Pennsylvania Real Estate Investment Trust Announces the Acquisition of the Remaining 27% Ownership Interest of Cherry Hill Mall

Business Wire, June 3, 2004

Business Editors/Real Estate Writers

PHILADELPHIA--(BUSINESS WIRE)--June 3, 2004

Pennsylvania Real Estate Investment Trust ("PREIT") (NYSE: PEI) announced today that it has completed the acquisition of the remaining 27% ownership interest in, and now owns 100% of, Cherry Hill Mall, Cherry Hill, New Jersey. PREIT purchased the remaining equity in New Castle Associates, which owns Cherry Hill Mall, for approximately 609,000 Operating Partnership units at $29.285 per unit.

In April 2003, as part of the six Philadelphia shopping malls that were acquired from The Rouse Company, PREIT acquired 49% of the aggregate partnership interests in New Castle Associates in exchange for approximately 585,000 PREIT Operating Partnership units issued at $29.285 per unit. PREIT then increased its ownership to approximately 73% by acquiring an additional interest directly from New Castle Associates in exchange for a cash investment of approximately $31 million. Substantially all of the money was applied by New Castle Associates toward the cash portion of the purchase price of Cherry Hill Mall and costs of the transaction. PREIT also retained a right to purchase the remaining interest in New Castle Associates. The right became effective on April 30, 2004.

Cherry Hill Mall is 1,266,000 square feet. As of March 31, 2004, the in-line sales volume was $418 per square foot with in-line occupancy of 93.4%.

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 (approximately 33.7 million square feet) located in the eastern United States. PREIT's portfolio currently consists of 58 properties in 14 states. PREIT's portfolio includes 40 shopping malls, 14 strip and power centers and four industrial properties. PREIT is headquartered in Philadelphia, Pennsylvania. The Company's website can be found at www.preit.com.

This press release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, 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 transaction on terms favorable to PREIT, if at all, or if the transaction is consummated, may cause PREIT's actual results to differ significantly from those expressed by the forward-looking statements. 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. Specifically, there can be no assurance that the in-line sales volume or occupancy rate at Cherry Hill Mall will continue at the recent level. 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.