investor day

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.

ITINERARY

Travel to Fashion Outlets of Philadelphia

Management Presentation 8:30-11:00 AM

12:30 – 1:15 PM

11:00 AM – noon

On Site Fashion Outlets of Philadelphia Presentation 1:30 – 2:30 PM

Joseph F. Coradino

BREAKING NEWS

Non refundable deposit received for Palmer Park Mall

Non refundable deposit received for three mall package

KEY CATALYSTS Our future is bright

Move to QUALITY is pronounced and accelerating

RESULTS achieved are demonstrable and sustainable

Experiencing a dramatic increase in new retail DEMAND

REDEVELOPMENT opportunities are realizable and impactful

Balance sheet is STRONG and improving

SHAREHOLDER VALUE

BACK TO THE FUTURE

A LOOK BACK AND FORWARD

A VISION REALIZED A sustainable, growing platform

Balance Sheet Improvement

Operational Excellence

Elevating Portfolio Quality

Positioning for Growth

In 2012 we outlined a strategy focused on 4 key objectives to drive NAV and shareholder value:

We have created a sustainable, stable platform with a flexible balance sheet with realizable growth opportunities.

NEXT STAGE A sustainable, growing platform

$500 psf in sales

More than 50% of NOI generated from top 10 MSAs

Sustained NOI growth greater than 3%

Leverage below 48%

WHERE WE ARE Goals Per 2012 Investor Day

Enhanced Portfolio Quality Strengthened the Balance Sheet

Measure of Success 9/30/12 2015 Goal 12/31/15

Estimate (1)

Leverage 62% < 55% <50%

Debt/EBITDA 8.8 < 7.5 8.0

SS NOI Growth 1–2% > 3% Upper end of

guidance range of 2-2.7%

Total Mall Occupancy 92.6% 95.0% 95.4%

Occupancy Cost 11.4% 12.5% 12.7%

Sales PSF $379 > $400 $428

(1) Sales figure is from 9/30/15

STRONG, FLEXIBLE BALANCE SHEET

Ample Liquidity

Laddered maturities

Minimal exposure to floating rate debt

Plan to reduce leverage below 47% by end of 2018

SALES OUTPACING OCCUPANCY COSTS Opportunity to drive rents to correlate with sales growth

12 (1) Excludes 6 malls currently marketed for sale, Fashion Outlets of Philadelphia and Springfield Town Center

IMPROVING RENEWAL RENT SPREADS Improved portfolio balances leverage with tenants

G&A AS % OF REVENUE Reduced and scalable G&A

SS NOI COMPOSITION Percentage of NOI from high productivity properties increasing

KEY TAKEAWAYS Our future is bright

Our move to QUALITY is pronounced and accelerating

RESULTS achieved demonstrate our success

We are experiencing a dramatic increase in new retail DEMAND

Our balance sheet is STRONG and improving

SELECT ANCHOR PROFILE Reduced exposure to select anchors

29 16 12

29 19 19

12 3 3

Tenant # of locations

# of locations

post-disposition # of locations

post-recapture

A UNIQUE PLATFORM Realizing a Transformed PREIT

Concentration in densely populated, high barrier-to-entry markets

High quality assets in two Top 10 MSAs is attracting productive retailers

Opportunities to improve asset quality through remerchandising & redevelopment

Significantly reduced risk profile through dispositions

Well-positioned portfolio with high-quality assets

Mitigated anchor exposure through asset sales & replacement initiative

Scale allows for intensive focus by senior management on priority endeavors

Improved portfolio has provided ability to attract and retain top talent

TCO MAC SPG GGP PEI CBL WPG RSE

Sales per square foot $805 $630 $616 $593 $424 $371 $352 $345

TTM sales growth 1.9% 7.0% 0.5% 3.7% 9.6% 4.2% 5.6% 7.1%

SS NOI (2015E) 3.1% 5.8% 4.0% 4.0% 2.5% -0.6% -1.2% 3.3%

Occupancy 91.7% 95.7% 95.9% 95.2% 91.9% 90.8% 90.2% 89.5%

Occupancy cost ratio 13.8% 13.2% 12.1% 13.3% 12.7% 13.0% 12.7% 11.1%

Releasing spreads 15% 15% 18% 10% 6% 7% 0% 7%

Average HHI $68k $63k $64k $59k $57k $54k $56k $53k

Source: Green Street Advisors, Mall Sector Update, November 11, 2015 (All operating data as of September 30, 2015)

