Long-Term Financing Facilitates Development Program

    PHILADELPHIA, Jan. 4 /PRNewswire/ -- Pennsylvania Real Estate Investment
Trust (NYSE: PEI) announced today that it has completed the refinancing of its
line of credit with a new $250 million combined revolving credit and
construction finance facility led by Wells Fargo Bank National Association.
The facility combines a $175 million revolving credit facility with a
$75 million two-year construction finance facility.  The revolving credit
facility replaces a $150 million line of credit, which had approximately
$108 million in outstanding borrowings.
    The new revolving credit facility has a term of three years, bears
interest at between 1.3% and 1.8% over LIBOR and is secured initially by a
portfolio of 10 of the Company's existing retail and industrial properties.
The facility contains covenants and agreements which affect, among other
things, the amount of permissible borrowings and other liabilities of the
Company.  The initial term of the revolving credit facility may be extended
for an additional year if agreeable to the lenders or, alternatively, may be
converted by the Company into a two-year amortizing term loan at the beginning
of the third year.  In addition, properties financed under the construction
facility may join the collateral pool for the revolving credit facility upon
their completion.  The construction facility represents a new financing
vehicle for the Company and is aimed at shopping center development projects
in the predevelopment stage.  Presently, the Company has four properties in
predevelopment with a projected aggregate cost of approximately $70 million
and gross leasable space of approximately 1.2 million square feet.  The
inclusion of the construction line in the single facility with the same
lenders and pre-agreed documentation is expected to enable the Company to
expedite substantially the availability of development financing and lead to
more rapid completion schedules.
    Commenting on the financing, Ron Rubin, Chief Executive Officer of PREIT,
said, "This new bank agreement provides the Company with additional financial
flexibility to complete various development and redevelopment projects as well
as pursue other strategic opportunities that may arise.  With all of our
development projects being tenant-driven, PREIT's long-term success and
profitability depends on being responsive to their needs.  This credit
facility, when combined with the Company's expected financial performance in
2001 and resulting free cash flow generation, is expected to produce
sufficient funds to allow PREIT to continue its recent track record of
successful development for major retail tenants."
    During the two-year term of the construction facility, up to $75 million
can be borrowed against new development projects.  Each borrowing under that
facility will be in the form of a separate construction loan that will mature
in 2 years from closing of the specific loan.  In the event that PREIT does
not use the entire facility for new development projects, up to $25 million
can be converted by the Company into additional availability under the
revolving credit facility.
    The new facility is led by Wells Fargo Bank National Association as
administrative agent, and includes U.S. Bank National Association,
Manufacturers &Traders Trust Company, Fleet National Bank, Summit Bank,
Wilmington Trust Company, FirstTrust Bank, Sovereign Bank and Commerce Bank,
N.A.  Each bank will participate on a pro rata basis in both the revolving
credit facility and the construction loan facility.
    Ed Glickman, the Company's Chief Financial Officer, commented, "We believe
this new facility reflects PREIT's strong operational and financial
performance over the last several years and the confidence and support of the
banking community.  The rate, terms and conditions offered by our bank
syndicate, led by Wells Fargo, presented an excellent opportunity to provide
continued financial support for the Company's core development business.  In
particular, the new facility provides PREIT with an end-to-end financing
solution by providing funding for our development transactions from their
initiation, through the construction phase and back to the revolver for
additional borrowing capacity as completed assets.  We look forward to a long
and successful relationship with Wells Fargo and a group of banks with
experience and sophistication in the real estate market."

    Three Year $75 Million Interest Rate Swap Transactions
    In anticipation of the new credit facility, in early December, the Company
entered into two three-year interest rate swap agreements covering a notional
$75 million.  Under the swap agreements the Company agreed to pay a blended
fixed rate of approximately 6% against the receipt of one-month LIBOR.  The
swap counter parties were Fleet Bank and Wells Fargo.  These agreements
complement the Company's existing $20 million interest rate swap agreement,
which expires in June 2001, under which the company pays 6.12% fixed against
the receipt of one-month LIBOR.  Chatham Financial Corporation advised the
Company on the swap transaction.

    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 shopping
centers (approximately 9.8 million square feet) and apartment communities
(7,242 units) located primarily in the eastern United States.  The Company's
portfolio currently consists of 45 properties in 10 states.  In addition,
there are 6 retail properties under development, which will add approximately
3.0 million square feet to the portfolio.  Pennsylvania Real Estate Investment
Trust is headquartered in Philadelphia, Pennsylvania.
    The matters discussed in this report, as well as news releases issued from
time to time by PREIT include use of forward-looking terminology such as
"may," "will," "should," "expect," "anticipate," "estimate," "plan," or
"continue" or the negative thereof or other variations thereon, or comparable
terminology which constitute "forward-looking statements."  Such
forward-looking statements (including without limitation, information
concerning PREIT's continuing dividend levels, planned acquisition,
development and divestiture activities, short- and long-term liquidity
position, ability to raise capital through public and private offerings of
debt and/or equity securities, availability of adequate funds at reasonable
cost, revenues and operating expenses for some or all of the properties,
leasing activities, occupancy rates, changes in local market conditions or
other competitive factors) involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements
of PREIT's results to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements.  PREIT disclaims any obligation to update any such factors or to
publicly announce the result of any revisions to any of the forward-looking
statements contained herein to reflect future events or developments.
    To receive additional information on Pennsylvania Real Estate Investment
Trust via fax at no charge, please dial 1-800-PRO-INFO and enter the ticker
symbol PEI.

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