Pennsylvania Real Estate Investment Trust Completes $54 Million Financing of Paxton Towne Centre

Pennsylvania Real Estate Investment Trust (NYSE: PEI) announced today that it has completed a $54 million financing of Paxton Towne Centre in Harrisburg, Pennsylvania. The mortgage loan, provided by U.S. Bank National Association as Lead Arranger and Administrative Agent and Aareal Capital Corp. as Syndication Agent, has a term of three years with two one-year extension options. The variable interest rate, 200 basis points over one-month LIBOR, was swapped to a fixed rate of 5.837 percent for the initial term of the loan.

The proceeds from this financing were used to repay a portion of the amount outstanding under the Company's revolving Credit Facility and for general corporate purposes.

Paxton Towne Centre, developed in 2001 by PREIT, is a 703,000 square foot shopping center just three miles from the interchange of I-81, I-83 and Route 322 in Harrisburg, Pennsylvania. Retailers at the property include Target, Kohl’s, Bed Bath and Beyond, and Red Robin. As of June 30, 2008, the center was 100 percent occupied.

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 and power centers. Currently, the Company's retail portfolio is approximately 34 million square feet and consists of 55 properties, including 38 shopping malls, 13 strip and power centers, and four properties under development. The Company's properties are located in 13 states in the eastern half of the United States, primarily in the Mid-Atlantic region. PREIT is headquartered in Philadelphia, Pennsylvania. The Company's website can be found at www.preit.com. PREIT is publicly traded on the NYSE under the symbol PEI.

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 PREIT’s current views about future events and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. More specifically, PREIT’s business might be affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: general economic, financial and political conditions, including credit market conditions, changes in interest rates or the possibility of war or terrorist attacks; changes in local market conditions or other competitive or retail industry factors in the regions where our properties are concentrated; PREIT’s ability to maintain and increase property occupancy and rental rates, and risks relating to development or redevelopment activities, including construction, obtaining entitlements and managing multiple projects simultaneously. Investors are also directed to consider the risks and uncertainties discussed in documents PREIT has filed with the Securities and Exchange Commission and, in particular, PREIT's Annual Report on Form 10-K for the year ended December 31, 2007. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

** Additional information about PREIT is available on www.preit.com **