Filed by: Pennsylvania Real Estate Investment Trust
Subject Company: Crown American Realty Trust
Pursuant to Rule 425 under the Securities Act of 1933
And Deemed Filed Pursuant to Rule 14a-12
Under the Securities Exchange Act of 1934
Registration Statement File No.: 333-107902
Investor Notice
In connection with the proposed merger with Crown American Realty Trust, PREIT
has filed with the Securities and Exchange Commission a registration statement
on Form S-4 containing a preliminary joint proxy statement/prospectus. ALL
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THIS DOCUMENT AS IT CONTAINS
IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of
these materials as well as other materials filed with the Securities and
Exchange Commission concerning PREIT and Crown at the Securities and Exchange
Commission's website at http://www.sec.gov. Investors and security holders also
may obtain for free these materials and other documents filed by PREIT by
directing a request to Pennsylvania Real Estate Investment Trust at The
Bellevue, 200 S. Broad Street, Philadelphia, PA 19102; Attn: Investor Relations.
In addition, investors and security holders may obtain for free these materials
and other documents filed by Crown by directing a request to Crown American
Realty at Pasquerilla Plaza, Johnstown, Pennsylvania 15901; Attn: Investor
Relations.
PREIT and its respective trustees and executive officers and other members of
their management and employees, may be deemed to be participants in the
solicitation of proxies from the shareholders of PREIT and Crown American Realty
Trust in connection with the merger. Information about the trustees and
executive officers of PREIT and their ownership of PREIT shares is set forth in
the proxy statement for PREIT's 2003 Annual Meeting of Shareholders, which was
filed with the Securities and Exchange Commission on April 30, 2003. Investors
may obtain additional information regarding the interests of such participants
by reading the preliminary joint proxy statement/prospectus contained PREIT's
registration statement on Form S-4 and by reading the definitive joint proxy
statement/prospectus when its becomes available.
[GRAPHICS OMMITED] [LOGO]
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Pennsylvania Real Estate Investment
Trust
Business Committed to Burlington County
September 19, 2003
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Pro Forma Retail Holdings [LOGO]
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{Map Omitted]
Wisconsin Massachusetts
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Properties Sq. Ft. Properties Sq. Ft.
---------- ------- ---------- -------
Valley View Mall 585,784 Dartmouth Mall 627,038
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Pennsylvania New Jersey
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Properties Sq. Ft. Properties Sq. Ft.
---------- ------- ---------- -------
Beaver Valley Mall 1,163,886 Cherry Hill 1,282,000
Capital City Mall 609,825 Echelon Mall 1,140,000
Chambersburg Mall 454,576 Moorestown 1,036,000
Creekview Shopping Center 425,002 Philllipsburg Mall 551,898
Crest Plaza Shopping Center 155,294 Rio Mall* 158,937
Exton Square 1,098,000 =====================================
Festival at Exton 142,610 Delaware
Laurel Mall* 558,802 -------------------------------------
Lehigh Valley Mall* 1,051,145 Properties Sq. Ft.
Logan Valley Mall 783,012 ---------- -------
Lycoming Mall 794,638 Christiana Power Center I 302,409
Metroplex Shopping Center* 778,190 =====================================
Nittany Mall 531,395 Maryland
North Hanover Mall 450,096 -------------------------------------
Northeast Tower Center 472,102 Properties Sq. Ft.
Palmer Park Mall 447,397 ---------- -------
Paxton Towne Center 719,034 Francis Scott Key Mall 706,346
Plymouth Meeting Mall 823,000 Prince George's Plaza 743,465
Red Rose Commons* 463,042 Valley Mall 898,790
Schuylkill Mall(2) 727,091 =====================================
Shenango Valley Mall(2) 513,483 Virginia
South Mall 403,916 -------------------------------------
Springfield Park I & II* 268,500 Properties Sq. Ft.
The Court at Oxford Valley* 704,486 ---------- -------
The Gallery at Market East 191,000 New River Valley Mall 428,602
Uniontown Mall(2) 696,432 Patrick Henry Mall 642,295
Viewmont Mall 769,238 =====================================
Washington Crown Center 669,179 North Carolina
West Manchester Mall(2) 704,148 -------------------------------------
Whitehall Mall* 533,721 Properties Sq. Ft.
Willow Grove Park* 1,203,629 ---------- -------
Wycoming Valley Mall 908,122 Jackonville Mall 414,248
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Tennessee South Carolina
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Properties Sq. Ft. Properties Sq. Ft.
