Marketing Presentation 20 June 06 2010

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• PREIT is the oldest equity REIT in existence with over 50 years of Brand Equity and organizational experience. It manages 34 million square feet of commercial property. Its competencies span the Retail, Office and Multi-Family Sectors of Commercial Real Estate and its partnerships span the other sectors as well.

• In its core markets, PREIT’s name is synonymous with Best Demonstrated Practices and Institutional Grade Commercial Real Estate leadership across property types and business functions.

• PREIT Capital Advisors brings together in one service platform the extensive commercial real estate capabilities of PREIT - a leading NYSE traded REIT, the banking and lending experience of Christophe Terlizzi, the corporate finance and private equity experience of Daniel Dean.

• As a result, PREIT Capital Advisors is uniquely positioned to provide Portfolio Advisory Services to Lending Institutions facing distress with commercial real estate loans and or properties.

Company Background

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• PCA’ s mission is to resourcefully help lending institutions and institutional investors address and resolve their most complex commercial real estate issues and problems.

• PCA’ s geographic focus is on Mid-Atlantic and Northeastern markets where it can leverage the significant scale, marketing presence and infrastructure of Pennsylvania Real Estate Investment Trust (Symbol: PEI -- NYSE).

• PCA blends real estate capital markets expertise, principal investing and restructuring experience with corporate strategic planning and workout expertise to achieve superior results for its clients.

• PCA’ s principal/developer/owner/operator experience across multiple property types creates a broad and deep repository of property and market level real estate capabilities that, when combined with scale driven purchasing power, allows PCA to deliver immediate savings for its clients.

PREIT Capital Advisors (PCA)

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• Capital Markets Sophistication and Regulatory Awareness

• Property Development and Construction Expertise

• Property Management and Leasing Expertise

• Asset Management and Reporting Expertise

• Property Recapture and Integration Expertise

• Conservator and Receiver Expertise

• In-House Expertise with Retail, Office, Industrial and Multi-Family

• Expertise with Residential Land Development, For Sale Housing and Hospitality via Strategic Partnerships with “Best in Class” Providers

PCA Core Competencies

PREIT Capital Advisors is

geographically focused in

markets where it has an

established presence, broad

and deep relationships and

reasonable economies of

scale.

Click to zoom

“Extraordinary Times Call for

Extraordinary Measures”

Strategy

&

Restructuring

Property

Management

Capital Markets

Expertise

Asset

Management

PCA’s platform is the natural extension of the Company’s owner/operator heritage, super-regional

realty expertise, capital markets presence, and corporate infrastructure. It is positioned to maximize

value and minimize impairment in the midst of the continued erosion in market conditions for

commercial real estate.

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For Unmanaged Assets “Time Is The Enemy” – The PCA DifferenceR

ecov

ery

%

Asset Optimization

PCA Distressed

Asset

Services

Time

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PCA Process

Asset/Portfolio Evaluation

Near Term Disposition Medium Term Hold Longer Term Repositioning/

Redevelopment

Capital Markets/Asset Sale



Asset Management Asset Management

Property Management/Development

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Managing the Distressed Asset’s Lifecycle

Decision

Support

Asset Management/

Optimization

Restructuring/

Redevelopment/

Repositioning

• Assessment

• Evaluation/Re-Appraisal

• Budgeting/Forecasting

• Reporting

• Physical Recapture

• Asset Management

• Property Management

• Facilities Management

• Leasing

• Construction

• Development

• Financing/Marketing/Disposition

Minimize Write-downs and Maximize Proceeds

PCA takes a broad, systematic and entrepreneurial approach to dealing with complex

property level issues, recognizing and acting on opportunity, minimizing risk and

maximizing value. Its hallmark is its ability to position properties optimally for sale.

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• The erosion of market conditions for Commercial Real Estate is projected to intensify and pose increasingly complex challenges to lenders, investors and servicers, potentially often overwhelming their capacity to resolve defaults and recover their investments.

Why now?

• Finding and managing qualified experts to address issues using a “piece meal” approach

is risky, costly and time consuming, often leading to management intensive solutions that

by virtue of their fragmentation are less likely to achieve satisfactory results.

• Single solution outsourcing with PCA provides:

• Basis for Effective Cost/Expense Management

• Ability to Leverage Your Organizational Resources

• Transparency

• Optionality

• Removal of Execution Risk

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Process Recap

Evaluation and

Assessment

(Triage)

Strategy

and

Planning

Recommendations Execu

tion

Repor

ting

and

Monit

oring

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Sample Case Studies - Retail

Cherry Hill Mall

Cherry Hill, NJ

Regional Mall

• To restore and solidify property’s

premier Southern New Jersey

location and reputation.

• To reverse negative trend lines

on all of property’s fundamentals.

• Replaced vacated department store.

• Addressed aging infrastructure.

• Responded to increased competition.

• Created super-regional retail fortress

and most significant shopping node in

region.

• Received entitlements to add a

Nordstrom’s and 90,000SF of new

best-in-class restaurant and fashion

retail.

• Drove overall sales/SF in complex

up by nearly $100.

• Received national recognition for

design.

