Pennsylvania Real Estate Investment Trust Announces Plans for $360 Million in Financings.

PHILADELPHIA -- Pennsylvania Real Estate Investment Trust ("PREIT") (NYSE: PEI) announced today that it has received commitments for a $200 million first mortgage loan from Prudential Mortgage Capital Company and Northwestern Mutual. The loan, which will be secured by Cherry Hill Mall in Cherry Hill, New Jersey, will have an interest rate of 5.42% (which includes the cost to lock in the rate until closing) and will mature in October 2012. Under the terms of the commitments, PREIT will have the ability to convert this mortgage loan to a senior unsecured loan under prescribed conditions, including the achievement of a specified credit rating. E[acute accent]PREIT expects to close this financing in October 2005, subject to the negotiation of definitive loan documents and the satisfaction of customary closing conditions. A portion of the loan proceeds will be used to repay the existing mortgage, which PREIT assumed in connection with the purchase of Cherry Hill Mall in 2003. The existing loan has an interest rate of 10.6% and will have a balance of approximately $70 million at the anticipated repayment date. E[acute accent]PREIT also announced that it has signed an application for a $160 million first mortgage loan from Prudential Mortgage Capital Company and another institutional lender. This loan, upon closing, will be secured by Willow Grove Park in Willow Grove, Pennsylvania. The loan will bear interest at an annual rate of 5.65% (which includes the cost to lock in the rate until closing) and will mature in December 2015. Similar to the Cherry Hill Mall financing, PREIT will have the option to convert this mortgage loan to a senior unsecured loan under prescribed conditions, including the achievement of a specified credit rating. E[acute accent]Subject to the completion of due diligence, the negotiation of definitive loan documents and the satisfaction of customary closing conditions, this financing is expected to close in December 2005. A portion of the loan proceeds will be used to repay the existing first mortgage loan on Willow Grove Park, which has an interest rate of 8.39% and will have a balance of approximately $108 million at the anticipated closing date. E[acute accent]Robert McCadden, Chief Financial Officer of PREIT, commented, "We are very pleased with the opportunity to lock in long-term fixed-rate financings on two of our largest properties. The completion of both of these transactions will generate approximately $182 million of net proceeds to repay borrowings under our Credit Facility and will provide us with additional liquidity to fund investment opportunities and for other corporate purposes. Also, upon closing, we will be able to capture the benefit of replacing above-market debt with borrowings at current interest rates while reducing our exposure to future rate increases. In addition to these transactions, we plan to continue to pursue other refinancing opportunities which will strengthen our balance sheet and improve PREIT's credit quality."

E[acute accent]About Pennsylvania Real Estate Investment Trust

E[acute accent]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 (approximately 33.6 million square feet) located in the eastern United States. PREIT's portfolio currently consists of 55 properties in 12 states. PREIT's portfolio includes 38 shopping malls, 13 strip and power centers and four industrial properties. PREIT is headquartered in Philadelphia, Pennsylvania. PREIT's website can be found at www.preit.com.

E[acute accent]This press release contains certain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. 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 prevent PREIT from consummating the proposed transactions on the terms described above. In particular, PREIT may not be able to consummate the proposed transactions on the terms described above, or at all, due to the failure to negotiate definitive agreements with the lenders or satisfy closing conditions applicable to the loans. 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 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 press release to reflect new information, future events or otherwise. 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, 2004.