INVESTOR UPDATE M AY 2 0 1 7 1 PREIT: Company Overview

Strong market position with quality properties concentrated in mid-Atlantic’s top MSAs

23 million square feet dedicated to retail, dining and entertainment with an increasingly strong and diversified anchor mix

Early-mover advantage in rapidly-changing retail environment has created differentiated platform

Small scale creates outsized growth opportunities through: • Redevelopment and remerchandising • Anchor transformation • Densification

2 Geography

PHILADELPHIA WASHINGTON DC

Valley Mall

Francis Scott Key Mall Willow Grove Park

Plymouth Meeting Mall

Exton Square Mall Fashion Outlets Moorestown Mall Springfield Mall Cherry Hill Mall

Mall at Prince Georges Gloucester Premium Outlets

Cumberland Mall Springfield Town Center

PREIT’s portfolio is primarily located along the east coast with a concentration in the mid-Atlantic’s top MSA’s - Philadelphia and Washington DC.

3 Successful Transformation

• Concentrated portfolio in densely populated, high barrier-to-entry markets CREATED A FOCUSED MARKET • Focused on high-quality, well-located assets in Top MSAs STRATEGY • 40% of NOI generated from Top 5 assets with sales PSF of $588

• Significantly reduced risk profile through strategic disposition program • $720 million raised OPTIMIZED PORTFOLIO • Sold 16 low-productivity malls with 2 more coming to market • Capitalizing on opportunities to improve quality through remerchandising and redevelopment

• Lifestyle Experience: ~20% of space committed to dining & entertainment REVITALIZING CORE ASSETS TO • Department Store Strategy: Proactively replace challenged department stores to craft desired shopping experience CAPITALIZE ON RAPIDLY CHANGING • Diversified Tenant Mix: Over 1 million square feet of space added in dining, LANDSCAPE entertainment, fast fashion, grocery, health & wellness and off-price categories

• Liquidity; $400 million credit facility with no amounts outstanding • Laddered Maturities IMPROVED BALANCE SHEET • Minimal exposure to floating rate debt • Plans to reduce leverage below 47% by 2020 • Roadmap to lower leverage through NOI growth and asset sales

• Independent sales projection reflects stabilized portfolio reaching $528 psf in ACHIEVED OPERATIONAL 2019 (without Fashion Outlets Philadelphia) EXCELLENCE • Multi-year plan reflects average NOI growth of 6-8% over 4 years

PREIT HAS A TRACK RECORD OF SUCCESSFULLY EXECUTING ON KEY INITIATIVES, TRANSFORMING THE COMPANY AND IMPROVING THE QUALITY OF OUR PORTFOLIO. 4 Transformation: By The Numbers

2012 2017 Beyond 2018 # of Properties 46 26 24

# of States 13 9 8

# of Markets 20 12 10

Total GLA 33 million 23 million 22 million

Portfolio Sales/SF $365 $465 $538

Assets > $500/SF 3 5 >10

% of NOI from assets with sales 20% 39% 57% > $500 PSF

5 Strategic Vision

CONTINUE TRANSFORMATION INTO A TOP - TIER MALL REIT THROUGH PORTFOLIO OPTIMIZATION, A DIVERSIFIED TENANT MIX THAT DRIVES TRAFFIC AND SALES AND A STRONG BALANCE SHEET CAPABLE OF CAPITALIZING ON OPPORTUNITIES TO CREATE VALUE

• Strategic Investment and Expansion in Attractive Markets

• Employing a Consumer-Driven Approach to Tenant Mix

• Capitalizing on Shifting Consumer Shopping Behaviors by Anticipating Trends

• Deliver Operating Results that Reflect the Quality of the Portfolio

• Expedite Capital Plan to maximize liquidity and reduce leverage so we can continue to capitalize on value-enhancing opportunities

6 A Differentiated Platform

OUR PLATFORM IS DISTINCTLY DIFFERENT FROM HISTORIC “LOWER PRODUCTIVITY” PEER SET • Insulated Portfolio creates stability • Small scale results in manageable impact from retail fallout • Opportunity for outsized growth upon execution of redevelopment program • Strategic and growing position in Top 10 Markets - Philadelphia and Washington DC • Limited absolute exposure to Sears through proactive replacement effort

WPG Sears exposure

(post disposition) CBL

PEI

0 20 40 60

• Portfolio Sales productivity exceeds “Low Productivity” Peers 7

2019 Sales Projection

• Current Portfolio (3/31/17)

• Excluding Asset Offered for Sale

• Estimated Stabilized Portfolio Sales:

• Fashion Outlets Philadelphia:

• Total Portfolio Sales:

Source: Gerney Research study dated 5.18.17 .

