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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) December 2, 1997
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Pennsylvania Real Estate Investment Trust
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(Exact Name of Registrant as Specified in Charter)
Pennsylvania 1-6300 23-6216339
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
455 Pennsylvania Avenue, Suite 135, Ft. Washington, Pennsylvania 19034
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(Address of Principal Executive Office (Zip Code)
Registrant's telephone number, including area code (215) 542-9250
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(Former Name or Former Address, if Changed Since Last Report)
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Item 7. Financial Statements and Exhibits.
(a) Financial Statements of Businesses Acquired.
None.
(b) Pro Forma Financial Information.
None.
(c) Exhibits.
8.1 Opinion, dated December 2, 1997, of Drinker Biddle & Reath
LLP, with respect to Registration Statement 33-61115.
12.1 Calculation of Ratio of Earnings to Fixed Charges.
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Pennsylvania Real Estate Investment Trust
Date: December 2, 1997
/s/ Dante J. Massimini
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Dante J. Massimini
Senior Vice President-Finance and
Treasurer
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EXHIBIT INDEX
Exhibit No. Description Page
8.1 Opinion, dated December 2, 1997, of Drinker
Biddle & Reath LLP, with respect to Registration
Statement 33-61115.
12.1 Calculation of Ratio of Earnings to Fixed
Charges.
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Exhibit 8.1
[Letterhead of Drinker Biddle & Reath LLP]
December 2, 1997
Pennsylvania Real Estate Investment Trust
455 Pennsylvania Avenue, Suite 135
Fort Washington, PA 19034
Ladies and Gentlemen:
You have requested our opinion concerning certain federal
income tax matters in connection with the preparation of a Prospectus and
Prospectus Supplements for Pennsylvania Real Estate Investment Trust (the
"Company"), a Pennsylvania business trust, with respect to the offering and
sale of shares of beneficial interest in the Company pursuant to a Registration
Statement Form S-3 (No. 33-61115). Terms used herein and not otherwise defined
are as defined in the Prospectus and Prospectus Supplements.
This opinion is based, in part, on various assumptions and
the representations made by you as to factual matters set forth in the
Prospectus and Prospectus Supplements and in a letter delivered to us by you
today. This opinion is also based upon the Internal Revenue Code of 1986 as
amended (the "Code"), Treasury Regulations promulgated thereunder and existing
administrative and judicial interpretations thereof, all as they exist as of
the date of this letter. All of the foregoing statutes, regulations and
interpretations are subject to change, in some circumstances with retroactive
effect. Any changes to the foregoing authorities might result in modifications
of our opinions contained herein.
Based on the foregoing, we are of the opinion that:
1. For all years as to which the Company's tax returns
remain open for adjustment by the Internal Revenue Service, the Company has
been organized in conformity with the requirements for qualification as a
"real estate investment trust" under the Code, and the Company's method of
operation, as described in the representations referred to above, has been
such as to enable it to meet, and to continue to meet, the requirements for
qualification and taxation as a "real estate investment trust" under the Code.
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2. The statements in the Prospectus set forth under the
caption "Federal Income Tax Considerations," to the extent such statements
constitute matters of law, summaries of legal matters or legal conclusions,
have been reviewed by us and are accurate in all material respects.
We express no opinion with respect to the transactions
described in the Prospectus and Prospectus Supplements other than those
expressly set forth herein. This opinion represents our best legal judgement,
but it has no binding effect or official status of any kind, and no assurance
can be given that contrary positions may not be taken by the Internal Revenue
Service or a court.
We hereby consent to the filing of this opinion with the
Securities and Exchange Commission and to the references to our firm in the
Prospectus under the captions "Federal Income Tax Considerations and "Legal
Matters." This does not constitute a consent under Section 7 of the Securities
Act of 1933, and in so consenting we have not certified any part of the
Prospectus and Prospectus Supplements and do not otherwise come within the
categories of persons whose consent is required under Section 7 or under the
rules and regulations of the Securities and Exchange Commission issued
thereunder.
Very truly yours,
DRINKER BIDDLE & REATH LLP
SDDH:EMM
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Exhibit 12.1
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
<TABLE>
<CAPTION>
====================================================================================================================================
Fiscal Years Ended August 31
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Earnings: 1997 1996 1995 1994 1993
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Net Income $10,235,000 $11,044,000 $11,225,000 $20,687,000 $14,000,000
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Add:
Fixed charges less capitalized
interest 16,882,000 15,785,000 15,104,000 10,444,000 10,472,000
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Minority interest in income 198,000 275,000 285,000 221,000 92,000
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Less:
Minority interests in losses of
unconsolidated majority-owned
subsidiaries (60,000) (49,000) (48,000) (38,000) (34,000)
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Gains on sales of interests in real
estate (1,069,000) (865,000) (119,000) (12,362,000) (3,875,000)
------------ ------------ ------------ ------------- ------------
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Total Earnings $26,186,000 $26,190,000 $26,447,000 $19,599,000 $20,655,000
=========== ============ ============ ============ ===========
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Fiscal Years Ended August 31
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Fixed Charges: 1997 1996 1995 1994 1993
---- ---- ---- ---- ----
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Interest expense - wholly owned
subsidiaries $ 9,086,000 $ 9,831,000 $ 8,908,000 $ 4,162,000 $ 2,222,000
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Capitalized interest - wholly-owned
and unconsolidated subsidiaries -- -- -- -- --
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(A)Fixed charges of
unconsolidated subsidiaries and
equity method investments 7,796,000 5,954,000 6,196,000 6,282,000 8,250,000
---------- --------- --------- --------- ---------
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Total Fixed Charges $16,882,000 $15,785,000 $15,104,000 $10,520,000 $10,472,000
=========== =========== =========== =========== ===========
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Ratio of Earnings to Fixed 1.55 1.66 1.75 1.80 1.97
Charges
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</TABLE>
