Fiscal Year Highlights
    -- 1997 fiscal year FFO rose 6% over 1996 FFO
    -- Net operating income of the apartment portfolio increased
       6.2% over fiscal 1996:
       -- rental income grew 2.4%
       -- vacancy rate improved from 7% to 5.9%
    -- Net operating income of the shopping center portfolio
       increased 1.4% over fiscal 1996:
       -- rental income grew 3%
    -- Entered into acquisition agreement with The Rubin Organization on
       July 31; committed to acquire 2.9 million s.f. of shopping centers;
       grew asset base by 30% to date; restructured as UPREIT
    -- Ronald Rubin appointed PREIT's new Chief Executive Officer
    -- Closed $150 million revolving credit facility

    FORT WASHINGTON, Pa., Nov. 12 /PRNewswire/ -- Pennsylvania Real Estate
Investment Trust (Amex: PEI) announced today the audited results of its
operations for the fourth quarter and full fiscal year ended August 31, 1997.
These results are prior to the Trust's acquisition of The Rubin Organization,
which was completed on September 30, 1997.

    Fiscal Year Results
    Funds from operations (FFO) for the full fiscal year ended August 31,
1997, totaled $19,660,000, or $2.27 per share, a 6% increase over the previous
year's FFO of $18,628,000, or $2.15 per share.  The growth in FFO was driven
by increases in net operating income for the apartment and shopping center
portfolios, attributable to higher rental income in both sectors and lower
vacancy rates in the apartment properties.  As calculated by NAREIT, funds
from operations is defined as net income excluding extraordinary and
unusual items, gain (or loss) on sale of property, plus depreciation and
amortization.
    Revenues for the twelve months ended August 31, 1997, totaled $40,485,000
compared with $39,156,000 for the twelve months ended August 31, 1996.  The
Trust's same store NOI from its apartment portfolio increased 6.2% for the
1997 fiscal year over the 1996 fiscal year.  Same store NOI for PREIT's
shopping center portfolio increased 1.4% in 1997 over 1996. "Same store" is
defined as all of the properties that were in PREIT's portfolio during both of
the periods compared.
    Net income for the 1997 fiscal year totaled $10,235,000, or $1.18 per
share, compared to $11,044,000, or $1.27 per share, for fiscal 1996. The 1997
net income results included gains on the sales of the Trust's interests in
three shopping centers in Lancaster, Waynesburg and Beaver Falls,
Pennsylvania, and a loss on the sale of Margate Center (FL) totaling
$1,069,000, or $0.12 per share.  The results also reflect an accounting
provision in the second quarter for losses on land held for sale in the
Trust's investment portfolio of $500,000, or $0.06 per share, and prepayment
fees paid in the first and second quarters in connection with the refinancing
of Lehigh Valley Mall (PA) and Regency Lakeside Apartments (NE), of which
$1,133,000, or $0.13, was the Trust's share.  The provision for losses and the
prepayment fees had no effect on the calculation of FFO.  Net income for
fiscal 1996 included gains on the sale of real estate totaling $865,000, or
$0.10 per share.

    Fourth Quarter Results
    FFO totaled $4,948,000, or $0.57 per share, for the three months ended
August 31, 1997, compared to $4,504,000, or $0.52 per share, for the three
months ended August 31, 1996.  Included in the fourth quarter 1997 FFO was
$0.02 per share, reflecting the cumulative effect of a change in the Trust's
accounting policies for certain joint venture properties.  The change was made
to more accurately reflect the Trust's share of income from these properties.
Total revenues for the quarter ended August 31, 1997, grew to $10,151,000,
compared with $9,846,000 for the quarter ended August 31, 1996.
    Net income for the fourth quarter of 1997 totaled $1,830,000, or $0.21 per
share, compared to $2,827,000, or $0.33 per share, for the same period a year
ago.  The results included a loss on the sale of the Trust's interest in
Margate Center of $392,000, or $0.05 per share, which was sold during the
fourth quarter for cash consideration of $1,378,000, and recognition of an
additional prepayment fee, of which the Trust's share was $400,000, or $0.05
per share, paid in connection with the second quarter refinancing of Regency
Lakeside Apartments.  The prepayment fee had no effect on the calculation of
FFO.