SHIFTING PEER GROUP Improving position

TCO MAC SPG GGP PEI CBL WPG RSE

G&A/Asset value(bps) 36 33 14 50 60 53 60 105

Total leverage ratio 28% 28% 30% 39% 48% 56% 51% 62%

Debt/EBITDA 7.7x 6.6x 6.1x 8.9x 7.8x 7.0x 6.8x 8.8x

Floating rate exposure 25% 18% 10% 19% 11% 24% 25% 26%

Credit Line Maturity 2020 2018 2019 2020 2020 2020 2019 2018

Net Asset Value/Share $116 $93 $227 $35 $33 $26 $18 $17

Source: Green Street Advisors, Mall Sector Update, November 11, 2015 (All operating data as of September 30, 2015)

SHIFTING PEER GROUP Improving position

IMPROVED LINEUP Bringing shoppers more of what they want

Tenant # of locations

# of locations

2015 (1)

(1) Includes executed leases not yet open

NEW-TO-PORTFOLIO TENANCY Since 2012, PREIT has added x new tenants to the portfolio

Marquee first-to-portfolio tenants

Century 21 opened their first store outside of NY Metro in Philadelphia.

Legoland Discovery Center will join Plymouth Meeting in 2017; one of only 9 in the US.

ELEVATING PORTFOLIO QUALITY Transformed tenancy driving sales & quality of earning stream

INCREASING

DECREASING

OUT OF TOP 20

KEY TAKEAWAYS Our future is bright

OUR TEAM

Robert McCadden

Executive Vice President & Chief Financial Officer

Joseph Aristone

Senior Vice President Leasing

Bruce Goldman

Executive Vice President General Counsel & Secretary

Daniel Herman

Senior Vice President Redevelopment

Andrew Ioannou

Executive Vice President Finance & Acquisitions

Mario Ventresca, Jr.

Executive Vice President Operations

Heather Crowell

Vice President Investor Relations & Corporate Communications

CULTURAL EVOLUTION New Production Talent

VP, Development Leasing

VP, Retail Leasing

Director, Retail Leasing

Director, Partnership Marketing

Sr Director, Partnership Marketing

31 years experience

25 years experience

18 years experience

30 years experience

10 years experience

13 years experience

Previous developer: Vornado, Federal, GGP

Previous developer: Simon, GGP

Previous developer: Westfield, Forest City, Prime Retail

Previous developer: Simon

Previous developer: CBL

Previous developer: Westfield

Michael

Khouri

Jeffrey

Sneddon

DiPeso

Linehan

McCommons

Degraffenreid

TALENT EVOLUTION Attracting & Maintaining Key Production Personnel

Quality Portfolio

Quality People

Quality Tenants EXCEPTIONAL

RESULTS

POST-TRANSFORMATION A higher quality mall company

25 Quality malls

• 55% NOI generated from top 10 MSAs

$450 psf

• With clear path to $500 psf

$90k • Average HHI from metro portfolio

3% SS NOI growth +

TOP US MARKETS Twelve Malls in Top 10 DMAs

Philadelphia, PA Washington DC

PHILADELPHIA MARKET PRESENCE PREIT is the Dominant Enclosed Mall Landlord in the 6th largest MSA

Own 41% of the enclosed mall GLA in the Philadelphia Metro Area Serve 6+ Million residents and 40 million visitors in the Philadelphia Metro Area

Exton Square Mall

Springfield Mall

Cumberland Mall

Moorestown Mall Cherry Hill Mall

Gloucester Premium Outlets

Willow Grove Park

Plymouth Meeting Mall

Fashion Outlets

PHILADELPHIA MARKET STRENGTH How the region compares

• 2nd Highest Urban Population Density • 4th Largest Media Market • 6th Largest Personal Income • 6th Largest Employment Market • 7th in Academic R&D Expenditures

PHILADELPHIA MARKET STRENGTH People want to be here

Over 25 Fortune 1,000 companies call the Philadelphia Region home

Diverse & stable economy bolstered by healthcare, pharma and education

Lowest rental rate for Class A office and industrial space compared to New York, Boston, Washington DC and Atlanta

Lowest Cost of Living of Northeast US metros

Largest percentage growth in millenials among the nation’s 30 largest cities

Home to over 100 degree granting institutions educating nearly 500,000 students

WASHINGTON DC MARKET PRESENCE PREIT has established a strong presence in the 7th largest MSA

• Own 4 of 19 enclosed malls serving unique and growing markets

• Serve 3+ million residents and tens of millions of visitors in the Washington DC Metro Area

Valley Mall

Francis Scott Key Mall

Mall at Prince Georges

Springfield Town Center

WASHINGTON DC MARKET INSIGHTS 3rd Wealthiest MSA in the country

Fairfax County Prince Georges County

Frederick County Washington County

• 3rd wealthiest county in the US • Gross County Product is nearly $100 billion • 18% Population Growth since 2000

• DC Suburb just to the northeast of downtown DC

• $1 billion in nearby developments continue to create density and attract educated, young residents to the area

• Interstates 70 and 270 offer direct access to Washington DC & Baltimore

• Upscale community with benefits of proximity to urban areas mixed with quieter country living

• 42% of households earn $100k+

• One of the fastest growing counties on the east coast

• 25% Population Growth since 2000 • Residents lured by lower cost of living and

convenience of living on I-81 corridor

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.

