
Recurring capital expenditures:
CAM expenditures		5,159		4			—		5,163		10,799		287		59		11,145
Non-CAM expenditures		1,205		—			—		1,205		3,124		11		64		3,199
Total recurring capital expenditures		6,364		4			—		6,368		13,923		298		123		14,344
Total	$	25,232	$	362		$	239	$	25,833	$	81,300	$	1,554	$	897	$	83,751

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

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Pennsylvania Real Estate Investment Trust

Debt Analysis as of December 31, 2012

(in thousands)

Outstanding Debt
	Fixed Rate(1)			% of Total Indebtedness			Variable Rate		% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable(2)	$	1,817,806			82.6	%	$	—		0.0	%	$	1,817,806			82.6	%
Unconsolidated mortgage loans payable		201,717			9.1	%		—		0.0	%		201,717			9.1	%
2010 Credit Facility(3)		182,000			8.3	%		—		0.0	%		182,000			8.3	%
TOTAL OUTSTANDING DEBT	$	2,201,523			100.0	%	$	—		0.0	%	$	2,201,523			100.0	%
AVERAGE STATED INTEREST RATE		5.40	%					N/A					5.40	%

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

⁽²⁾ Includes mortgage loan balances from properties classified as held for sale.

⁽³⁾  As of December 31, 2012, for presentation purposes, we have designated interest rate swap agreements to effectively fix $182.0 million of the underlying LIBOR associated with the 2010 Credit Facility until March 10, 2013 at a current weighted average rate of 2.98%, excluding the spread on the related debt.

Average Debt Balance
					2010 Credit Facility
		Mortgage  Debt(1)			Revolving Facility			Term Loans			TOTAL
Beginning Balance	9/30/2012	$	2,024,915		$	15,000		$	240,000		$	2,279,915
Mortgage loan amortization			(5,392	)		—			—			(5,392	)
Credit Facility, net			—			(15,000	)		(58,000	)		(73,000	)
Ending Balance	12/31/2012	$	2,019,523		$	—		$	182,000		$	2,201,523
Weighted Average Balance		$	2,023,123		$	4,022		$	188,935		$	2,216,079

⁽¹⁾ Includes principal amortization of mortgage loans from properties classified as held for sale.

Debt Maturities(1)
					2010 Credit Facility
Year	Scheduled Amortization(2)		Mortgage Balance at Maturity(2)		Revolving Facility		Term Loans		Total Debt
2013	$	20,188	$	447,723	$	—	$	—	$	467,911
2014		20,261		99,203		—		182,000		301,464
2015		23,494		306,020		—		—		329,514
2016		13,758		243,745		—		—		257,503
2017		12,914		153,283		—		—		166,197
2018		13,382		4,145		—		—		17,527
Thereafter		44,340		617,067		—		—		661,407
	$	148,337	$	1,871,186	$	—	$	182,000	$	2,201,523

⁽¹⁾  The weighted average period to mortgage maturity is 4.99 years, excluding extension options. Includes 100% of mortgage debt from consolidated properties and our share of mortgage debt from unconsolidated properties, based on our ownership percentage.

⁽²⁾ Includes mortgage loan balances from properties classified as held for sale.

Weighted Average Mortgage Interest Rates(1)
Year	Balance		Interest Rate
2013	$	448,996		5.28	%
2014		100,978		7.28	%
2015		327,462		5.69	%
2016		259,671		5.38	%
2017		153,728		5.51	%
Thereafter		728,688		4.92	%
Total	$	2,019,523		5.35	%

⁽¹⁾ Includes mortgage loan balances from properties classified as held for sale.