    Comments from Management
    Commenting on the Trust's performance, Sylvan Cohen, Chairman and Chief
Executive Officer of PREIT for the 1997 fiscal year and Jonathan Weller,
President and Chief Operating Officer of PREIT, said, "We are quite pleased
with PREIT's accomplishments this year, with both our portfolio sectors
contributing to FFO and NOI growth.  On the apartment side of the portfolio,
we experienced higher rental income and occupancy rates, the latter resulting
from new tenant retention programs that included improved resident services
and more
flexible leasing options.  At the same time, we held back operating expense
growth by implementing cost efficiencies in our Florida operations."
    Mr. Weller went on to say, "Revenue and NOI growth in our shopping center
portfolio was led by the very strong performance of Lehigh Valley Mall in
Pennsylvania, which is the largest single property in the portfolio and
accounts for nearly a third of our retail assets.  Aggressive lease
negotiation, along with the completion of Lehigh Valley's renovation in 1996,
drove higher rents and attracted higher quality tenants to the center.  While
other retail properties in the portfolio may not have seen the solid growth of
Lehigh Valley during the year, we believe this is in part due to the
positioning of some of those properties for future redevelopment, which
creates higher vacancy rates over the short term and better growth prospects
over the long term.
    "Looking forward, we should start recognizing the contribution of the new
properties acquired in PREIT's merger with The Rubin Organization ("TRO").  In
addition to the four existing properties, which we expect will be accretive in
the current quarter, we have made further progress with several of the
development projects.  We broke ground on Christiana Center, a 295,000 s.f.
shopping center in Newark, Delaware, and expect to break ground on Red Rose
Commons, a 493,000 s.f. center in Lancaster, Pennsylvania by the end of this
month.  We have secured anchor tenancy commitments for both centers and
anticipate that they will be up and running in the fourth quarter of 1998.
And we are on track to complete the acquisition of Hillview Shopping
Center (340,000 s.f. in Cherry Hill, New Jersey) in the first quarter of
1998," concluded Mr. Weller.
    Ronald Rubin, PREIT's new Chief Executive Officer, added, "With the merger
of the PREIT and TRO organizations last month, we have assembled a top-quality
team of seasoned professionals with complementary capabilities and expertise.
I am looking forward to applying PREIT's newly strengthened blend of real
estate acquisition, management, leasing and development acumen to the numerous
opportunities that exist in our target markets.  I am confident that we are in
an excellent position to take full advantage of PREIT's potential."

    Acquisition of The Rubin Organization Completed
    On September 30, 1997, the Trust completed the acquisition of The Rubin
Organization, a privately held leading full-service real estate company, as
well as interests in four existing shopping centers, the right to acquire
two shopping centers nearing completion, and four potentional shopping center
development projects, in exchange for a combination of cash, assumption of
debt and operating partnership units.

    Line of Credit Increased
    On September 30, 1997, the Trust successfully closed a $150 million
revolving credit facility with CoreStates Bank, a portion of which was used in
funding the TRO acquisition.

    Ronald Rubin Appointed Chief Executive Officer
    Concurrent with the closing of the TRO transaction, Ronald Rubin, founder
and Chief Executive Officer of TRO, was appointed Chief Executive Officer of
PREIT.  Sylvan Cohen, PREIT's Chairman and Chief Executive Officer since the
Trust's inception in 1960, will continue to serve as Chairman of PREIT's Board
of Trustees and Chairman of the Property Committee.

    Fiscal Year End & Dividend Cycle Changed
    Concurrent with the close of the acquisition, PREIT changed its fiscal
year end from August 31 to December 31.  As a result, the Trust's dividend
payment cycle also changed.  Dividends previously payable in February, May,
August and November will be paid in March, June, September and December.  The
Trust anticipates that its next earnings release will be on or about
February 16, 1998, and will cover the fourth-month "bridge" period ending
December 31, 1997.