• Drove “waiting list” tenant demand for

property.

• Achieved 100% of pro-forma rents

during historically challenged time in

retail sector.

Property name Challenges Accomplishments Relevance

Plymouth Meeting Mall

Plymouth Meeting, PA

Regional Mall

• To differentiate a very well located,

but poorly merchandised property.

• To re-configure and re-

merchandise property in the face

of very stiff competition and an

uncooperative municipality.

• Created an open-air food and

entertainment destination in excess of

100,000SF with national brands such

as Dave & Busters, Whole Foods and

PF Chang’s.

• Demolition and re-configuration of

100,000SF of vacancy generated in

excess of $80 million of incremental

net sales.

• Remerchandising served as catalyst

to absorb all of the vacancy in balance

of property.

Mall at Prince Georges

Hyattsville, MD

Regional Mall/

Power Center

•Significantly un-utilized land parcel

and unrealized Leasing Upsides

• Added Target as anchor tenant in

2004.

• Added Marshall’s and Ross Dress for

Less in locations that were perceived

to be “the back of the mall”.

• Created over $100 million in

incremental value in time for

refinancing of property at par in 2008.

Sample Case Studies - Office

Mellon Banks Center

Philadelphia, PA

Central Business District

Office Tower

• Significant soils based

environmental issues on the

property.

• Low level use as Greyhound Bus

Terminal.

• Relocated Greyhound to new site.

• In JV with Equitable, constructed and

leased 54 story,1.3 million SF Class A

office tower.

• At the time was premier building in

Philadelphia.

• Project completed on budget.

• Building was 100% leased at opening.

• Building had highest rental structure of

any office building in the City.


40 Monument Road

Bala Cynwyd, PA

Suburban Office Building

• Constrictive parking code

prevented high density

development.

• Land Owner/JV partner needed to

accomplish structure to defer tax

consequences.

• Utilized JV structure with CBS.

• Achieved parking variance and

negotiated cross easements with

adjoining landowner to facilitate high

density development.

• Karr Barth, a division of Equitable,

occupied majority of building.

• Developed HQ office in strong

suburban office market at high rents.

• Excellent creditworthiness of tenant

facilitated high permanent loan

advance rate and enabled CBS’

goals in entering JV.

Sample Case Studies – Mixed Use

Voorhees Town Center

Voorhees, NJ

Mixed-use, retail,

residential, office

• To reduce significant retail

overcapacity and re-deploy space

to other profitable uses.

• To meet the above challenge with

the support of municipal and

resident concerns.

• In JV with local multi-family developer,

demolished 250,000SF of vacant

retail space.

• Constructed mixed-use project

consisting of apartments, office, street

retail and traditional mall uses.

• Converted 250,000SF of largely

vacant mall space into 475 multi-family

units, a 48,000SF100% leased HQ

office building, and 100,000SF of

vibrant street retail.

801 Market Street

Philadelphia, PA

Adaptive Re-use

• To rehabilitate and modernize a

vacant historic building into modern

space usage while preserving its

historic features.

• Completed $80MM historic renovation

ahead of schedule and under budget,

achieved LEED certification, and

obtained historic tax credits.

• Delivered new office and retail space.

• Attracted State of Pennsylvania as

lead office tenant, paying market rents

for 220,000SF of leased space.


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CBD Office – Viewpoint

Mellon Bank Center1735 Market Street

Philadelphia, PA

Floors: 53

Class: A

Building Area:

1,327,689 SF

Site area: 55,000 SF

Lobby retail: 15,189 SF

Concourse retail: 23,975 SF

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Suburban Development – Viewpoint

40 Monument Road40 Monument Road

Bala Cynwyd, PA

Floors: 5

Class: A

Bldg Area: 80,463 SF

Site area: 208,008 SF

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Adaptive Re-Use - Viewpoint

801 Market Street

801 Market Street

Philadelphia, PA

Floors: 13

Class: A

Building Area: 382,487 SF

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Christophe Terlizzi

Chris Terlizzi’s career in commercial banking and real estate lending spans more than 37 years and

includes executive leadership positions at Citizens Bank, Fleet Bank and Fidelity Bank. He is expert

at building and operating commercial real estate lending platforms, specializing in project specific

transactions as well as enterprise level debt capitalization. As a senior banking executive, Chris has

had full P & L responsibility for over 15 years in enterprises that have topped $3.5 billion in CRE

assets with net earnings of more than $80 million. In this capacity, he has been responsible for

managing business origination, underwriting, approval, closing, servicing, restructuring, workouts,

policy, compliance and portfolio management with a focus on the Mid Atlantic region.

Chris is the current chairman of Urban Land Institute (ULI) Philadelphia, a non-profit education and

research institute whose mission is to provide responsible leadership in the use of land.

ULI Philadelphia encompasses more than 1,100 members throughout Eastern and Central Pennsylvania, the southern half of New Jersey

and the State of Delaware. In addition, he serves on the boards of Central Philadelphia Development Corporation, Center City District,

10,000 Friends of Pennsylvania and the Preservation Alliance of Greater Philadelphia. He is a graduate of St. Joseph’s University where he

earned a B.S. in Business Administration.