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Pennsylvania Real Estate Investment Trust

Debt Schedule as of December 31, 2012

(in thousands)

	Debt (1)		Interest Rate			Annual Debt Service		Balance at Maturity		Initial Maturity Date	Fully Extended Maturity Date
Mortgage Loans
Dartmouth Mall	$	58,258		4.95	%	$	4,484	$	57,594	June 2013	June 2013
Moorestown Mall		53,473		4.95	%		4,115		52,864	June 2013	June 2013
Paxton Towne Centre(2)(3)(4)		50,000		4.10	%		2,052		50,000	July 2013	July 2013
Jacksonville Mall(2)		56,265		5.83	%		3,277		56,265	Sept 2013	Sept 2015
Logan Valley Mall(2)		63,000		5.79	%		3,649		63,000	Sept 2013	Sept 2015
Wyoming Valley Mall(2)		65,000		5.85	%		3,803		65,000	Sept 2013	Sept 2015
Francis Scott Key Mall(2)(5)		55,000		5.25	%		2,885		55,000	Dec 2013	Dec 2013
Viewmont Mall(2)(6)		48,000		5.25	%		2,518		48,000	Dec 2013	Dec 2013
Exton Square Mall		67,446		7.50	%		5,873		66,733	Jan 2014	Jan 2014
Lycoming Mall(7)		33,532		6.84	%		3,001		32,470	Jul 2014	Jul 2014
Springfield East(2)		2,180		5.39	%		92		2,061	Mar 2015	Mar 2020
Springfield Park(2)		2,560		5.39	%		108		2,419	Mar 2015	Mar 2020
Magnolia Mall		58,335		5.33	%		4,413		54,965	July 2015	July 2015
Patrick Henry Mall		89,423		6.34	%		7,743		83,210	Oct 2015	Oct 2015
Springfield Mall(2)		32,455		4.77	%		2,118		30,740	Nov 2015	Nov 2015
Willow Grove Park		142,509		5.65	%		11,083		132,624	Dec 2015	Dec 2015
Valley Mall		83,990		5.49	%		5,014		78,996	Mar 2016	Mar 2016
Woodland Mall		148,810		5.58	%		10,760		140,484	Apr 2016	Apr 2016
801 Market Street(2)		26,871		3.90	%		1,047		24,265	Jul 2016	Jul 2018
The Mall at Prince Georges		150,000		5.51	%		8,269		150,000	June 2017	June 2017
Pavilion East Associates(2)		3,728		5.71	%		253		3,283	Aug 2017	Aug 2017
Whitehall Mall		5,504		7.00	%		574		4,145	Nov 2018	Nov 2018
New River Valley Mall(2)		28,050		4.95	%		1,389		28,050	Jan 2019	Jan 2019
Valley View Mall		31,047		5.95	%		2,290		27,161	July 2020	July 2020
Lehigh Valley Mall		67,784		5.88	%		4,972		58,519	July 2020	July 2020
Red Rose Commons		14,662		5.14	%		978		12,379	July 2021	July 2021
The Court at Oxford Valley		29,850		5.56	%		1,668		25,782	July 2021	July 2021
Capital City Mall		65,114		5.30	%		4,379		54,715	Mar 2022	Mar 2022
Christiana Center(4)		49,754		4.64	%		3,090		40,710	Aug 2022	Aug 2022
Cumberland Mall		51,629		4.40	%		3,433		38,157	Aug 2022	Aug 2022
Cherry Hill Mall		300,000		3.90	%		11,700		252,568	Sept 2022	Sept 2022
Metroplex Shopping Center		42,994		5.00	%		2,681		33,978	Oct 2023	Oct 2023
Beaver Valley Mall(8)		42,300		9.36	%		3,972		45,049	Apr 2032	Apr 2032
Total Mortgage Loans		2,019,523		5.35	%		127,683		1,871,186
CONSOLIDATED MORTGAGE LOANS	$	1,817,806		5.34	%	$	114,240	$	1,697,880
UNCONSOLIDATED MORTGAGE LOANS		201,717		5.43	%		13,444		173,306
2010 CREDIT FACILITY - FIXED RATE(9)(10)(11)		182,000		5.98	%		10,875		182,000	Mar 2014	Mar 2015
Total	$	2,201,523		5.40	%	$	138,558	$	2,053,186
AMORTIZATION OF DEFERRED FINANCING FEES		—		0.38	%		—		—
EFFECTIVE INTEREST RATE	$	2,201,523		5.78	%	$	138,558	$	2,053,186

⁽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 Company made a $4.0 million paydown on this mortgage loan in May 2012.

⁽⁴⁾  The mortgage loan for this property is classified in liabilities related to assets held for sale on the balance sheet.

