Financing Facilitates 1999 Development Program

    PHILADELPHIA, April 14 /PRNewswire/ -- Pennsylvania Real Estate Investment
Trust (NYSE: PEI) announced today that it has completed the financing of eight
multifamily communities with $108 million of permanent, fixed-rate, long-term
debt.
    With the financing, PREIT replaced short-term floating rate debt with
fixed rate, mortgage debt.  The newly placed loans carry a weighted average
fixed interest rate of 6.77%, equating to a spread of 158 basis points over
the yield on the ten year United States Treasury at the time that the rates
were locked.  The eight properties (see below) secure non-recourse loans which
amortize over 30 years and mature in May 2009.  Proceeds from the transactions
were used to pay off a short-term, floating rate loan of $17 million, which is
secured by the recently acquired Northeast Tower Center in Philadelphia, Pa.
The balance of the proceeds, approximately $88 million, will be used to pay
down the Company's line of credit.  After the paydown, approximately $60
million of the Company's $150 million line of credit will be in use.  GMAC
Commercial Mortgage originated the permanent mortgage debt.
    Commenting on the financing, Edward A. Glickman, the Company's Executive
Vice President and Chief Financial Officer said, "After exploring several
options to expand our line of credit, we concluded that placing long-term
financing on a portion of our multifamily portfolio achieved the lowest cost
of financing.  The spread of 158 basis points was particularly attractive
compared with alternative financing options.  The proceeds were used to pay
off a short-term loan from a recent acquisition and to reduce our line of
credit.  The result is new capacity on the line of credit with no change in
the overall leverage of the Company, enabling PREIT to fund its 1999
development projects and other high value-added opportunities."
    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 (8.0 million square feet) and apartment communities (7,243 units)
located primarily in the eastern United States.  The Company's portfolio
currently consists of 48 properties in 10 states.  In addition, there are
5 retail properties under development.  Pennsylvania Real Estate Investment
Trust is headquartered in Philadelphia, Pa.

                                Property List

        Property                 Location           Units     Loan Amount(A)

    Boca Palms Apartments       Boca Raton, FL        522        $22,600,000
    Cobblestone Apartments   Pompano Beach, FL        384         13,850,000
    Palms of Penbroke       Pembroke Pines, FL        348         16,600,000
    Marylander Apartments        Baltimore, MD        508         12,300,000
    Hidden Lakes Apartments         Dayton, OH        360         10,700,000
    Kenwood Gardens                 Toledo, OH        504          7,250,000
    Lakewood Hills Apartments   Harrisburg, PA        562         18,750,000
    2031 Locust Street        Philadelphia, PA         87          5,950,000
                                                    3,275       $108,000,000

(A)  Each loan is non-recourse and the loans are not cross-collateralized.

    With the exception of the historical information contained in the release,
the matters described herein contain forward-looking statements that are made
pursuant to the Safe Harbor provisions of the Private Securities Litigation
Reform Act of 1995.  Such statements involve various risks and may cause
actual results to differ materially.  These risks include, but are not limited
to, the ability of the Company to grow internally or by acquisition, and to
integrate acquired businesses, changing industry and competitive conditions,
and other risks outside the control of the Company referred to in the
Company's registration statement and periodic reports filed with the
Securities and Exchange Commission.

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