november 2016 investor update

I N V E S T O R U P D AT E N O V E M B E R 2 0 1 6 Quality Properties in Compelling Markets

OUR VALUE PROPOSITION Quality Properties in Compelling Markets

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PREIT’s retail portfolio comprises 25 million square feet of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences, located primarily in the eastern U.S. with concentrations in the mid-Atlantic’s top MSAs.

Since 2012, the company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength highlighted by disciplined capital expenditures.

Who we are

Our progress

Where we’re headed

Our value-enhancing redevelopment and remerchandising program leads us down a clear path to sales of $500 per square foot and is poised to deliver NOI and NAV growth into the future, leading to continued FFO growth and multiple expansion.

OPERATING HIGHLIGHTS Results as of 9.30.16

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FFO, as adjusted per share growth (1)

Same Store NOI growth (quarter) Average Quarterly SS NOI growth Average Renewal Spreads YTD Sales PSF/growth Non-Anchor Mall Occupancy % Non-Anchor Mall Leased %

14%

5.2%

4.3%

14.8%

$460/+8.5%

92.2%

93.7%

(1) Excluding dilution from asset sales

STRATEGIC VISION PREIT will continue to enhance its strong platform for growth

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$500 psf in sales

More than 60% of NOI generated from top 10 MSAs

Sustained NOI growth greater than 3%

Leverage below 48%

AN OPTIMISTIC OUTLOOK

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Exciting prospects in process for pending Macy’s closures and proactively recaptured Sears boxes

Expanding relationships with in-demand retailers

Value-creating redevelopments coming to bear in next 18 months

We’re in the 9th inning of our disposition program

We are in the midst of a continuous cycle of improvement

A strong, diverse retail environment is emerging

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DISPOSITION PROGRAM Overview of impact

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$671 million Raised through strategic disposition program since 2012

14 Malls Sold Generating average sales of $274 per square foot

Under Contract Beaver Valley Mall is under Agreement of Sale

Listed for Sale Crossroads Mall being marketed for sale as part of ongoing portfolio paring and capital recycling efforts


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CYCLE OF IMPROVEMENT

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Better Portfolio

Better Tenants

Improved Shopper

Demographics

Sales Growth

More NOI/Lower Cap Rate

Value Creation

PREIT currently has $10 million of annualized gross rent in backlog of executed leases


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DEPARTMENT STORE EVOLUTION 1985 vs Today

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Abraham & Strauss Frederick & Nelson Kaufmann’s Rich’s

Bamberger’s Filene’s LS Ayers Robinson-May

Belk Foley’s Lazarus Saks 5th Avenue

Bloomingdale’s Gayfer’s Liberty House Sears

Bon Marche Gimbel’s Lord & Taylor Sibley’s

Boscov’s Goldsmith’s Macy’s Strawbridge & Clothier

Boston Store Gottshalks Marshall Field’s The Bon-Ton

Bullocks Hechts McRae’s Von Maur

Burdines Hess Meier & Frank Wanamaker’s

Carter Hawley Hale Hudson’s Mervyn’s Woodward & Lothorp

Caster Knot I. Magnin Neiman Marcus ZCMI

Dayton’s JC Penney Nordstrom

Dillard’s Jones Store Parisian

Famous-Barr Jordan Marsh Pomeroy’s

The department store landscape has been evolving continuously for over 30 years

DEPARTMENT STORE REPLACEMENTS Opportunity to improve mall traffic

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EXPANDING DEPARTMENT STORES

RESTAURANTS & ENTERTAINMENT

OFF PRICE MERCHANTS

LARGE FORMAT STORES

Sales at PREIT’s same store malls have grown by 10% in 3 years, Department stores have declined

MACY’S STORE CLOSURES Impact on PREIT

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3-5 closures expected as a result of announcement by Macy’s to close 100 stores

• Off-price luxury retailers and a small format gourmet grocer

• Popular Sporting Goods retailer and Outdoor Sportsman shop along with additional specialty retail and restaurant GLA, consistent with existing mall experience

• Expanded full-line department store, replacing old location with new in-line space and a fitness facility

• Full line department store or large format home furnishings operation

• Full line department store moving into new market along with popular off price merchants

Internal task force created with goal of filling boxes in 28 months with following opportunities being pursued:

OPERATION

SUCCESSFUL HISTORY OF REPURPOSING A look at the May Company/Federated (Macy’s Inc) merger

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Cherry Hill Mall

Springfield Mall

Willow Grove Park

The Gallery/Fashion Outlets of Philadelphia

PROACTIVE SEARS RECAPTURES Methodically reducing exposure

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• New-to-portfolio Fashion Department store along with 30,000 sf of space, junior box and polished casual restaurant additions

• Popular Sporting Goods retailer long with additional specialty retail GLA

• Addition of 2-3 off-price boxes

PREIT has methodically reduced exposure to Sears from 29 stores in 2012 to 11 today following 3 additional recaptures

JUNE 2012

Assets Sold

Recaptured

FUTURE

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(10)

(6)

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EXPANDING RETAILER RELATIONSHIPS In-demand retailers opting in to PREIT portfolio

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5 new locations OPEN 1 under construction

New-to-portfolio tenants signed

New leases executed as part of remerchandising Mall at PG

Joining Dick’s and Field & Stream to replace Sears at Viewmont Mall

New-to-portfolio dining and entertainment additions

70K sf new prototype stores OPEN

New anchors OPEN

Dining and Entertainment tenants now account for 15% of non-anchor space with room to grow


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Cost (in millions)

Targeted Return

Stabilized Year

Fashion Outlets of Philadelphia $152.5-$182.5(1) 8% - 9% 2020

Exton Square Mall $30-$33 9% - 10% 2018

Plymouth Meeting Mall $6.6 - $7.3 8% - 9% 2018

Cumberland Mall $7.5 - $8.3 9% - 10% 2017

Mall at Prince Georges $29.3 8% - 9% 2018

Viewmont Mall $15.8 8% - 9% 2018

ACTIVE REDEVELOPMENT PROJECTS Summary

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(1) PREIT Share of Cost before public financing

FASHION OUTLETS OF PHILADELPHIA Philadelphia, PA

(1) JV Cost

(2) Net of Grants

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THE MARKET: Population Average HHI Average Home Value Daytime Population

THE STORY: Spanning three city blocks, the Fashion Outlets of Philadelphia will offer a fusion of outlet retail taking the form of luxury and moderate brands, traditional mall retail, popular flagship retail, destination dining experiences and entertainment offerings. Opening in 2018 with bright, contemporary spaces that will welcome shoppers and reconnect to Market Street with accessible storefronts, sidewalk cafés, a new streetscape, digital signage and graphics, all complementing the existing office space.

PROJECT DETAILS Cost $365 million (1)

Net Cost $336 million (2)

Targeted Return 8%-9% Stabilized Year 2020

6,302,012

$86,507 $288,340

6,693,353

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Federal / City Building

Parking (3150 spaces)

Tourist Attractions

Hospitals

Hotels & Convention Center

Other

FOP & PREIT Offices


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Spring 2018 Grand Re-opening


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PHILADELPHIA RISING

Bon Appetit touted Philadelphia as one of ‘America’s Greatest Eating Cities,’ 2016

The largest percentage increase in Millennial population among the 10 largest cities in America, according to the Philadelphia Inquirer

% Increase in Millennial Population since 2005

CBRE reports that there has been a 288% increase in HH making more than $500K in 15 years

Philadelphia ranked #1 among Top 10 Cities Leading the Way in Walkable New Construction, according to Redfin

National Feature Events: Pope’s visit (2015), Democratic National Convention (2016), NFL Draft (2017)

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THE MARKET: Population Average HHI Daytime Population

THE STORY: Capitalizing on the over 90 million cars passing the center every year and expanding the mall’s trade area to a 2-hour drive time, Plymouth Meeting will become a true destination for visitors. The the addition of LEGOLAND Discovery Center will complement an already unique experience that combines great shopping with destination entertainment, high quality dining and a gourmet grocer.

1,008,315

$92,967 1,116,568

PROJECT DETAILS Cost $6.6 - $7.3 million Targeted Return 8%-9% Stabilized Year 2018

PLYMOUTH MEETING MALL Plymouth Meeting, PA

FUTURE DENSIFICATION OPPORTUNITY Plymouth Meeting Mall – Plymouth Meeting, PA

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THE MARKET: Population Average HHI Average Home Value Daytime Population

THE STORY : Located in Chester County, the wealthiest and fastest growing in PA, Exton

Square Mall sits at the heart of the area’s retail hub. Noted for its strong line-up of national

retailers in a convenient, easy-to-shop setting, the property will see an increase in traffic with

the addition of a Whole Foods Market, opening in 2017, and family entertainment

destination, Round 1 in December 2016.