⁽⁵⁾  In February 2013, the amount of this mortgage loan was increased by $7.6 million and the due date was extended to March 2018.

⁽⁶⁾  In February 2013, the due date of this mortgage loan was extended to March 2018.

⁽⁷⁾  In February 2013, the amount of this mortgage loan was increased by $2.1 million and the due date was extended to March 2018.

⁽⁸⁾  This mortgage loan has passed its Anticipated Repayment Date. The final maturity date is April 2032.

⁽⁹⁾  Secured by first mortgage liens on 17 properties. See page 29 for property detail.

⁽¹⁰⁾  The 2010 Credit Facility consists of the 2010 Term Loan, with a balance of $182,000 and the Revolving Facility, with a balance of $0 as of December 31, 2012. The total available to borrow against the Revolving Facility is $250,000.

⁽¹¹⁾  As of December 31, 2012, for presentation purposes, we have designated interest rate swap agreements to effectively fix $182,000 of the underlying LIBOR associated with the 2010 Credit Facility until March 10, 2013 at a current weighted average rate of 2.98%, excluding the spread on the related debt.

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Pennsylvania Real Estate Investment Trust

Selected Debt Ratios⁽¹⁾

	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011
Consolidated Liabilities to Gross Asset Value		62.44	%		64.09	%		63.21	%		66.18	%		66.87	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 65%
EBITDA to Interest Expense		2.03			1.99			1.99			1.94			1.91
EBITDA may not be less than 1.65 to 1.00
Adjusted EBITDA to Fixed Charges		1.62			1.61			1.63			1.62			1.60
Adjusted EBITDA may not be less than 1.40 to 1.00
Corporate Debt Yield		11.93	%		11.40	%		11.64	%		11.06	%		11.00	%
The ratio of EBITDA to total indebtedness may not be less than 9.75%
Facility Debt Yield		34.41	%		29.15	%		16.35	%		22.38	%		15.97	%
The ratio of NOI for Collateral Properties to Aggregate Outstanding Principal Amount(2)
Collateral Properties(3)

Chambersburg Mall	North Hanover Mall	South Mall
Gadsden Mall	Orlando Fashion Square	Uniontown Mall
The Gallery at Market East I	Palmer Park Mall	Voorhees Town Center
The Gallery at Market East II	Phillipsburg Mall	Washington Crown Center
The Commons at Magnolia	Plymouth Meeting Mall	Westgate Anchor Pad
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 Facility 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.

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

⁽³⁾  In January and February 2013, the Company repaid $84.5 million of then-outstanding borrowings under the 2010 Term Loan. In connection with this repayment, the liens on Nittany Mall, Orlando Fashion Square and Phillipsburg Mall were released.

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Pennsylvania Real Estate Investment Trust

Definitions

Funds From Operations (FFO)

The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations (“FFO”), which is a non-GAAP measure commonly used by REITs, as net income excluding gains and losses on sales of operating properties (computed in accordance with GAAP), plus real estate depreciation and amortization; and after adjustments for unconsolidated partnerships and joint ventures to reflect funds from operations on the same basis. We compute FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than we do. In 2011, NAREIT reiterated its established guidance that excluding impairment write downs of depreciable real estate is consistent with the NAREIT definition.

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

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

We also present Funds From Operations, as adjusted, and Funds From Operations per diluted share and OP Unit, as adjusted, which are non-GAAP measures, for the three and twelvemonths ended December 31, 2012 and 2011 to show the effect of the provision for executive separation expense, loss on hedge ineffectiveness and accelerated amortization of deferred financing costs, which had a significant effect on our results of operations, but is not, in our opinion, indicative of our operating performance.

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

Net Operating Income (NOI)

NOI (a non-GAAP measure) is derived from real estate revenue (determined in accordance with generally accepted accounting principles, or GAAP, including lease termination revenue) minus operating expenses (determined in accordance with GAAP), plus our share of revenue and operating expenses of our partnership investments, and includes real estate revenue and operating expenses from properties included in discontinued operations, if any. It does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity. It is not indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that NOI is helpful to management and investors as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. We believe that net income is the most directly comparable GAAP measurement to NOI.

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

Funds Available for Distribution (FAD)

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

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

Page 26