PREIT Makes Further Improvements to Its Balance Sheet

  PREIT Makes Further Improvements to Its Balance Sheet

Business Wire

PHILADELPHIA -- March 11, 2013

Pennsylvania Real Estate Investment Trust (NYSE: PEI) has completed the
refinancing of Dartmouth Mall in Dartmouth, MA and paid off the mortgage loan
balance on Moorestown Mall in Moorestown, NJ.

The amount of the new 10-year loan on Dartmouth Mall is $67.0 million, which
replaces a $58.0 million loan and results in proceeds of approximately $9.0
million. The interest rate on the new mortgage loan is 3.97%, representing a
decrease of 98 basis points from the previous rate. The Company also paid off
the $53.2 million mortgage loan balance on Moorestown Mall, which is now
unencumbered as redevelopment of the property continues. This loan was set to
mature in June 2013.

“Our recent capital markets activities highlight our ability to improve
PREIT’s balance sheet as we drive our cost of capital lower, unencumber assets
and extend our maturity dates,” said Joseph Coradino, Chief Executive Officer
of PREIT. “We are pleased to have completed transactions for all of our 2013
maturities that do not otherwise have extension options at favorable terms,
before the conclusion of the first quarter.”

Dartmouth Mall is a 671,000 square foot mall in Dartmouth, MA anchored by
Sears, jcpenney, and Macy’s with sales per square foot of $425 as of December
31, 2012. Moorestown Mall is a 1,000,000 square foot mall in Moorestown, NJ
anchored by Sears, Boscov’s, Lord & Taylor and Macy’s with sales per square
foot of $357 as of December 31, 2012. Moorestown Mall is currently in the
midst of a redevelopment that will bring an expanded and upgraded movie
theater, new restaurants and a redefined retail component. The restaurants
will include Marc Vetri’s Osteria, Firebirds Wood Fired Grill and up to three
additional full service establishments.

Year to date, the Company has completed $213.1 million of property-level
financings yielding approximately $18.7 million in proceeds at an average
interest rate of 3.93%, a 150 basis point reduction on those mortgages.

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 46 properties comprises
36 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 31.0 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 stated value of preferred shares 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; 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 and 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 and capital market conditions, changes
in interest rates or unemployment; changes in the retail industry, including
consolidation and store closings, particularly among anchor tenants; the
effects of online shopping and other uses of technology on our retail 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; 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.” 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