PHILADELPHIA, Dec. 15, 2021 /PRNewswire/ -- PREIT (NYSE: PEI),
a leading real estate investment trust focused on creating
thoughtful, community-centric properties, today announced that it
has met the criteria to extend the mortgage loan secured by
Woodland Mall and has secured unappealable approval on our
multi-family land at Moorestown Mall. These two key steps
underscore the embedded value underlying PREIT's portfolio of
irreplaceable assets and the Company's ongoing efforts to continue
to evolve its properties as one-stop destinations for
consumers.
Woodland Mall
The extension at Woodland Mall serves as a prime example of
PREIT's redevelopment achievements. In 2019, PREIT completed its
redevelopment of Woodland Mall by bringing in top-quality tenants
Von Maur, Urban Outfitters, Sephora,
local high-quality salon, Tricho, a new prototype Williams-Sonoma,
REI, Black Rock Bar & Grill and Michigan's second Cheesecake Factory.
These tenants joined other top brands including: Apple, Pottery
Barn and Lush. Looking ahead, Woodland Mall is expected to
house the portfolio's first Rose & Remington, Lovisa and
Offline by aerie. In 2022, Phoenix Theatres plans to bring
the moviegoing experience back to the property in a renovated,
top-tier offering.
"Achieving significant valuation improvement and cap rate
compression compared to this time last year has allowed us to
extend a key maturity on a strong property that is gaining momentum
following our strategic redevelopment," said Joseph F. Coradino, Chairman & CEO of
PREIT. "As we look ahead, the improved valuation paints an
encouraging picture for our ability to create value for our
stakeholders."
Moorestown Mall
With the latest approval, Moorestown Mall can take its next step
on the multi-family land, following approval of a tax incentive
that is required for closing ("PILOT"). Executing on
multi-family land sales represent a key step for the Company on
multiple fronts. First, they help to create thoughtful spaces
that enhance the property and surrounding community while
supporting a more sustainable future. They are also critical
to PREIT's capital-raising efforts, transforming underutilized
asphalt into value-enhancing real estate.
"Among other capital-raising initiatives, the PREIT team is
keenly focused on executing our multi-family land sales to reduce
leverage and our interest burden," Coradino said. "As the addition
of apartments and hotels extends across our portfolio of
properties, our growing customer base will deliver new benefits and
value to our existing tenants and communities."
Moorestown Mall represents the differentiated thinking that
PREIT believes is necessary needed to create value. The planned
multi-family and hotel additions paired with the addition of a
Cooper University Health Care facility bolster the existing dynamic
mix of tenants at the property. Including traditional and value
retail, dining, entertainment and fitness, Moorestown Mall
exemplifies PREIT's five core areas of future growth.
About PREIT
PREIT (NYSE:PEI) is a publicly traded real estate investment
trust that owns and manages innovative properties developed to be
thoughtful, community-centric hubs. PREIT's robust portfolio of
carefully curated, ever-evolving properties generates success for
its tenants and meaningful impact for the communities it serves by
keenly focusing on five core areas of established and emerging
opportunity: multi-family & hotel, health & tech, retail,
essentials & grocery and experiential. Located primarily in
densely-populated regions, PREIT is a top operator of high quality,
purposeful places that serve as one-stop destinations for customers
to shop, dine, play and stay. Additional information is available
at www.preit.com or on Twitter, Instagram or
LinkedIn.
Forward Looking Statements
This press release contains certain forward-looking statements
that can be identified by the use of words such as "anticipate,"
"believe," "estimate," "expect," "project," "intend," "may" or
similar expressions. 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 expectations and assumptions regarding our business, the
economy and other future events and conditions and are based on
currently available financial, economic and competitive data and
our current business plans. Actual results could vary materially
depending on risks, uncertainties and changes in circumstances that
may affect our operations, markets, services, prices and other
factors as discussed in the Risk Factors section of our other
filings with the Securities and Exchange Commission. While we
believe our assumptions are reasonable, we caution you against
relying on any forward-looking statements as it is very difficult
to predict the impact of known factors, and it is impossible for us
to anticipate all factors that could affect our actual results.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements include,
but are not limited to, the effectiveness of strategies we may
employ to address our liquidity and capital resources in the
future, our ability to achieve our forecasted revenue and pro forma
leverage ratio and generate free cash flow to further reduce our
indebtedness; our ability to manage our business through the
impacts of the COVID-19 pandemic, a weakening of global economic
and financial conditions, changes in governmental regulations and
related compliance and litigation costs and the other factors
listed in our SEC filings. Additionally, our business might be
materially and adversely affected by changes in the retail and real
estate industries, including bankruptcies, consolidation and store
closings, particularly among anchor tenants; current economic
conditions, including consumer confidence and spending levels and
supply chain challenges and the impact of the COVID-19 pandemic and
the public health and governmental response as well as the
corresponding effects on tenant business performance, prospects,
solvency and leasing decisions; our inability to collect rent due
to the bankruptcy or insolvency of tenants or otherwise; our
ability to maintain and increase property occupancy, sales and
rental rates; increases in operating costs that cannot be passed on
to tenants; the effects of online shopping and other uses of
technology on our retail tenants; risks related to our development
and redevelopment activities, including delays, cost overruns and
our inability to reach projected occupancy or rental rates; social
unrest and acts of vandalism and violence at malls, including our
properties, or at other similar spaces, and the potential effect on
traffic and sales; the frequency, severity and impact of extreme
weather events at or near our properties; our ability to sell
properties that we seek to dispose of or our ability to obtain
prices we seek; our substantial debt and the liquidation preference
of our preferred shares and our high leverage ratio and our ability
to remain in compliance with our financial covenants under our debt
facilities; our ability to refinance our existing indebtedness when
it matures, on favorable terms or at all; our ability to raise
capital, including through sales of properties or interests in
properties and through the issuance of equity or equity-related
securities if market conditions are favorable; and potential
dilution from any capital raising transactions or other equity
issuances.
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 the sections entitled "Item 1A. Risk Factors" in our Annual
Report on Form 10-K for the year ended December 31, 2020. We do not intend to update or
revise any forward-looking statements to reflect new information,
future events or otherwise.
Contact:
Heather
Crowell
EVP, Strategy and Communications
(215) 454-1241
heather.crowell@preit.com
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