522,688

$109,631 $369,499

544,048

PROJECT DETAILS Cost $30-$33 million Targeted Return 9%-10% Stabilized Year 2018

EXTON SQUARE Exton, PA

CONSTRUCTION STATUS Exton Square – Phase I

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THE STORY: The spring 2015 closure of JC Penney presented the opportunity to upgrade Cumberland Mall. The former anchor box sits at the most visible corner of the property and immediately attracted the attention of retailers looking to relocate to the mall. Dick’s Sporting Goods replaced JC Penney in October 2016. As the only Dick’s Sporting Goods for over 20 miles, the store will drive incremental traffic to the center and solidify its position in the market.

920,251 $79,272 881,662

PROJECT DETAILS Cost $7.5 - $8.3 million Targeted Return 9% - 10% Stabilized Year 2017

CUMBERLAND MALL Vineland, NJ

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THE STORY Just 2 miles from the University of Maryland and minutes from Washington DC, the Mall at Prince Georges’ position in the market is strengthened by the volume of development immediately surrounding the property – over $1 billion in recent development has occurred in the trade area. A remerchandising program, highlighted by H&M, DSW, ULTA. 73% of the non-anchor space will be updated with new tenants or new store prototypes.

The addition of fast casual restaurants along the exterior of the mall will add to the curb appeal of the property and increase mall traffic.

1,514,259

$86,108 1,516,634

PROJECT DETAILS Cost $29.3million Targeted Return 8%-9% Stabilized Year 2018

MALL AT PRINCE GEORGES Hyattsville, MD

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1. Belcrest Plaza: 25 acre redevelopment, 2,675 residential units, multi family/town homes;

2. 3350 at Alterra 283 multi-family units

3. Post Park: $87M mixed use project. 396 high-end apartment homes

4. Kiplinger Property: $73M, 452-unit with 34,200 sf of retail space.

5. The Gateway at University Town Center: $7M addition completed in 2015.

6. Mosaic at Metro: 260 luxury apartments

7. College Park Place: $20M, 156-room Courtyard by Marriot, with retail and apartments

8. University of Maryland Conference Hotel: $150M facility with 300 hotel rooms and 43,000 SF of conference space.

9. Terrapin Row: $8M student housing complex with 1,575+ beds.

10. Landmark College Park: Student housing with 850 beds and

11. The Reserve at College Heights: Single-family luxury homes.

12. M-Square: Largest research park in MD ($500M+ invested). 6,500+ employees.

13. Riverdale Park Station: $250M mixed-use project including county’s first Whole Foods.

14. Arts District at Hyattsville: $213M, award-winning mixed use


http://coptproperties.com/pdf/M2_4400.pdf

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Enlivened façade


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THE STORY : Viewmont Mall has recently been a focus in PREIT's remerchandising strategy. Viewmont's tenancy upgrade, which include the recent addition of Ulta, Buffalo Wild Wings, Forever 21 and Yankee Candle along with new prototypes for several key retailers, set the stage for a second phase of redevelopment.

With property sales soaring, a proactive recapture of the Sears anchor has paved the way for a new combination Dick’s Sporting Goods / Field & Stream store accompanied by a recenltly executed HomeGoods, which will open in Holiday 2017, adding to the mall’s impressive line up of destination, traffic driving tenants.