8 Retail Industry Outlook

• Department Store Rationalization • Necessary; replacements are a net positive • Strong demand demonstrated • Capital is required, but returns are strong • Specialty Retailer Bankruptcies • 2017 Bankruptcies: 9 retailers impacting 50 locations in PREIT portfolio • Strong history of replacements: 75% of 2016 – 2017 spaces covered • Minimal Occupancy impact • Growing number of uses insulates us from shifts in apparel spending • Blurring of lines between retail formats • Best locations wins • Built in traffic is compelling for traditionally off-mall players • The best retail experience will blend full and off-price, fast fashion, specialty boxes, dining, entertainment, health and wellness…under one roof

9 Balanced Department Store Risk

December 31, 2011 Pro-forma (1)

Bon Ton 12 1 Boscov’s 9 6 Burlington 6 3 Century 21 Dept Stores -- 1 DICK’s Sporting Goods 2 5 Dillard’s 3 1 Gander Mountain (BK) 1 -- JC Penney 29 16 Sears/K Mart 27 7 (PRIMARK occupies ¾ of Willow Grove location) Macy’s 24 15 Nordstrom/Rack 1 3 Round 1 Entertainment -- 1 Saks OFF 5th -- 2 Target 2 3 TJX 3 8 Von Maur -- 1 Whole Foods 1 2

(1) Includes executed leases and transactions in progress that haven’t taken occupancy and excludes 10 announced disposition properties Track Record of Replacing Tenants

PREIT’S RELATIVELY SMALL PORTFOLIO, LOCATED IN HIGH QUALITY MARKETS, IS PROTECTED FROM MATERIAL IMPACT RELATED TO RETAILER FALLOUT.

GLA impacted % Covered 2016 Bankruptcies 236,394 70% 2017 YTD Bankruptcies 295,331 80% Total 531,725 76%

For tenants that filed for Bankruptcy protection in 2017, PREIT currently expects only 20 stores to close within its portfolio

11 Expanding Retailers

TENANTS HAVE BECOME AGNOSTIC TO RETAIL FORMAT AND ARE FOCUSED ON LOCATION AND POSITIONING ABOVE ALL ELSE

Performing Mall Retailers

Fast Fashion

Shoes/Athletic Shoes

Off-Price / Value 12 Expanding Retailers - continued

TENANTS HAVE BECOME AGNOSTIC TO RETAIL FORMAT AND ARE FOCUSED ON LOCATION AND POSITIONING ABOVE ALL ELSE

Grocery

Fitness

Big Box

Entertainment

Dining 13 New-to-Portfolio Tenants

PREIT HAS PRIORITIZED DIVERSIFYING OUR TENANT MIX. WE HAVE 82 MEETINGS WITH NEW TO PORTFOLIO TENANTS AT ICSC RECON.

• Fashion - 15 • Experiential / Entertainment - 8 • Jewelry & Accessories - 5 • Home Décor - 7 • Fast Casual Dining - 17 • Full Service Dining - 8 • Grocery & Organic Markets - 2 • Specialty Food Retailers – 10 • Fitness - 3 • Online Retailers – 2 • Other - 5

14 Investing in Top US Markets with Attractive Growth Opportunities

• Philadelphia • 2nd Largest Metropolis on East Coast • PREIT is a dominant mall landlord in this key market, 6th largest in the county, boasting: • 1 of 2 Bloomingdales stores in the region • 1 of 2 Nordstrom stores in the region • 1 of 2 PRIMARK stores in region • Only LEGOLAND Discovery Center in the region • Ranks #1 for millenial population growth since 2005 • Current projects and densification efforts underway: • Fashion Outlets Philadelphia • Plymouth Meeting • Exton Square • Moorestown

• Washington DC • 7th largest city in US • PREIT owns 25% of the malls in the region anchored by Springfield Town Center, located in Fairfax County. • Investments being made to Mall at Prince Georges and Valley Mall will strengthen our base in this market • Strong densification and mixed use opportunities at Mall at Prince Georges and Springfield Town Center

15 Anchor Replacement Track Record

Property Tenant Size Status/Description (SF) Opened 10/16 in former JC Penney store Cumberland Mall DICK’S Sporting Goods 50,000 location Willow Grove Park Primark 80,000 Opened 7/16 in portion of Sears store Home Goods, 23,000 Under construction for Q4 2017 opening Viewmont Mall DICK’s Sporting Goods and Field & 90,000 in former Sears store Stream Exton Square Round 1 Entertainment 58,000 Opened 12/16 in former JC Penney store

