PHILADELPHIA, July 5, 2022 /PRNewswire/ -- PREIT (NYSE:
PEI), today, announced that it has sold two additional assets for
$14.2 million.
The Moorestown Mall land was sold for approximately $12 million and will be the site of 375
residential units. This transaction represents PREIT's second
multifamily land sale following an Exton Square Mall transaction
that yielded approximately 350 units.
Additionally, the Company has closed on the sale of an outparcel
to Four Corners Property Trust for $2.4
million. PREIT expects to close on 6 additional
outparcels for $22 million in the
coming weeks.
The Company continues to prioritize its plan to raise capital
and execute on its plan to sell assets with purchase and sale
agreements executed for another $56
million and additional transactions in the pipeline for
execution. As part of its debt reduction plan, the Company
has applied asset sale proceeds and excess cash from operations to
pay down debt by $82 million through
June 30, 2022.
"We are keenly focused on continuing to raise capital to improve
our balance sheet as we simultaneously drive operational
enhancements, improving the overall quality of our offering," said
Joseph F. Coradino, Chairman and CEO
of PREIT. "The closing of the Moorestown land sale evidences the power of
the portfolio and the real estate we have aggregated."
The sale of land for multi-family units at Moorestown Mall is a
meaningful step toward PREITs vision to evolve its properties.
PREIT is focused on evolving its properties into community hubs
marked by a healthy mix of apartments, hotels, entertainment,
dining, health & wellness, working space, and local small
business retail. This initiative capitalizes on PREIT's portfolio
of bullseye locations to produce a broader consumer base, offering
its communities more and driving success for its tenants.
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, 2021. We do not intend to update or
revise any forward-looking statements to reflect new information,
future events or otherwise.
Contact:
Heather
Crowell
heather@gregoryfca.com
preit@gregoryfca.com
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