Move to QUALITY is pronounced and accelerating

RESULTS achieved are demonstrable and sustainable

Experiencing a dramatic increase in new retail DEMAND

Balance sheet is STRONG and improving

Heather Crowell

VP, Corporate Communications & Investor

Relations

SHAREHOLDER RELATIONS

INVESTOR PERSPECTIVE

Top 5 active shareholders were not or were nominal holders 3 yrs ago

Activated shareholder relations program

Goal to increase sell side coverage

Dramatic increase in institutional ownership to 81%

GOVERNANCE PRIORITY

Five board changes in three years; reduced average tenure and increased independent director percentage

Eliminated Executive Chairman role

Significant share ownership requirements for CEO and Board

ISS Quickscore of 3 demonstrates low governance risk • Strong pay for performance alignment

Source: SNL

MALL SECTOR COMPARISONS 3 Year Total Shareholder Returns – Year End 2015

TODAY’S RETAIL ENVIRONMENT

THE IDEAL MALL

Lifestyle & personal services

Soft and hard goods

Dining and entertainment destinations

Amenities that compel extended visits

OPPORTUNITIES

EVOLVING RETAIL ENVIRONMENT “Mall” is a 4-Letter Word

A Place for Engagement & Commerce

Then - 1998 Now

RETAIL ENVIRONMENT

Department Stores

Specialty Shops

Dining and Entertainment

RETAIL ENVIRONMENT

Department Stores

Specialty Shops

Large Format

Value cohabitating

with Full Price

RETAIL ENVIRONMENT

Department Stores

Specialty Shops

Large Format

Dining Entertainment

Fast Fashion

RETAIL ENVIRONMENT

Department Stores

Specialty Shops

Large Format

Convenience Amenities

Fast Fashion

IMPROVED EXPERIENCES

Enhancements: • Valet Parking • Upgraded Soft Seating • Children’s Play Spaces • Wi-fi & iBeacons

Event Strategy Criteria • Traffic Generators • Retailer Tie-In • Community Engagement • NOI Drivers • Unique Experiences

RETAIL ENVIRONMENT

Department Stores

Specialty Shops

Large Format

Brand Pop-Ups

Click to Bricks

Fast Fashion

HESS TRUCK

RETAIL ENVIRONMENT

Department Stores

Specialty Shops

Large Format

Fast Fashion

Brand Pop-Ups

Click to Bricks

Value cohabitating

with Full Price

CONSTANTLY EVOLVING TENANT BASE

GONE AND FORGOTTEN NEW & IMPROVED

CONSTANTLY EVOLVING TENANT BASE

PORTFOLIO OPTIMIZATION STRATEGY Strategic Planning

Invest

Redevelopment

Strategic re-tenanting

PORTFOLIO OPTIMIZATION STRATEGY The PREIT Perspective

Demographics

Anchor strength

Capital requirements

NOI growth profile

Competitive landscape

Economic Development

Joe Aristone

SVP, Leasing

STRATEGIC RE-TENANTING EFFORTS Power of market knowledge

Define the VISION Develop a STRATEGY EXECUTE

NEW BUSINESS DEVELOPMENT

Cultivating a robust pipeline of new relationships including 200 qualified leads and 31 “hot” prospects

Mission to source new-to-portfolio tenants

Top Prospects

EXPANDING RETAILERS

Department Stores Nordstrom Dillard’s Belk Primark Ross Stores Kohl’s Burlington TJ Maxx Men’s & Women Buckle Zumiez Express Lululemon Urban Outfitters Women’s Stores Chico/Soma Anthropologie Christopher & Banks Lane Bryant Victoria Secret White House/Black Market

Fast Casual Concept Zara H&M (major expansion) Men’s Apparel DXL Men’s Wearhouse Build A Bear GNC Container Store White Barn Candle Co Dicks Sporting Goods Hibbett’s Academy Sports Field & Stream Cosmetic Personal Services Bath & Body Works ULTA Sephora LUSH

Jewelry Kay Jewelers Zales Electronics Apple Gamestop Home Furnishings Restoration Hardware Home Goods La Z Boy Accessories Fossil Francesca’s Collection Michael Kors Vera Bradley Shoes DSW Famous Footwear Footlocker Johnson & Murphy Journey’s Shoe Dept Encore