Under construction for 2017 opening Exton Square Whole Foods Market 55,000 replacing K Mart Lease Executed for Q4 17 opening Capital City Mall DICK’s Sporting Goods 50,000 replacing Sears Lease Executed for Q4 19 opening Woodland Mall Von Maur 90,000 replacing Sears Lease Executed for Q4 17 opening Magnolia Mall Burlington 50,000 replacing Sears

9 ANCHOR LOCATIONS IN TRANSITION IN PORTFOLIO 7 REPLACEMENT TENANTS ARE UNDER CONSTRUCTION 5 NEW ANCHORS WILL BE PAYING RENT BEFORE THE END OF 2017

16 Review of Additional Anchor Risk

PREIT HAS CAREFULLY REVIEWED ALL ANCHORS IN THE PORTFOLIO TO ASSESS RISK OF ADDITIONAL CLOSURES

Tenant Internal Risk Assessment

JC Penney • 2 locations potentially at risk Macy’s • None with near term risk • Sell 1 Bon-Ton • Close 1 • 1 Remaining • Sell 2 Sears • Proactively recapture 2 • 5 Remaining

17 Redevelopment & Anchor Repositioning Strategy

PREIT IS FOCUSED ON INVESTING IN EXISTING ASSETS IN STRONG, GROWING MARKETS WHERE LONG - TERM ASSET VALUE CAN BE ENHANCED, RATHER THAN SIMPLY PRESERVED.

• Proactively identify market-position improvement opportunities including: Anchor replacement, remerchandising, renovation, densification and physical reconfiguration to maximize use of the location

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

• Targeted returns of 200-300 bps over trading cap rate

• Minimum leasing thresholds required before commitment is finalized

18 Redevelopment Underway

Project Description

Complete overhaul of former Gallery mall stretching 3 blocks in downtown Fashion Outlets of Philadelphia. Project will offer a fusion of outlet, popular flagship retail, Philadelphia destination dining experiences and entertainment offerings. Opening in 2018. Located in Chester County, the wealthiest and fastest growing in PA, the property will see an increase in traffic with the addition of a Whole Foods Exton Square Mall Market and family entertainment destination, Round 1 which opened in December 2016. Capitalizing on the over 90 million cars passing the center every year and expanding the mall’s trade area, the addition of LEGOLAND Discovery Center in Spring 2017 will complement an already unique experience that Plymouth Meeting Mall combines great shopping with destination entertainment, high quality dining and a gourmet grocer. The Macy’s recapture will create an opportunity to expand the plaza shops and add destination retail. Just 2 miles from the University of Maryland and minutes from Washington DC, The Mall at Prince Georges is strengthened by $1 billion in development in the immediate trade area. A remerchandising program is Mall at Prince Georges underway, highlighted by H&M, DSW and 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. Opening in 2017.

19 Redevelopment Underway Proactive Anchor Rationalization

Project Description

SEARS RECAPTURES

Sears store will be replaced by Dick’s Sporting Goods, Field & Stream and Viewmont Mall HomeGoods in 2017.

Replace Sears with combination of DICK’s Sporting Goods in 2017 and 2-3 Capital City Mall medium boxes in 2018.

Magnolia Mall Replace Sears with Burlington in 2017 and two medium boxes in 2018.

Replace Sears with Von Maur, a high-end department store, expanded in- Woodland Mall line space and new dining offerings. Opening in 2019.

MACY’S REPLACEMENTS

Replace Macy’s with combination of large format boxes and extend dining Plymouth Meeting Mall and lifestyle component.

Replace Macy’s with combination of first-to-market large format boxes Moorestown Mall and a grocer.

Valley View Mall Replace Macy’s with Herberger’s. Opening 2017.

Replace Macy’s (closed 2016) with fashion department store and Valley Mall collection of off-price retail.

20 Our Strategy at Work: Fashion Outlets Philadelphia –Transformation THE STORY: Spanning 4 city blocks, the Fashion Outlets Philadelphia will represent a unique metropolitan experience blending flagship and outlet 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.

STATUS: Opening: 2018 Stabilization: 2020 Incremental Cost: $153-$183 million Incremental Return: 8-9% Leasing Status: 70% of space executed or committed

21 Our Strategy at Work: Fashion Outlets Philadelphia –Transformation

22 Our Strategy at Work: Springfield Town Center - Densification THE STORY: PREIT acquired Springfield Town Center in 2015, following its successful full-scale remodel. Along with the mall, PREIT acquired the ability to add over 3 million square feet of mixed use to the periphery. With the property marching toward stabilization, over 90% occupied and growing sales, we look toward the future of this mixed-use opportunity that will add tremendous value.

