PREIT Prices Preferred Share Offering At $25 per Share

Pennsylvania Real Estate Investment Trust PEI today announced that it has priced the underwritten public offering of 3,450,000 of its 7.375% Series B Cumulative Redeemable Perpetual Preferred Shares (the “Series B Preferred Shares”) at $25.00 per share, plus accrued dividends, if any. The offering is expected to close on October 11, 2012, subject to customary closing conditions. Dividends on the Series B Preferred Shares will be paid quarterly in arrears on the 15^th day of each March, June, September and December commencing December 17, 2012 (because December 15, 2012 is not a business day) at a rate of 7.375% annually of the stated liquidation value of $25.00 per share, which is equivalent to $1.84375 per share on an annualized basis. The estimated net proceeds from the offering are expected to be approximately $83.2 million, after deducting the underwriting discount and our estimated expenses. The Company intends to use the net proceeds from this offering to repay amounts outstanding under the Company's 2010 Credit Facility and for other general corporate purposes. The Company intends to file an application to list the Series B Preferred Shares on the New York Stock Exchange. If the application is approved, trading of the Series B Preferred Shares on the New York Stock Exchange is expected to begin within 30 days after the initial issuance of the Series B Preferred Shares. Wells Fargo Securities, LLC, Citigroup and Merrill Lynch, Pierce, Fenner & Smith Incorporated are acting as joint book-running managers for the offering. J.P. Morgan Securities LLC and Stifel, Nicolaus & Company, Incorporated are acting as joint lead managers for the offering, and Deutsche Bank Securities Inc., Janney Montgomery Scott LLC, Mitsubishi UFJ Securities (USA), Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. are acting as co-managers for the offering.