Department Stores & Boxes

Men’s & Women’s

Women’s Apparel

Fast Fashion

Men’s Apparel

Specialty Retail

Accessories

Jewelry

Electronics

Home Furnishings

Sporting Goods

Cosmetics

REMERCHANDISING: Viewmont Mall Scranton, PA

• Capture underserved customer and expand dominant position in the trade area by bringing in several first-to-market tenants

• Solidify value through re-negotiated long term leases with high quality tenants

Vision

• Capitalize on lease expirations to right-size existing tenants

• Add catalyst tenants that would open only store in market Strategy

• CVS Lease expiration [9,000sf]

• Limited Superstore renegotiation [30,000sf]

• Secured new tenants

• New store prototype build-out for existing tenants

Execution

Newly Opened / Fully Executed

RESULTS

Non Anchor Occupancy

Est. NOI Growth

$442 psf (as of 11/30/15)

- Up 20% since Q1 ‘13

98.2% - Up 450 bps over 12/31/14

+20% - measured from 2014-2015

REMERCHANDISING: Moorestown Mall Moorestown, NJ

Marketing research uncovered enormous unmet demand for quality restaurant offerings which prompted successful 2011 liquor referendum and paved way for evolution of the mall

Located 5 miles from Cherry Hill Mall in a distinct, affluent immediate trade area

Multi-phase remerchandising effort centered around curated dining experiences, high-end boutique row offerings, flagship salon & spa and first-to-market entertainment experiences

Excellent real estate, serviced by NJ Route 38 and easily accessed by NJ Turnpike and Interstate 295

Experiences Boutique Row Dining

18,000+ sf H&M, to open in 2016 and will serve as additional catalyst for remerchandising

• Differentiate mall offerings by creating a dining and entertainment focus with best-of-breed local retailers

• Attract affluent customer base Vision

• Introduce high quality dining and entertainment

• Add high-end boutiques offering brand name products in boutique atmosphere

Strategy

• Attracted best-of-breed, destination dining options

• Secured only RPX theater in Philadelphia market

• Relocated award-winning salon to add to lifestyle atmosphere

• Successfully leased Boutique Row

Execution

Opportunity for Remerchandising

RESULTS

Occupancy

Est. NOI Growth

$355 psf - with expectations to exceed

$400 psf upon stabilization

87.4% Non-Anchor - Up 9% since 2011 Referendum

+40% - measured from 2011-2016 (e)

REMERCHANDISING: IN PROGRESS

Patrick Henry Mall

Valley Mall

Capital City Mall

Francis Scott Key Mall

Valley Mall

Capital City Mall

Patrick Henry Mall

REMERCHANDISING: Patrick Henry Mall Newport News, VA

THE MARKET: Population Average HHI Daytime Population

THE STORY: Located on the Hampton Roads peninsula, Patrick Henry Mall is the only enclosed mall between Richmond and Norfolk. Completely renovated in 2006 as other shopping centers opened in market, the property withstood the competition and remains the strongest retail destination in the trade area. Two area Macy’s closings will serve to strengthen the property’s market position. With several key in-demand, fashion-oriented retailers opened or opening soon, the mall is poised to capitalize on the leasing momentum as more hot national, retailers look to join.

625,655 $75,026 635,740

THE PROPERTY Sales Non-Anchor Occupancy

• Further property’s position in the market as the dominant, established retail shopping destination in the Hampton Roads market

Vision

• Attract key tenants looking to exit competitive project

• Upgrade merchandising mix with catalyst tenants that would enhance shopping experience & attract other key tenants

• Upgrade restaurant offerings

Strategy

• Backfilled former Borders store with Forever 21 at main mall entrance

• H&M – opening Q2 2016

Current Accomplishments

Targeted Retailers Newly Opened / Fully Executed

REMERCHANDISING: Valley Mall Hagerstown. MD

THE STORY: Located at the western edge of the Washington Metro area, Valley Mall is the dominant regional enclosed mall within 30 miles. The trade area has seen immense growth over the past twenty years due to improved highway accessibility to Washington DC and Baltimore coupled with lower cost of living compared to other metro suburbs. The mall also benefits from its location along the I-81 corridor, a vital north-south route. Due to the growth , the mall has evolved with an impressive lineup of restaurants and an ever improving roster of in-demand national retailers.