STATUS: Planning

23 Our Strategy at Work: Viewmont Mall – Anchor Transformation THE STORY: Viewmont Mall has recently been a focus in PREIT's remerchandising strategy. Viewmont's tenancy upgrade cemented its position as the dominant shopping and recreational destination in the Scranton/Wilkes-Barre region. The addition of Ulta, Buffalo Wild Wings, Forever 21 and Yankee Candle along with new prototype store for a majority of key, national retailers, set the stage for a second phase of redevelopment. A proactive recapture of the Sears space has paved the way for a new combination Dick’s Sporting Goods / Field & Stream store accompanied by HomeGoods, all opening in Fall 2017, adding to the mall’s impressive line up of destination, traffic driving tenants.

STATUS: Opening: 2017 Stabilization: 2018 Incremental Cost: $21-$22 million Incremental Return: 8-9% Leasing Status: Anchors under construction

24 Our Strategy at Work: Mall at Prince Georges - Remerchandising 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.

STATUS: Opening: 2017-2018 Stabilization: 2019 Project Cost: $30-31 million Incremental Return: 8-9% Leasing Status: DSW/ULTA executed for ’18 openings Small shop leasing 80% 4 Fast Casual leases being negotiated

25 Balance Sheet Strategy

OUR GOAL IS TO MAINTAIN FLEXIBILITY TO CAPITALIZE ON OPPORTUNITIES AND ENSURE STABILITY DURING CHALLENGING TIMES

• Well-laddered maturities

• Only one significant maturity between now and July 2020

• Minimal Exposure to floating rate debt

• 96% of debt is fixed or swapped to fixed

• Sufficient liquidity beyond programmed capital needs

• No amounts currently outstanding under $400 million credit facility

26 Addressing Capital Plan & Liquidity 2017 - 2020

Values (millions)

Committed Redevelopment Spend remaining $237-$284

Capital Reserve for Unspecified Projects $100-$125

Total Redevelopment Spend $337-$409

Non-Operating Asset Sales $25-$27 Densification/Air Rights Sales $15-$18 Sale of Interests in Operating Assets $125-$200 Financings – Construction Loans & Excess Proceeds on $175 - $250 Mortgage Refinancings

Range of Potential Future Sources $340 - $495

Surplus $3-$86

Credit Facility Capacity $400

Liquidity $403-$486

27 Redevelopment Spend Forecast

Incurred Remaining to Spend (1) Property To Date Low High Fashion Outlets of Philadelphia $67.5 $85.0 $115.0

Mall at Prince Georges 5.4 24.6 25.6

Sears replacements

Woodland Mall 28.9 77.1 85.1

Capital City Mall 6.6 21.4 23.4

Viewmont Mall 10.1 10.9 11.9

Magnolia Mall 1.5 13.5 17.5

Macy's replacements

Valley View Mall 0.3 3.2 3.7

Other remerchandising

Exton Mall 28.9 0.1 0.1

Plymouth Meeting Mall 5.3 1.7 1.7

Total Committed Redevelopment Spend 237.5 284.0 Reserve for Unspecified Projects 100.0 125.0 Total Redevelopment Spending $154.5 $337.5 $409.0

(1) At PREIT's estimated share. Amounts shown are net of any expected tenant reimbursements, parcel sales, tax credits or other incentives. 28 Redevelopment Spend Timing

Projected Spending Period (1) Property 2017 2018 2019 2020 Fashion Outlets of Philadelphia Mall at Prince Georges Sears replacements Woodland Mall Capital City Mall Viewmont Mall Magnolia Mall Macy's replacements Moorestown Mall Plymouth Meeting Mall Valley Mall Valley View Mall Other Exton Mall Plymouth Meeting Mall Other Total $130-$150 $160-$180 $70-$90 $17-$21

(1) Range of spending forecasted for future periods. Mid-point of annual range sums to high end of the remaining to spend column on page 28. 29 Sources of Funds

Range of Anticipated Proceeds Completion (millions) (1)

Non-Operating Asset Sales $25-$27 2H 17- 18

Densification/Air Rights Sales $15-$18 2H 17 – 1H 18

Sale of Interests in Operating Assets $125-$200 2H 17 – 1H 18

Financings – Construction Loans & Excess Proceeds on Mortgage Refinancings $175 - $250 Q4 17- Q1 20

Range of Potential Future Sources $340 - $495

(1)From March 31, 2017; excludes proceeds from asset sales completed in January as well as Series C Preferred Shares issued in January.