---------- ------- ---------- -------
Bradley Square(2) 406,522 Magnolia Mall 562,185
====================================== The Commons at Magnolia 230,644
West Virginia =====================================
-------------------------------------- Georgia
Properties Sq. Ft. -------------------------------------
---------- ------- Properties Sq. Ft.
Crossroads Mall 448,208 ---------- -------
Martinsburg Mall 556,400 Mount Berry Square(2) 478,679
====================================== =====================================
Alabama
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Properties Sq. Ft.
---------- -------
Wiregrass Commons 632,930
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Florida
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Properties Sq. Ft.
---------- -------
South Blanding Village 106,657
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Combined Portfolio by Total Square Footage [LOGO]
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State SF
Pennsylvania 20,213,991
New Jersey 4,168,835
Wisconsin 585,784
Virginia 1,070,897 [Pie Chart Omitted]
West Virginia 1,004,608
South Carolina 792,829
Alabama 632,930
Massachusetts 627,038
Maryland 2,348,601
Other 1,708,515
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Stability: 105th Dividend [LOGO]
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PREIT's June 16, 2003 dividend payment marks its 42nd consecutive year of paying
dividends and represents its 105th consecutive distribution since the initial
dividend paid in 1962. PREIT has increased the dividend 22 times, while never
reducing or omitting a payment.
[Picture Omitted] [Graphic Omitted]
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Trust's Market Capitalization(1) [LOGO]
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[Chart Omitted]
1997 1998 1999 2000 2001 2002 2003E 2
Debt $211 $412 $489 $525 $506 $ 617 $1,690
Equity 342 281 214 288 409 480 1,260
Total $553 $693 $703 $813 $915 $1,097 $2,950
NOTES:
o As reported in the Trust's Supplemental Disclosures.
o Estimate assumes share price of $32.00
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Greater Philadelphia Market [LOGO]
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[Map Omitted]
Montgomery Mall North Wales PA Springfield Mall Springfield, PA
Willow Grove Park Willow Grove PA Quaker Bridge Mall Lawrenceville, NJ
Plymouth Meeting Mall Plymouth Meeting PA Oxford Valley Mall Langhorne, PA
The Plaza & Court at King of Prussia Neshaminy Mall Bensalem, PA
King of Prussia PA
Franklin Mills Philadelphia, PA
Exton, PA
Cheltenham Square Cheltenham Twp., PA
69th Street Center Upper Darby, PA
Roosevelt Mall Philadelphia, PA
Granite Run Mall Media, PA
Burlington Center Burlington, NJ
Moorestown Mall Moorestown, NJ
The Gallery at Market East Philadelphia, PA
Cherry Hill Mall Cherry Hill, NJ
Echelon Mall Voorhees, NJ
Deptford Mall Deptford, NJ
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PREIT's Post Acquisition
Philadelphia-Area Mall Portfolio [LOGO]
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[Graphics representing the following properties omitted:
Willow Grove Park, Cherry Hill Mall, Moorestown Mall,
Plymouth Meeting Mall, Exton Square, The Gallery at Market East,
Echelon Mall]
o 7 Properties
--7.4 million square feet
o 90.6% occupied
o $336 comp sales/sf
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PREIT's Value Creation Strategy [LOGO]
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o Capitalize on solid demographic profile of market dominant Rouse assets
o Replace under performing anchors with fashion oriented retailers
o Incorporate "Lifestyle" tenants
o Add themed and white tablecloth restaurants
o Reposition select assets
o Introduce value oriented retail and big box retail
o Research adaptive reuse options
o Office
o Healthcare
o Education
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South Jersey Submarket
Average Household Income Pattern [LOGO]
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[Map Omitted]
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Cherry Hill Mall
Cherry Hill, NJ [LOGO]
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Cherry Hill Mall
[Picture Omitted]
June 30 2003, 2Q Statistics:
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o 1.3 million square feet
o Purchased for $201.6 million
o 93.8% occupied
o Macy's, Strawbridge's, JCPenney
o $391 mall store comparable sales/sf
o $314 million in gross sales (estimated, rolling 12 months)
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Cherry Hill Mall Demographics &
Recent Tenant Additions [LOGO]
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[Picture Omitted]
|| 5 Mile Ring:
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o Population: 296,322
o Households: 111,331
o Median Age: 37.1 years
o Average Household Income: $67,477
|| Recent Tenant Additions
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|| 2000 - Bebe, Illuminations, White Barn Candle
|| 2001 - Ann Taylor, Aveda, Forever 21, H&M
|| 2002 - Chico's, Lindt Chocolates
|| 2003 - Bahama Breeze, Bertucci's, Build-a-Bear
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Moorestown Mall
Moorestown, NJ [LOGO]