474,158 $68,277 $66,555

REMERCHANDISING: Valley Mall Hagerstown, MD

Vision

• Add catalyst tenants that would open only store in market

• Secure replacement for underperforming anchor tenant with new department store that better serves trade area

Strategy

• Upgrade front of mall facing Halfway Boulevard with destination restaurants

• H&M – opening Q2 2016

• Secured additional new impact tenants

REMERCHANDISING: Valley Mall Hagerstown. MD

Targeted Retailers Newly Opened / Fully Executed

REMERCHANDISING: Capital City Mall Camp Hill, PA

THE STORY: Located just eight miles from downtown Harrisburg, PA – the state capital, Capital City Mall is the dominant retail center in the region, featuring a wide array of first-to-market and exclusive retailers including DSW , The Buckle and Forever 21. A strong regional economy and location in the more desirable West Shore section of trade area puts the mall in the perfect position to capitalize on shopper demand for better brands and a differentiated experience.

531,839 $76,283 620,502

• Continue to elevate the merchandising mix to provide shoppers better fashion-oriented brands Vision

• Capitalize on available outparcel with prime visibility to major regional highway

• Build off success of DSW and Forever 21 to add catalyst tenants that would open only store in market

Strategy

• Field & Stream – Opened in Q4 2015

• H&M – Opening Q2 2016

• Discussions with several other better fashion retailers

• Discussions with restaurants for pad locations

Targeted Retailers

REMERCHANDISING: Francis Scott Key Mall Frederick. MD

THE STORY: Strategically located Washington DC bedroom community at the intersection of I-70 and I-270, Francis Scott Key Mall is perfectly situated in the expanding, upscale suburban communities of Frederick County. Along with rising populations, home values and household incomes, the trade area’s demand for better retail has grown. An upgraded merchandising mix and better restaurant offerings will keep consumers from traveling south and east to find the brands and cuisine they desire.

328,328

$103,109 289,304

REMERCHANDISING: Francis Scott Key Mall Frederick, MD

Vision

• Add catalyst tenants that would open only store in market

• Expand strong performing tenants looking for more GLA

• Create restaurant cluster Strategy

• H&M – opening in Q2 2016

• Discussions with several better fashion retailers

• Discussions with restaurants for exterior box location

REMERCHANDISING: Francis Scott Key Mall Frederick, MD

Targeted Retailers

Value City Furniture

Dick’s Sporting Goods

Mario Ventresca

EVP, Operations

Property Date Sold Sales Price (millions)

Sales psf

Gross Rent psf

Non-anchor occupancy

Cap Rate

Phillipsburg Mall Jan ’13 $ 11.5 $ 229 $26.24 66.5% 9.8%

Orlando Fashion Square Feb ’13 35.0 233 $30.78 80.7% 9.8%

Chambersburg Mall Nov ‘13 8.5 235 $19.46 76.2% n/a

South Mall Jun ‘14 23.6 227 $25.10 90.6% 10.1%

Nittany Mall Sep ‘14 32.3 243 $28.99 70.0% 16.2%

North Hanover Mall Sep ‘14 (included w/Nittany) 275 $36.06 72.8% 11.0%

Uniontown Mall Aug ‘15 23.0 282 $26.71 84.5% 17.5%

Voorhees Town Center Sep ‘15 13.4 261 $26.33 74.3% 10.3%

Total Malls $147.3

Paxton Town Centre Jan ’13 76.8 6.9%

Commons at Magnolia Sep ’13 12.3 8.9%

Christiana Center Sep ’13 75.0 6.5%

The Gallery (50% interest) Jul ’14 106.8 5.1%

Whitehall Mall Dec ’14 20.0 7.0%

Springfield Park Jul ‘15 20.2 7.0%

Other properties Various 25.3

Grand total $483.7

DISPOSITION REVIEW Optimally timed program yields results

DISPOSITION UPDATE Finalizing transactions underway solidifies mall platform

Mall Property Status Estimated Closing

Package –Gadsden, Wiregrass, New River Valley Under Contract 1H 2016

Palmer Park Mall Non refundable deposit 1H 2016

Lycoming Mall Marketing 2H 2016

Washington Crown Center Marketing 2H 2016

Non-Mall Property Status Estimated Closing

1520-22 Chestnut & 1501-05 Walnut St Negotiating Contract 1H 2016

Gainesville, FL Land Parcel Under Contract 1H 2017

Estimated Gross Proceeds: $200 - $225 million

PROGRAM IMPLEMENTATION & SUMMARY Keys to Success

Assets are accessible to the buyer pool; many within a few hours from New York City

Developed relationships with well-capitalized entrepreneurial buyers

Realistic approach to trading cap rates

PERFORMANCE PRIORIT Y

• Sales as of 9.30.14 $384

• Impact of dispositions +$7 (2%)

• Store closings resulting from bankruptcy +$11 (3%)

• Organic improvement in sales performance through concerted remerchandising efforts +$26 (7%)

• Sales psf as of 9.30.15 $428

• Impact of anticipated additional asset sales [Avg Sales psf = $297] +$20 (5%)

• Sales post Dispositions $448 • Springfield Town Center [at $525 psf]

• Fashion Outlets of Philadelphia [at $650 psf] +$29 (7%)

• Projected Portfolio Sales psf upon stabilization $477

STC and Fashion Outlets of Philadelphia are assumed to stabilize in 2018 and 2019 respectively. Assumes balance of portfolio remains static.

