The five wholly-owned properties are Creekview Center in Warrington, Pennsylvania; Monroe Marketplace in Selinsgrove, Pennsylvania; New River Valley Center in Christiansburg, Virginia; Pitney Road Plaza in Lancaster, Pennsylvania; and Sunrise Plaza in Forked River, New Jersey. The properties contain an aggregate of approximately 1.5 million square feet of space, of which the Company owned approximately 0.9 million square feet of space.

After the repayment of mortgages secured by three of these properties totaling $39.9 million and the payment of the release prices of the other two properties that secured a portion of the Company's secured credit facility (the "2010 Credit Facility"), which total $57.4 million, PREIT Associates, L.P. used $10.0 million to repay borrowings under the Revolving Facility and $8.9 million to repay borrowings under the 2010 Term Loan, both in accordance with the terms of the 2010 Credit Facility. The Company expects to use the remaining $18.5 million of the proceeds for general corporate purposes. Following the repayments of these borrowings under the 2010 Credit Facility, the Term Loan has a remaining balance of $347.2 million and the $150 million Revolving Facility currently has no outstanding balance.

The Company expects to recognize an aggregate gain on sale from the disposition of these properties of approximately $19 million in the quarter ended September 30, 2010. This gain will not be included in the calculation of Funds From Operations ("FFO"). In connection with the reduction of the outstanding balance of the 2010 Term Loan and the repayment of the mortgage loans on the other properties, the Company will record $1.5 million of accelerated amortization of deferred financing costs.

The Company retained certain undeveloped parcels at the properties, which the Buyer will have the option to acquire at a price determined by an agreed formula if the parcel is leased within the first two years following the closing date. If the Company seeks to sell an undeveloped parcel or a developed parcel as to which the Buyer's option has expired, the Buyer will have certain rights to acquire the parcel. A subsidiary of the Company will serve as management and leasing agent for all of the properties for a period of three years, subject to certain termination rights of the Buyer after one year upon payment of a specified amount. If space at these properties that is vacant on the closing date is leased in the first two years after the closing date, the Company will receive an addition to the sales price for leasing such vacant space, subject to certain terms and conditions.

As previously disclosed in a Current Report on Form 8-K dated August 13, 2010, the Company also entered into two additional Purchase and Sale Agreements with the Buyer to sell the Company's 50% interest in each of two other power center properties, Red Rose Commons in Lancaster, Pennsylvania and Whitehall Mall in Allentown, Pennsylvania. There are conditions to each of these proposed dispositions, including conditions involving the partners in the ownership of these properties, that might delay or prevent the closing of the sale of either or both of these properties. The Buyer is not obligated to close on the purchase of either of these two properties unless it will acquire 100% ownership of that property.   

Forward Looking Statements