PREIT: Current Value Proposition

2

Quality Real Estate in Strong Markets

Low Unemployment

Strong Retail Sales Environment

Embracing Differentiated Tenant Base

Department Store Risk Mitigated

Path to Reducing Leverage

Densification Opportunities

Ahead of the Curve in Improving Environment

3

low-productivity mall disposition

higher quality portfolio

anchor replacement diversified

tenant mix

Sales Same Store NOI growth

reducing leverage

Becoming Modern-Day PREIT

4

Superior Demographics

5

6

Diversified Tenant Base

Fast Fashion & Off Price

Retail Incubation/Emerging Brands

Dining

Entertainment

Fitness & Recreation

Focus on Experiences

7

Focus on Dining

8

Focus on Convenience & Community

9

Completed Anchor Enhancements

10

8x

3x

$22 million

>25 tenants

12

11

Anchor Replacement Statistics

• Average New Rents Generated from Boxes

• Sales Multiple Generated from new Tenants

• Average Investment

• Replacing 12 Department Stores since 2017

• Boxes Replaced

Anchor Replacement Success Stories

12

Anchor Replacement Program

13

Sears exposure as a differentiator

14

0 10 20 30 40 50 60 70

Balance Sheet Strategy

WELL-LADDERED DEBT MATURITIES

•

•

MINIMAL EXPOSURE TO FLOATING RATE DEBT

•

SUFFICIENT LIQUIDITY BEYOND COMMITTED CAPITAL NEEDS

•

STRONG DIVIDEND COVERAGE

•

•

MAINTAIN DIVERSE DEBT SOURCES

15

Liquidity and Spending Vitals

LIQUIDITY as of 6.30.18

PROCEEDS FROM REMAINING NON-CORE SALES

REMAINING SPENDING

•

•

•

•

16

$700 million

Unchanged

4.9 years

4.06%

92% Fixed

17

Key Balance Sheet Facts

• Recast of $400 million credit facility and $300 million term loan complete

• Cap Rates and Interest rate spreads

• Average loan maturity incl. extension options

• Average cost of debt (as of 6/30/18)

• Only 8% of debt subject to fluctuation in rising rate environment

18

•

•

•

Well-Laddered Debt Maturities

$0

$100

$200

$300

$400

$500

$600

$700

$800

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Redevelopment Appendix

19

Redevelopment & Anchor Repositioning Strategy

20

•

•

•

•

•

Viewmont Mall

21

Capital City Mall

22

Capital City Mall

23

Magnolia Mall

24

Valley Mall Anchor Enhancement: Fashion, Fitness, Food, Fun

25

Redevelopment

Opportunity

Mall at Prince Georges: MPG

26

MPG: Renovation

27

MPG: Introducing New Brands

28

Plymouth Meeting Redevelopment

29

Woodland Mall

30

Woodland Mall

31

Fashion District Philadelphia

32

Fashion District Philadelphia

Style

33

Dining

Entertainment

Fashion District Philadelphia

34

Future Growth Opportunity

35

The Strategy

36

Geography

37

Forward Looking Statement

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