PATHWAY TO NOI GROWTH Sales growth drives opportunity to drive rents

ORGANIC GROWTH LEVERS Renewal Spreads

12/31/15 Avg Rent

2016 Expirations

2017 Expirations

2018 Expirations

Premier $67.60 $53.69 $52.97 $57.17

Core Growth – Major Market

$45.79 $40.05 $44.49 $42.36

Core Growth – Market Dominant

$44.13 $43.64 $49.40 $43.38

3.8 million sf of leases expiring 2016 – 2018 represent opportunity to drive $5.0-10.0 million in incremental revenue at estimated average 7% spread

ORGANIC GROWTH LEVERS Conversion to Fixed CAM provides an opportunity for margin expansion

$1.5 to $2.0 million of additional contribution from tenants with Fixed CAM leases

ORGANIC GROWTH LEVERS Opportunity to grow operating margin through Fixed CAM greater in post-disposition portfolio

(1) Calculated as CAM revenues divided by CAM Operating Expenses excluding non-cash CAM depreciation (2) Includes all malls owned during the periods presented excluding The Gallery and Springfield Town Center (3) Excludes 6 malls currently marketed for sale, Fashion Outlets of Philadelphia and Springfield Town Center

ORGANIC GROWTH LEVERS Improve Common Area Margin

$1.0 million per annum through increased revenue and expense control.

Increased Revenue Opportunities • Solar Panels • Electric Vehicle Charging • Vending

Improved Expense Control • Block & Index Energy Purchasing • Housekeeping & Maintenance • Security

ORGANIC GROWTH LEVERS Improve Common Area Margin

$1.0 million per annum increases through increased revenue and expense control.

ORGANIC GROWTH LEVERS Occupancy Gains

Each 50 bps of non-anchor occupancy at $40 psf = $1.7 million

ORGANIC GROWTH LEVERS Temp-to-Perm Conversion

Conversion of 25% of temporary tenants generates $1.3 million in annual revenue uplift

ORGANIC GROWTH LEVERS New GLA Opportunities

Every 50,000 sf of additional exterior GLA can add $1.5 million with typically strong return prospects and credit tenants.

ORGANIC GROWTH LEVERS Lease Quality – managing the details allows us to control our destiny

Qualitative lease terms:

-Co-tenancy Provisions

-Sales Kickout thresholds

-Tenant Credit

New Business Development

Merchandising Plans

Account management & scrutiny

-Review of opportunities

-Portfolio view of transactions

Transaction Approval Committee

ORGANIC GROWTH OPPORTUNITIES Summary

Improved common area margin: $1 Million

Migration to fixed CAM: $1.5 – 2 Million

Occupancy gains: $1.7 – 5.1 Million

Temp-to-perm conversion: $1.25 Million

Improved renewal spreads: $5 – 10 Million

New buildable area: $1.5 Million

Quantified opportunity to drive 3%+ annual increases in Same Store NOI= $16.4 Million

Daniel Herman

SVP, Development

EXECUTING GROWTH INITIATIVES

ACTIVE REDEVELOPMENT Stabilizing Springfield Town Center - Springfield, VA

$9-10M

Total space leased committed

Incremental NOI anticipated in 2016

40,000 sf new leases being negotiated

$6M renovation currently underway at Macy’s

$505 1st Year Sales PSF

71% of 2016 incremental leasing revenue secured

Recently opened Dave & Buster’s in 32,000 square feet. Strong sales indicate strength of location.

$9-10M

40,000 sf

ACTIVE REDEVELOPMENT Stabilizing Springfield Town Center - Springfield, VA

EST. EST.

ACTIVE REDEVELOPMENT Fashion Outlets of Philadelphia – Philadelphia, PA

(1) JV Cost

(2) Net of Grants

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 $320- $380 million (1)

Net Cost $275-$335 million (2)

Targeted Return 8%-9% Stabilized Year 2020

6,302,012

$86,507 $288,340

6,693,353

ACTIVE REDEVELOPMENT Fashion Outlets of Philadelphia – Philadelphia, PA

Public Financing Sources & Amounts

$55 million

$58 million

$13 million

$30 million

$1.5 million

$1.0 million

Commonwealth (2)

Redevelopment Assistance Capital Program (RACP)

Committed RACP

Pending RACP

Infrastructure Facilities Improvement Program (IFIP)

Multimodal Transportation Fund (MTF)

Local (1)

Public Access Easement Agreement

Tax Increment Financing TIF

TOTAL: $158.5 million

(1) Paid over time (2) Paid upon meeting grant requirements

ACTIVE REDEVELOPMENT Exton Square – Phase I

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.