380,826 $63,020 381,426

PROJECT DETAILS Cost $15.8 million Targeted Return 8%-9% Stabilized Year 2018

VIEWMONT MALL Scranton, PA

ACTIVE REDEVELOPMENT Viewmont Mall – Scranton, PA

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INCREASINGLY OMNICHANNEL WORLD

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E-tailers are increasingly opening physical stores • Customer acquisition cost savings • Cost effective distribution channel

Continued emergence of BOPIS (Buy Online, Pick Up in Store) • 61% of retailers worldwide offer the service and 45% of customers have used it. • instant gratification for consumers AND they don’t have to waste time searching

for product. • Ancillary purchases

It was a really humbling discovery to learn that retail stores were going to be one of the core parts of what was originally conceived as a digital-only brand. - Andy Dunn, CEO, Bonobos

EXPANDING RETAILERS Performing retailers are still expanding

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CAPITAL ALLOCATION PROTOCOL Careful, measured approach

Priority given to A malls and high-quality B’s that are cap rate transformative

Limit number and scope of projects being pursued at any given point

Priority given to value enhancing (offensive) projects vs. maintaining (defensive)

Timing of outlay & balance sheet impact modeled to ensure internal targets are achieved

Predevelopment costs capped

Targeted returns of 200-300 bps over trading cap rate

Minimum leasing thresholds required before commitment is finalized

BALANCE SHEET PILLARS Focus on continued improvement

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We will continue to reduce leverage through asset sales and NOI growth

We have ample liquidity to complete projects underway and protect us in the event of a downturn

Our debt maturity schedule protects us from disruptions in credit markets

We have limited exposure to variable interest rates

CAPITAL SOURCES Options

• Asset Sales

• Power Center JV sale

• Mall JVs

• Recapitalize Preferred

• Construction Loans

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VALUE CREATION FRAMEWORK Pathway to Driving Shareholder Value

Portfolio Optimization

Executing Growth Initiatives

Performance Priority

Measured Capital Allocation

Continue to evaluate all properties and divest when necessary or invest when the opportunity presents itself.

Myopic focus on delivering results that rival the high quality peer set, namely 3%+ SS NOI growth.

The scale of our portfolio provides an opportunity to impact the platform through well - executed repositioning projects

Attention to balance sheet is a must with a focus on timing of spend and risk-adjusted returns.

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FORWARD LOOKING STATEMENT

This presentation contains certain "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements

relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts.

These forward-looking statements reflect our current views about future events, achievements or results and are subject to risks, uncertainties

and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by

the forward-looking statements. In particular, our business might be materially and adversely affected by uncertainties affecting real estate

businesses generally as well as the following, among other factors: our substantial debt, stated value of preferred shares and our high

leverage ratio; constraining leverage, interest and tangible net worth covenants under our 2013 Revolving Facility, our 2014 Term Loans and

our 2015 Term Loan; potential losses on impairment of certain long-lived assets, such as real estate, or of intangible assets, such as goodwill,

including such losses that we might be required to record in connection with any dispositions of assets; changes to our corporate management

team and any resulting modifications to our business strategies; our ability to refinance our existing indebtedness when it matures, on

favorable terms or at all; our ability to raise capital, including through the issuance of equity or equity-related securities if market conditions are

favorable, through joint ventures or other partnerships, through sales of properties or interests in properties, or through other actions; our

ability to identify and execute on suitable acquisition opportunities and to integrate acquired properties into our portfolio; our partnerships and

joint ventures with third parties to acquire or develop properties; our short- and long-term liquidity position; current economic conditions and

their effect on employment, consumer confidence and spending and the corresponding effects on tenant business performance, prospects,

solvency and leasing decisions and on our cash flows, and the value and potential impairment of our properties; general economic, financial

and political conditions, including credit market conditions, changes in interest rates or unemployment; changes in the retail industry, including

consolidation and store closings, particularly among anchor tenants; the effects of online shopping and other uses of technology on our retail

tenants; our ability to sell properties that we seek to dispose of or our ability to obtain estimated sale prices; our ability to maintain and

increase property occupancy, sales and rental rates, in light of the relatively high number of leases that have expired or are expiring in the

next two years; acts of violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales;

increases in operating costs that cannot be passed on to tenants; risks relating to development and redevelopment activities which could be

subject to delays or other risks and might not yield the returns we anticipate; concentration of our properties in the Mid-Atlantic region;

changes in local market conditions, such as the supply of or demand for retail space, or other competitive factors; and potential dilution from

any capital raising transactions. Additional factors that might cause future events, achievements or results to differ materially from those

expressed or implied by our forward-looking statements include those discussed in our most recent Annual Report on Form 10-K and in any

subsequent Quarterly Report on Form 10-Q in the section entitled "Item 1A. Risk Factors." We do not intend to update or revise any forward-

looking statements to reflect new information, future events or otherwise.

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november 2016 investor update

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