PREIT Completes Sale of Phillipsburg Mall

  PREIT Completes Sale of Phillipsburg Mall

Business Wire

PHILADELPHIA -- January 10, 2013

Pennsylvania Real Estate Investment Trust (PREIT/NYSE: PEI) has completed the
sale of Phillipsburg Mall in Phillipsburg, NJ for $11.5 million, representing
a capitalization rate of approximately 9.8%. The sale of Phillipsburg Mall
marks a key step in PREIT’s previously announced strategic plan to improve the
quality of its portfolio through the sale of certain non-core assets.

Phillipsburg Mall is a 574,000 square foot mall located in the Greater Lehigh
Valley area and is anchored by Kohl’s, Sears, Bon Ton and jcpenney. Sales at
the property were $235 per square foot and non-anchor occupancy was 66.1% as
of September 30, 2012, which compare to PREIT’s portfolio averages of $379 per
square foot and 89.1%.

The property was part of the collateral pool securing the Company’s 2010
Credit Facility. As part of this transaction, the Company paid approximately
$16 million to release the lien on this property and will recognize an
impairment charge of $3.8 million in the quarter ending December 31, 2012.

“Effectuating our disposition strategy is critical to achieving our overall
objective to redefine PREIT, elevate our portfolio quality and improve our
operating metrics. The sale of Phillipsburg Mall is a critical achievement and
we are pleased with the terms of the transaction as we feel there are more
strategic uses for our capital at this time,” said Joseph F. Coradino, CEO of
PREIT.

About Pennsylvania Real Estate Investment Trust

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. Currently, the Company's portfolio of 47 properties comprises
37 shopping malls, seven community and power centers, and three development
properties. The Company’s 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 approximately 31.9 million total square feet of space.
PREIT, headquartered in Philadelphia, Pennsylvania, is publicly traded on the
NYSE under the symbol PEI. The Company's website can be found at
www.preit.com.

Forward Looking Statements

This press release 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 our current views about future events, achievements or results 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. In particular, our
business might be materially and adversely affected by uncertainties affecting
real estate businesses generally as well as the following, among other
factors: our substantial debt and our high leverage ratio; constraining
leverage, interest and tangible net worth covenants under our 2010 Credit
Facility; potential losses on impairment of certain long-lived assets, such as
real estate, or of 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; our ability to
refinance our existing indebtedness when it matures, on favorable terms or at
all, due in part to the effects on us of dislocations and liquidity
disruptions in the capital and credit markets; our 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; our short- and long-term liquidity position; 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 and on our cash flows, and the value and
potential impairment of our properties; general economic, financial and
political conditions, including credit market conditions, changes in interest
rates or unemployment; changes in the retail industry, including consolidation
and store closings, particularly among anchor tenants; our ability to maintain
and increase property occupancy, sales and rental rates, in light of the
relatively high number of leases that have expired or are expiring in the next
two years; increases in operating costs that cannot be passed on to tenants;
risks relating to development and redevelopment activities; the effects of
online shopping and other uses of technology on our retail tenants;
concentration of our properties in the Mid-Atlantic region; changes in local
market conditions, such as the supply of or demand for retail space, or other
competitive factors; potential dilution from any capital raising transactions;
possible environmental liabilities; our ability to obtain insurance at a
reasonable cost; and existence of complex regulations, including those
relating to our status as a REIT, and the adverse consequences if we were to
fail to qualify as a REIT. Additional factors that might cause future events,
achievements or results to differ materially from those expressed or implied
by our forward-looking statements include those discussed in the section of
our Annual Report on Form 10-K in the section entitled “Item 1A. Risk Factors”
and in our Quarterly Reports on Form 10-Q. We do not intend to update or
revise any forward-looking statements to reflect new information, future
events or otherwise.

Contact:

Pennsylvania Real Estate Investment Trust
Robert McCadden, 215-875-0735
EVP & CFO
or
Heather Crowell, 215-875-0735
VP, Corporate Communications and Investor Relations