Additional synergy will be created on-mall with the potential addition of a first-to-market

bowling and entertainment concept in the former JCPenney anchor box.

522,688

$109,631 $369,499

544,048

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

Anticipated Opening 2017

Anticipated Opening 2016

ACTIVE REDEVELOPMENT Plymouth Meeting Mall – Plymouth Meeting, PA

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. This addition is expected to act as a catalyst for an interior mall remerchandising.

1,008,315

$92,967 1,116,568

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

ACTIVE REDEVELOPMENT Plymouth Meeting Mall – Plymouth Meeting, PA

ACTIVE REDEVELOPMENT Cumberland Mall – Vineland, NJ

THE STORY: The spring 2015 closure of JCPenney 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 mall. In December 2015, a lease was signed with Dick’s Sporting Goods who will open a 50,000 sf store in early 2017. 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 $7.45 - $8.25 million Targeted Return 10% - 11% Stabilized Year 2017

ACTIVE REDEVELOPMENT Cumberland Mall – Vineland, NJ

ACTIVE REDEVELOPMENT Mall at Prince Georges – Hyattsville, MD

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 sheer volume of development immediately surrounding the property – over $1 billion in recent development has occurred in the trade area. A remerchandising program, highlighted by the recent H&M transaction , will attract the high-income, fashion-oriented customers that have flocked to the area.

Additional opportunities to add fast casual restaurants along the exterior of the mall will add to the density of the property and increase mall traffic.

1,514,259

$86,108 1,516,634

PROJECT DETAILS Cost $22.4 - $27 million Targeted Return 8%-9% Stabilized Year 2018

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

Cost (in millions)

Targeted Return

Stabilized Year

Fashion Outlets of Philadelphia $160-$190(1) 8% - 9% 2020

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

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

Cumberland Mall $7.45 - $8.25 10% -11% 2017

Mall at Prince Georges $24.4 - $27.0 8% - 9% 2018

ACTIVE REDEVLOPMENT PROJECTS Summary

(1) PREIT Share of Cost

Robert McCadden

SHAREHOLDER VALUE

CAPITAL ALLOCATION

BALANCE SHEET TARGETS

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

64.1% 50.4% <48% 46.5%

8.9x 8.0x <7.5x 7.1x

$267 $286 >$250 $258

9/30/12 12/31/15 (E) Post-

Redevelopment

Bank Leverage

Debt/EBITDA

Liquidity (in millions)

Year End 2018 Target

BALANCE SHEET TARGETS 3 Year Investment Horizon

BALANCE SHEET PRIORITIES

Continuous improvement of financial instrument terms

Reduce leverage

Maintain significant liquidity

BALANCE SHEET SECURITY

Refinancing efforts since 2012 have resulted in reduced interest expense of $30 million annually.

LADDERED DEBT MATURITIES

5.3 years - average time to maturity of mortgage loans

IMPROVING LIQUIDITY Amended Revolving Facility

LEAD Wells Fargo Bank NA

SIZE $400 million

ACCORDIAN $200 million

PRICING 120 – 155 bps over LIBOR

MATURITY 2018; with options to 2020

AVAILABILTY 11% debt yield on unencumbered pool NOI

MATURITY

AVAILABILITY

PRICING

ACCORDIAN

UNENCUMBERED POOL

IMPROVING LEVERAGE Bank leverage is significantly reduced and expected to fall to high-40s

CAPITAL PLAN 3 Year Investment Horizon

(1) Liabilities-to-GAV per bank credit facility (after adjustment for STC valuation) (2) Total Debt exc. Cash/Trailing 4Q EBITDA (3) Credit facility availability less LOC plus available cash (after payoff of $79M loan on Valley Mall Q1 16)

50.4% 8.0x $286

3.0%/yr (280 bps) (.6x) $19

$200-$225M (80 bps) (.1x) $140

$145-$155M (210 bps) (.3x) $66

$250-$300M 640 bps 1.1x ($275)

~8.25% return (320 bps) (.7x) $22

$20M/yr (140 bps) (.3x) -

46.5% 7.1x $258

<48% <7.5x >$250

Bank Leverage (1) Debt/EBITDA (2) Liquidity (in millions) (3)

12/31/15 (E)

Target

Baseline NOI Growth

Sale of JV Power Centers

Redevelopment Capital

Redevelopment NOI

Debt Amortization

Post-Redevelopment

Sale of Marketed Assets

Estimate

SOURCES & USES OF CAPITAL Preliminary View

(1) Assumes that FFO is sufficient to cover dividends, recurring capital expenditures, normal tenant allowances and principal payments on debt.

