Pennsylvania Real Estate Investment Trust Closes $670 Million Secured Credit Facility Agreement

Pennsylvania Real Estate Investment Trust (NYSE: PEI) today announced that it has closed on a secured credit facility with $520 million of term loans and a $150 million revolving line of credit with its bank group, led by Wells Fargo Bank.

Ronald Rubin, Chairman and Chief Executive Officer, said, “We stated previously that the next step in our capital plan was to refinance our maturing credit facility and term loan, and today we are pleased to announce the completion of that step. We appreciate the continued support and confidence of our lenders. This facility provides us with the opportunity to pursue our goals and maximize the long-term value of the Company for our shareholders.”

The new credit facility has a term of three years with a one-year extension option, subject to certain conditions. Depending on the Company’s leverage, the facility bears interest at an annual rate between 4.00% and 4.90% over LIBOR, with no interest rate floor. The initial rate was 4.90% over LIBOR.

The proceeds from the credit facility were used to pay down the previous $500 million unsecured revolving credit facility and $170 million unsecured term loan that were scheduled to mature on March 20, 2010. The Company’s obligations are secured by mortgages on 22 of the Company’s properties, and a second lien on one property.

The credit facility contains covenants customarily found in such agreements, including: a maximum ratio of Total Liabilities to Gross Asset Value of 0.75:1 based on a capitalization rate of 8.0%; a minimum ratio of EBITDA to Interest Expense of 1.60:1; a minimum ratio of Adjusted EBITDA to Fixed Charges of 1.35:1; and a minimum Corporate Debt Yield of 9.50%, subject to certain exceptions.

The credit facility contains provisions regarding the required application of proceeds from Capital Events or Refinance Events toward repayment of amounts outstanding, subject to certain conditions. A Capital Event includes, among other things, raising additional capital through an asset sale, joint venture, additional secured or unsecured debt, or issuance of equity. Capital Events do not include Refinance Events or other specified events. After payment of interest and required distributions, the remaining proceeds of Capital Events will generally be allocated to pay down the line of credit and term loans depending on the Facility Debt Yield.

A Refinance Event is any event by which the Company raises additional capital from refinancing of secured debt encumbering an existing asset, not including collateral for the credit facility. The proceeds in excess of the amount required to retire an existing secured debt will be applied, after payment of interest, to pay down the line of credit, or if the line of credit balance is zero, for general corporate purposes.

The aggregate amount of the lender Commitments under the credit facility must be reduced by $33.0 million by March 11, 2011, by another $33.0 million by March 11, 2012 and by another $34.0 million by March 11, 2013, assuming the Company exercises its right to extend the term. All capitalized terms have the meanings given such terms in the credit agreement.

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 portfolio consists of 54 properties, including 38 shopping malls, 13 strip and power centers, and three properties under development. The operating retail properties have a total of approximately 34 million square feet. 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.

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 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: PREIT’s substantial debt and high leverage ratio; constraining leverage, interest and tangible net worth covenants under PREIT’s 2010 Credit Facility, as well as mandatory pay down and capital application provisions; PREIT’s ability to refinance existing indebtedness when it matures; PREIT’s ability to raise capital, including through the issuance of equity securities if market conditions are favorable, through joint ventures or other partnerships, through sales of properties, or through other actions; PREIT’s short- and long-term liquidity position; the effects on us of dislocations and liquidity disruptions in the capital and credit markets; the current economic downturn and its effect on employment, consumer confidence and consumer spending; tenant business and leasing decisions and the value and potential impairment of PREIT’s properties; and PREIT’s ability to maintain and increase property occupancy, sales and rental rates, including at recently redeveloped properties. Additionally, there can be no assurance that PREIT’s actual results will not differ significantly from the estimates set forth in press releases or other disclosures, or that PREIT’s returns on its developments, redevelopments or acquisitions will be consistent with the estimates outlined in press releases or other disclosures. 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, as amended, for the year ended December 31, 2008. 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 **