Pennsylvania Real Estate Investment Trust Completes $173 Million in Financings

Pennsylvania Real Estate Investment Trust (NYSE: PEI) announced today that it has completed three non-recourse mortgage loans with total proceeds of $173 million that are secured separately by Exton Square, Francis Scott Key and Viewmont Malls. Year to date, the Company has completed 14 financings for an aggregate of more than $820 million.

Ron Rubin, Chairman and Chief Executive Officer of the Company said “We are pleased to have completed these financings and are excited about the progress we are making at our transformed Cherry Hill Mall, Plymouth Meeting Mall, and Voorhees Town Center properties. In 2009, visitors to these malls are sure to enjoy the shopping, dining and entertainment experiences we are creating at these vibrant New Jersey and Pennsylvania properties.”

The Company closed a $70 million non-recourse mortgage loan secured by Exton Square Mall in Exton, Pennsylvania. This mortgage loan, provided by the lenders for the previous mortgage loan, carries a fixed interest rate of 7.50% for the term of the five year loan. Exton Square Mall, acquired in 2003, is a 1.1 million square foot enclosed mall anchored by Boscov’s, JCPenney, Macy’s and Sears. As of September 30, 2008, non-anchor occupancy was 83.6% and twelve-month same-store sales were $359 per square foot.

The Company also closed a $55 million non-recourse mortgage loan secured by Francis Scott Key Mall in Frederick, Maryland. The five-year, interest-only loan, provided by a commercial bank, carries a variable interest rate of LIBOR plus 2.35% that was swapped to a fixed rate of 5.245% for its full term. Francis Scott Key Mall, acquired in 2003, is a 711,000 square foot enclosed mall anchored by JCPenney, Macy’s and Sears. As of September 30, 2008, non-anchor occupancy was 92.3% and twelve-month same-store sales were $355 per square foot.

The Company also closed a $48 million non-recourse mortgage loan secured by Viewmont Mall in Scranton, Pennsylvania. The five-year, interest only loan, provided by a commercial bank, carries a variable interest rate of LIBOR plus 2.35% that was swapped to a fixed rate of 5.245% for its full term. Viewmont Mall, acquired in 2003, is a 750,000 square foot enclosed mall anchored by JCPenney, Macy’s and Sears. As of September 30, 2008, non-anchor occupancy was 92.5% and twelve-month same-store sales were $375 per square foot.

The proceeds from these three financings were used to repay the previous $93 million Exton Square Mall mortgage, repay a portion of the amount outstanding under the Company’s Credit Facility and for general corporate purposes.

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 56 properties, including 38 shopping malls, 14 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 **