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PREIT Capital Advisors Team

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Daniel Dean

Dan Dean is a financial and operating executive with substantial experience in commercial real

estate, multi-unit restaurant and retail, franchising, restructurings, and private equity. His experience

has spanned financial, operating and corporate governance roles in public and private enterprises

and has included workouts and corporate finance roles involving, among other things, underwriting

and structuring of debt and equity investments. He has been intimately involved in the development,

implementation and management of organizational initiatives, conflict resolution, workouts and

strategic and tactical plans.

Mr. Dean was a founder of United Enterprise Fund, L.P. (UEF), a fund fully dedicated to the franchise

restaurant industry. There, in addition to his role as portfolio manager, he has played interim

operating roles and has held leadership positions on several Boards of Directors.

He started his 25-year business career in retail and residential real estate acquisitions and mortgage finance before joining PepsiCo, Inc.’s

renowned PepsiCo Restaurant Group, where he was involved in strategic planning, corporate finance, and workouts. While at PepsiCo, he

worked with operations management to execute turnarounds at underperforming units. Dan earned a BA in English Literature from

Columbia College in 1983, and an MBA in Marketing & Finance from The Wharton School at the University of Pennsylvania in 1994.

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Timothy Rubin

During his 22 year tenure at PREIT, Tim Rubin has advanced through several positions of increasing

responsibility within the organization. Presently he holds the position of Executive Vice President of

Leasing, where his primary responsibilities include the oversight of all department store, anchor

and off-mall leasing within PREIT’s 34 million square foot retail portfolio across 13 states. Prior to

this, he managed the Leasing Department's sales force of 30 people and his primary responsibility

was the delivery of over $500 million of total annual revenue through leasing activity that generated,

on average, one million square feet per year. While serving as the head of leasing, Tim played an

instrumental role in the successful execution of PREIT’s $1 billion portfolio redevelopment initiative,

highlights of which include the redevelopments of Cherry Hill Mall, Plymouth Meeting Mall,

Patrick Henry Mall and Voorhees Town Center. He has also held several positions in the organization related to development and

redevelopment in which he has been responsible for the coordination and completion of projects ranging from the J C Penney addition at

Beaver Valley Mall outside of Pittsburgh, to the expansion and renovation of Cumberland Mall in Vineland, NJ.

Mr. Rubin earned a Masters of Business Administration from Temple University, and a Bachelor of Arts degree from Lafayette College. He is

a member of the International Council of Shopping Centers (ICSC), the National Retail Federation and holds a Real Estate Sales License in

the state of Pennsylvania.

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Douglas Grayson

Doug Grayson joined PREIT in 1990 as a development director and asset manager. In 1998, he

was promoted to executive vice president with the responsibility of running the Development Division

of the company. His primary responsibility is to manage all of the company’s development activities,

which includes the supervision of the professional staff engaged in the responsibilities of site

acquisition, feasibility assessment and analysis, planning, permitting and implementing prospective

development projects. Before coming to PREIT he worked in a development capacity for The

CoreGroup, a Philadelphia based real estate company with projects in the Delaware Valley and

Puerto Rico. Prior to the CoreGroup, Mr. Grayson co-founded a micro-computing consulting firm in

Austin, TX. He also worked as a manager for Westin Hotels.

Mr. Grayson earned a BA in Economics from the University of Pennsylvania in 1980 and an MBA from the University of Texas at Austin in

1986.

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Mario Ventresca

Mario Ventresca is Senior Vice President of Asset Management at PREIT, overseeing

all related activities for the company’s 34 million square foot portfolio. Mr. Ventresca joined

PREIT in 1994 as a Financial Analyst in the Acquisitions group, was promoted in 2000 to

Vice President of Acquisitions and later in 2000 assumed the role of Vice President with the

responsibility for the Asset Management group of the organization. Prior to his employ with

PREIT, he worked for Kravco Company, a King of Prussia, Pennsylvania-based owner and

manager of retail real estate. He has served as Dean of the School of Finance, Accounting and

Lease Administration for the International Council of Shopping Centers University of Shopping

Centers, and regularly leads ICSC roundtables and accreditation courses.

Mr. Ventresca earned a Bachelors of Business Administration from Temple University.

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Scott Petrie

Scott Petrie has been responsible for the entire scope of general management functions for the

PREIT portfolio of shopping centers since 1998. While at PREIT’s predecessor company, Mr. Petrie

held the position of Director of Operations for The Rubin-Strouse Greenberg Value Oriented Retail

Group. In that capacity, he was responsible for all property management functions of the company’s

7.5 million square foot retail portfolio. Prior to his employ with Strouse Greenberg, he was employed

by The Edward J. DeBartolo Corporation as a General Manager, in which role he oversaw the

management of approximately 2.8 million square feet of commercial space.

Mr. Petrie holds a Bachelor of Arts Degree from the University of Dayton, has the designation of

Senior Certified Shopping Center Manager (SCSM) from the International Council of Shopping

Centers, and maintains real estate licenses in both Pennsylvania and North Carolina.

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