    PREIT to Move to NYSE
    The Trust also announced that it has been authorized to list its shares on
the New York Stock Exchange, effective on or about November 14, 1997.  The
Trust's common stock will continue trading under its current ticker symbol,
"PEI."
     Mr. Rubin explained, "We believe PREIT's move to the New York Stock
Exchange is a smart move for a number of reasons.  In addition to increasing
visibility for the Trust, we anticipate that an NYSE listing will provide
greater liquidity for the Trust's shares.  Furthermore, the great majority of
our real estate investment trust peers are listed on the NYSE, which we
feel makes this particular exchange more suitable for PREIT."

    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 apartment
communities (7,236 units) and shopping centers (6.4 million square feet)
located primarily in the eastern United States.  PREIT's portfolio currently
consists of 46 properties in 10 states.  PREIT is headquartered in Fort
Washington, Pennsylvania, a suburb of Philadelphia.

    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 Trust 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 Trust's
registration statement and periodic reports filed with the Securities and
Exchange Commission.

                  PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
                           Selected Financial Data
                                  (Audited)
                             Three Months Ended             Year Ended
                                  August 31,                 August 31,
                            1997         1996        1997         1996
    Funds From Operations
    Net Income        $1,830,000   $2,827,000 $10,235,000  $11,044,000
    (Gains) loss on sales
      of interests in
      real estate (a)(b) 392,000     (454,000) (1,069,000)    (865,000)
    Provisions for losses     --           --     500,000           --
    Plus:
      Depreciation and
       amortization           --           --          --           --
      Wholly owned &
       consolidated
       partnership(c)  1,528,000    1,467,000   5,989,000    5,650,000
      Unconsolidated
       partnerships
       & joint ventures  925,000      813,000   3,380,000    3,334,000
     Refinancing prepayment
      fees               400,000           --   1,133,000           --
    Less:
      Depreciation of
       non-real estate
       assets            (57,000)     (52,000)   (222,000)    (202,000)
      Amortization of
       deferred financing
       costs             (70,000)     (87,000)   (286,000)    (333,000)
    Funds from
      Operations      $4,948,000   $4,504,000 $19,660,000  $18,628,000
    Funds from
      Operations
      per share            $0.57        $0.52       $2.27        $2.15

                               Three Months Ended            Year Ended
                                  August 31,                 August 31,
                            1997         1996        1997         1996
    Operating Results
    REVENUES
    Gross revenues from
      real estate    $10,115,000   $9,802,000 $40,231,000  $38,985,000
    Interest and
      other income        36,000       44,000     254,000      171,000
                      10,151,000    9,846,000  40,485,000   39,156,000
    EXPENSES
    Property operating
      expenses         4,135,000    4,211,000  16,289,000   16,102,000
    Depreciation
      and amortization 1,598,000    1,522,000   6,259,000    5,908,000
    General &
      administrative
      expenses           891,000      836,000   3,324,000    3,119,000
    Mortgage and bank
      loan interest    2,222,000    2,490,000   9,086,000    9,831,000
    Provision for losses
      on investments          --           --     500,000           --
                       8,846,000    9,059,000  35,458,000   34,960,000
    Income before minority
      interest, equity in
      income of partnerships
      & joint ventures and
      net gains on sales
      of interests in real
      estate           1,305,000      787,000   5,027,000    4,196,000
    Minority interest     66,000      (95,000)   (198,000)    (275,000)
    Equity in income of
      partnerships &
      joint ventures     851,000    1,681,000   4,337,000    6,258,000
    Income before gains
      (loss) on sales
      of interest in
      real estate      2,222,000    2,373,000   9,166,000   10,179,000
    Gains (loss) on
      sales of interests
      in real estate    (392,000)     454,000   1,069,000      865,000
    NET INCOME        $1,830,000   $2,827,000 $10,235,000  $11,044,000

                    PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
                             Selected Financial Data
                                    (Audited)

                              Three Months Ended             Year Ended
                                  August 31,                 August 31,
                            1997         1996        1997         1996
    PER SHARE DATA
    Net income before gains
      (loss) on sales of
      interest in real
      estate               $0.26        $0.28       $1.06        $1.17
    Gains (loss) on sales
      of interests in real
      estate (a), (b)     (0.05)         0.05        0.12         0.10
    NET INCOME PER SHARE   $0.21        $0.33       $1.18        $1.27
    Weighted average number
      of shares
      outstanding      8,681,000    8,676,000   8,679,000    8,676,000