Sources 2016 2017 2018

FFO(1) --- --- ---

Proceeds from asset sales ($345-$380M) $ 325 $ 20 n/a

Proceeds from mortgage loans 160 190 n/a

Other loan (at ownership share) 25 25 n/a

Total sources $510 $235 $ --

Mortgage loan repayments (220) (218) ---

Mortgages repaid from sale proceeds / assumed (142) --- ---

Redevelopment CapEx ($250-$300M) (125) (110) (65)

Total uses (487) (328) (65)

Net source (use) $ 23 $(93) $(65)

BALANCE SHEET PILLARS Focus on continued improvement

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 any disruption in credit markets

We have limited exposure to variable interest rates

2016 OUTLOOK

2016 OUTLOOK Focus on continued improvement

• Targeted same store NOI growth of 3%

• 80 -100bps increase in same store non-anchor occupancy

• All anchor replacements accounted

• Gallery / FOP redevelopment begins

Material Operating Assumptions

• Six malls and street retail properties sold mid-year

• Power Center portfolio sold at the end of 2016

• Land parcel sold in 2017

• Annualized dilution from assumed mall and street retail dispositions is $0.25 per share; 2016 impact is approx. $0.12 to $0.13 per share.

Asset Disposition Assumptions

• Addresses upcoming mortgage maturities

• Refinance mortgage at Woodland Mall; repay Valley loan

• Finalize EB-5 loan for FOP

• Use proceeds from asset sales & borrowings to fund redevelopment expenditures

Capital Plan

• None Planned Asset Acquisitions

2016-2018 CAPITAL SPENDING Focus on continued improvement

Redevelopment CAPEX: $250 -$300 million over

3 years

• Fashion Outlets of Philadelphia - $150 million

• Exton Square - Whole Foods & JCPenney replacement - $32 million

• Mall at Prince Georges - $25 million

• Other projects, anchor replacements and catalyst tenants such as LEGOLAND and H&M - $45 to $95

2016-2018 CAPITAL OUTLAYS Includes redevelopment and recurring capital expenditures

$250 to $300 million of redevelopment capital spending over the next three years

In millions, except per share amounts 2016 Guidance

NOI from 2016 Same Store Properties (1) $ 231-233

NOI from properties for sale (2) 20-22

NOI from Springfield Town Center and Gloucester 22-24

NOI from Fashion Outlets of Philadelphia 4

Total NOI $ 277 - $283

Other revenues/expenses, net (33-34)

Interest expense (84-85)

Preferred dividends (16)

FFO $ 143 - $149

FFO/share $1.83 - $1.91

Wtd average shares & equivalents 78

2016 EARNINGS GUIDANCE Preliminary View

143 (1) Includes 23 malls identified in premier, core growth – major markets, core growth – market dominant categories (2) Includes 6 non-core malls, 2 street-level properties and our interest in 3 power centers

In millions, except per share amounts 2016 Guidance

FFO $ 143 - $149

Depreciation and amortization (139 – 142)

Non-controlling interest (2-3)

Net income allocable to common shareholders $ 2 - $4

Net income per share $0.03 - $0.06

Weighted average shares and equivalents 69

RECONCILIATION TO GAAP EARNINGS Preliminary View

NOI GROWTH Projected through 2018

NOI grows to $300 million by 2018, after asset dispositions

Joseph F. Coradino

FUTURE GROWTH OPPORTUNITIES Cherry Hill Mall - Fashion Anchor Addition

Remerchandising of existing anchor with fashion department

Addition of new upscale fashion anchors along with the repurposing of One Cherry Hill office building

FUTURE GROWTH OPPORTUNITIES Exton Square Mall Phase II

Additional retail and restaurant development and interior remerchandising

FUTURE GROWTH OPPORTUNITIES Springfield Town Center Peripheral Land

Development of 3 million sf of entitled peripheral land with office, multi-family, hotel and additional retail

FUTURE GROWTH OPPORTUNITIES Fashion Outlets of Philadelphia Overbuild

Vertical development at site with the addition of hotel, multi-family and/or office

FUTURE GROWTH OPPORTUNITIES Woodland Mall Redevelopment

Fashion anchor addition along with new GLA for restaurants and exterior facing retail

FUTURE GROWTH OPPORTUNITIES Plymouth Meeting Mall Master Plan

Development of PA Turnpike and former office parcel into hotel and potential flagship office space

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