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Moorestown Mall
[Picture Omitted]
June 30 2003, 2Q Statistics:
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o 1.1 million square feet
o Acquired for $74.9 million
o 96.0% occupied
o Boscov's, Lord & Taylor, Strawbridge's, Sears
o $331 mall store comparable sales/sf
o $178 million in gross sales (estimated, rolling 12 months)
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Moorestown Mall Demographics &
Redevelopment Program [LOGO]
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[Picture Omitted]
|| 5 Mile Ring:
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o Population: 205,091
o Households: 79,977
o Median Age: 40.2 years
o Average Household Income: $86,951
|| Introduce Additional Upscale Fashion Anchor:
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o Increase drawing power
o Remerchandise small shops
o Reposition asset to meet demographics
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Echelon Mall
Voorhees, NJ [LOGO]
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Echelon
[Picture Omitted]
June 30 2003, 2Q Statistics:
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o 1.1 million square feet
o Purchased for $18.3 million
o 52.3% occupied
o Boscov's, Strawbridge's
o Vacant Sears & JCP
o $241 mall store comparable sales/sf
o $101 million in gross sales (estimated, rolling 12 months)
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Echelon Mall Demographics &
Redevelopment Program [LOGO]
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[Picture Omitted]
|| Primary Trade Area:
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o Population: 270,029
o Households: 99,426
o Median Age: 37.2 years
o Average Household Income: $76,788
|| Redevelop Vacant Anchors for Mixed Use:
---------------------------------------
o Traditional retail
o Big Box retail
o Office
o Cosmetic renovation
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South Jersey Comparison [LOGO]
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SUMMARY DEMOGRAPHIC COMPARISONS
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5 MILE RING
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CH ECH KOP MT
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Population
2003 Estimate 296,149 245,395 164,267 205,944
Households
2003 Estimate 111,331 96,170 64,556 79,977
2003 Est. Households by Household Income 111,331 96,170 64,556 79,977
Households with $100+ in Income 21,034 23,055 18,985 23,181
2003 Est. Average Household Income $67,477 $78,196 $91,212 $86,951
2003 Est Median Household Income $50,950 $60,492 $65,457 $67,932
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$100K Income Draw by Mall [LOGO]
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Philadelphia - Aug 2001 - Jan 2002 (Scarborough)
Shop Area Malls Past 90 days $100,000 + Income
Geo Area:
SCB Philadelphia TSA - Std Demo: Persons 18+
Cherry Hill Mall 9.8%
Moorestown Mall 2.9%
Philadelphia CBD 3.8%
King of Prussia Court/Plaza 10.6%
[Chart Omitted]
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Forward-Looking Statements [LOGO]
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This presentation contains forward-looking statements. Forward-looking
statements relate to expectations, beliefs, projections, future plans and
strategies, anticipated events or trends and other matters that are not
historical facts. These forward-looking statements reflect PREIT's current
views about future events and are subject to risks, uncertainties,
assumptions and changes in circumstances that may cause future events,
achievements or results to differ materially from those expressed by the
forward-looking statements. In particular, PREIT may not be able to
consummate the merger with Crown on previously announced terms, on
otherwise favorable terms to PREIT, or at all. If this transaction is
consummated, PREIT's actual results may differ significantly from those
expressed in any forward-looking statement. Certain factors that could
cause PREIT not to consummate the transaction or could cause PREIT's actual
results to differ materially from expected results include, without
limitation, failure of the requisite number of PREIT and Crown shareholders
to approve the merger, the satisfaction of closing conditions applicable to
the transaction (some of which are beyond PREIT's control); and other
economic, business or competitive factors. In addition, PREIT's business is
subject to uncertainties regarding the revenues, operating expenses,
leasing activities, occupancy rates, and other competitive factors relating
to PREIT's portfolio and the properties proposed to be acquired and changes
in local market conditions as well as general economic, financial and
political conditions, including the possibility of outbreak or escalation
of war or terrorist attacks, any of which may cause future events,
achievements or results to differ materially from those expressed by the
forward-looking statements. PREIT does not intend to and disclaims any duty
or obligation to update or revise any forward-looking statements or
industry information set forth in this document to reflect new information,
future events or otherwise.
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