    (a)  In 1997, three months ended August 31, 1997, loss on sale of
         property in Margate, FL of $392,000 ($0.05 per share). Year ended
         August 31, 1997 includes gains on sales of interest in three shopping
         centers in Lancaster, Beaver Falls and Waynesburg, PA of $1,461,000,
         offset by loss on sale of property in Margate, FL of $392,000 for a
         net gain on sales of $1,069,000 ($0.12 per share).
    (b)  In 1996, three months ended on August 31, 1996, gain on sale of an
         apartment in Midland, TX of $454,000 ($0.05 per share).  Year ended
         August 31, 1996 includes gains on sale of land in Bucks County, PA of
         $411,000 ($0.05 per share) and apartment property in Midland, TX of
         $454,000 ($0.05 per share) for a total of $865,000 ($0.10 per share).
    (c)  Net of minority interest


                             Three Months Ended            Year Ended
                                   August 31,               August 31,
                            1997         1996        1997         1996
    Equity in Income of Partnerships
    and Joint Ventures
    Gross revenues from
      real estate    $13,067,000  $13,084,000 $52,477,000  $53,209,000
    Expenses:
      Property operating
       expenses        5,213,000    5,188,000  20,774,000   21,724,000
      Mortgage and bank
       loan interest
       expense         3,307,000    2,873,000  13,443,000   11,984,000
      Refinancing prepayment
       penalty (d)            --           --   1,465,000           --
      Depreciation and
       amortization    1,910,000    1,655,000   6,978,000    6,833,000
                      10,430,000    9,716,000  42,660,000   40,541,000
                       2,637,000    3,388,000   9,817,000   12,668,000
    Partner's Share   (1,786,000)  (1,687,000) (5,480,000)  (6,410,000)
    Equity in income
      of partnerships
      and joint
      ventures          $851,000   $1,681,000  $4,337,000   $6,258,000

    (d)  The Trust's share is $1,133,000

    Note:  One partnership in which the Trust is a general partner, and has
           control as provided in the partnership agreement, has been
           consolidated for financial presentation.  All of these assets and
           liabilities are included in the consolidated financial statements
           at 100%.  The minority partner's interest is 35%.

               Supplemental Information for Wholly Owned Properties
      and the Trust's Proportionate Share of Partnerships and Joint Ventures

                              Three Months Ended           Year Ended
                                   August 31,               August 31,
                            1997         1996        1997         1996
    Earnings before Interest,
      Taxes, Depreciation
      and Amortization
      ("EBITDA")
    Gross revenues   $10,115,000   $9,802,000 $40,231,000  $38,985,000
    Operating expenses(4,136,000)  (4,211,000)(16,289,000) (16,102,000)
    Minority interest     66,000      (95,000)   (198,000)    (275,000)
    Net operating income
      wholly-owned
      properties       6,046,000    5,498,000  23,744,000   22,608,000
    Trust's proportionate
      share of partnerships
      and joint ventures
      net operating
      income           3,783,000    3,916,000  15,397,000   15,431,000
    Provision for losses      --           --    (500,000)          --
    Combined net
      operating income 9,829,000    9,412,000  38,641,000   38,039,000
    Interest income       36,000       44,000     254,000      171,000
    General and
      administrative
      expenses          (891,000)    (836,000) (3,324,000)  (3,119,000)
    EBITDA            $8,974,000   $8,620,000 $35,571,000  $35,091,000

    MORTGAGE NOTES AND BANK LOANS PAYABLE
    Wholly-Owned Properties
      Mortgage notes payable                $83,528,000    $84,833,000
      Bank loans payable                     33,884,000     39,315,000
                                            117,412,000    124,148,000
    Trust's Proportionate Share
      of Partnerships and Joint Ventures
      Mortgage notes payable                 77,751,000     63,416,000
      Bank loans payable                      5,184,000      5,856,000
    Total mortgage notes and bank loans
      payable                              $200,347,000   $193,420,000

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