30 Status of Capital Raising Initiatives

Initiative Status

Non-Operating Asset Sales • Maturing Interest on land parcels in Chester County ,PA and Gainesville, FL.

Densification/Air Rights Sales • Negotiating Agreement of Sale for Air Rights at FOP • Offers received for land sale for multi-family addition at Exton Square • Refining agreement and pursuing entitlements for Extended Stay hotel at Plymouth Meeting

Sale of Interests in Operating Assets • Offering Logan Valley and Valley View Malls for sale • Marketing interest in several medium-high quality malls through 3rd party broker • Negotiating Agreement of Sale to sell non-core office space

Financings – Construction Loans & Excess • Discussions underway for Phase I Construction Loan on FOP Proceeds on Mortgage Refinancings • Additional proceeds for Viewmont Mall following completion of Sears replacement

31 Well-Laddered Debt Maturities

$500

$400

$300

$200

$100

$0 2017 2018 2019 2020 2021 2022 Mortgage Loans Term Loans Credit Facility

• Maturities shown reflect available extension options. • No amounts are currently outstanding under $400M Credit Facility, which can be extended until June 2020.

32 Key Investment Highlights

• Concentrated portfolio in densely populated, high barrier-to-entry markets

• Capitalizing on opportunities to improve quality through remerchandising and

redevelopment

• Diversified Tenant Mix: Over 1 million square feet of space added in dining,

entertainment, fast fashion, grocery, health & wellness and off-price categories

• Insulated Portfolio creates stability and opportunity for outsized growth

• Limited absolute exposure to Sears through proactive replacement effort

• Sufficient liquidity to manage existing projects as well as potential future

department store closures

33 Forward Looking Statement

This presentation, together with other statements and information publicly disseminated by us, contain 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. When used, the words “anticipate,” “believe,” “estimate,” “target,” “goal,” ”expect,” “intend.” “may,” “plan,” “project,” “result,” “should,” “will,” and similar expressions, which do not relate solely to historical matters, are intended to identify forward looking statements. We caution investors that any forward looking statements presented in this presentation and the documents that we may incorporate by reference into this document are based on management’s beliefs and assumptions made by, and currently available to management. 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:

Changes in the retail and real estate industries, including consolidation and store closings, particularly among anchor tenants; 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; increases in operating costs that cannot be passed on to tenants; current economic conditions and the state of employment growth and 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; the effects of online shopping and other uses of technology on our retail tenants; risks related to our development and redevelopment activities; acts of violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales; 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 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; changes to our corporate management team and any resulting modifications to our business strategies; our ability to sell properties that we seek to dispose of or our ability to obtain prices we seek; 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; our substantial debt and liquidation preference of our preferred shares and our high leverage ratio; constraining leverage, unencumbered debt yield, interest and tangible net worth covenants under our principal credit agreements; our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; our ability to raise capital, including through joint ventures or other partnerships, through sales of properties or interests in properties, through the issuance of equity or equity-related securities if market conditions are favorable, or through other actions; our short- and long-term liquidity position; potential dilution from any capital raising transactions or other equity issuances; and general economic, financial and political conditions, including credit and capital market conditions, changes in interest rates or unemployment.

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 herein and in our Annual Report on Form 10-K for the year ended December 31, 2016 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. Capital Plan

Assumption Bank Leverage (1) Debt/EBITDA (2) Liquidity (in millions) (3) December 31, 2016 (4) 47.3% 7.3x $352 Baseline NOI Growth 2.75-3.0%/yr (440 bps) (0.8x) $28 Redevelopment Capital $450M 1,170 bps 1.9x ($450) NOI from Redevelopments 7-10% return (540 bps) (1.0x) $36 Asset Sales Non-core (350 bps) (0.7x) $151

Financing proceeds -- -- $260

Debt Amortization $20M/yr (210 bps) (0.3x) -

Call Series A Preferred $115M 290 bps 0.5x ($115)

Additional Capacity -- -- $141

Post-Redevelopment 46.5% 6.9x $403

Target < 47.0% < 7.0x > $250

(1) Liabilities-to-GAV per bank credit facility (2) Debt less Cash/Trailing 4Q EBITDA (3) Credit facility availability less LOC plus available cash (4) Adjusted to reflect sale of Beaver Valley Mall and Crossroads Mall and Issuance of Series C preferred Shares in January 2017. 35