Pennsylvania Real Estate Investment Trust : PREIT Makes Meaningful Progress on Key Balance Sheet Improvement Initiatives, Securing Extension of Woodland Mall Mortgage and Unappealable Approval on Multi-Family Development at Moorestown Mall – Form 8-K
PREIT is making significant strides on key balance sheet improvement initiatives, securing the mortgage loan extension in Woodland Mall and final approval for the apartment building development in Moorestown Mall
Successful redevelopment of the Woodland Mall 2019 supports the evaluation; The secured tax incentive for the Moorestown Mall lays the foundation for the next phase of development
PHILADELPHIA, DECEMBER 15, 2021 – PREIT (NYSE: PEI), a leading real estate fund focused on creating thoughtful, community-oriented real estate, announced today that it has met the criteria for the Woodland Mall-backed mortgage loan renewal and received final approval for our apartment building 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 develop its properties as one-stop consumer destinations.
Woodland Mall
The Woodland Mall expansion is a prime example of PREIT’s renovation work. In 2019, PREIT completed the redevelopment of the Woodland Mall by bringing together top tenants Von Maur, Urban Outfitters, Sephora, the local high-end 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, the Woodland Mall is expected to house the first Rose & Remington, Lovisa and Offline by aerie of the portfolio. In 2022, Phoenix Theaters plans to bring the cinema experience back to the property in a renovated, premium offering.
“Achieving a significant valuation improvement and a reduction in the cap rate compared to this point last year has enabled us to extend an important term on a strong property that is gaining momentum after our strategic redevelopment,” said Joseph F. Coradino , Chairman and CEO of PREIT. “Looking ahead, the improved rating paints an encouraging picture of our ability to create value for our stakeholders.”
Moorestown Mall
With the latest approval, the Moorestown Mall can take the next step on the multi-family property after approving a Tax Allowance (“PILOT”) required to close it. Conducting land sales for apartment buildings is an important step for the company on several fronts. First, they help create thoughtful spaces that add value to property and the surrounding community while supporting a more sustainable future. They are also critical to PREIT’s capital-raising efforts that are turning unused asphalt into value-adding properties.
“Among other fundraising initiatives, the PREIT team has a strong focus on completing our multi-family land sales to reduce debt and our interest burden,” said Coradino. “As the expansion of our real estate portfolio to include apartments and hotels, our growing customer base will bring new benefits and added value to our existing tenants and communities.”
The Moorestown Mall represents the differentiated thinking that PREIT believes is necessary to create value. The planned multi-family and hotel extension paired with a Cooper University Health Care facility strengthens the property’s existing dynamic tenant mix. Including traditional and affordable retail stores, dining, entertainment and fitness, the Moorestown Mall exemplifies the five core areas of PREIT’s future growth.
About PREIT
PREIT (NYSE: PEI) is a publicly traded real estate fund that owns and manages innovative properties that have been developed into thoughtful, community-centric hubs. PREIT’s robust portfolio of carefully curated, constantly evolving properties generates success for its tenants and significant impact for the communities it serves by focusing heavily on five core areas of established and emerging opportunities: Apartment Buildings & Hotel, Health & Technology, Retail, Essentials & Grocery and Experience. Primarily located in densely populated areas, PREIT is a top operator of high quality, functional venues that serve as one-stop destinations for customers to shop, eat, play, and hang out. Further 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, expected events, trends and other matters that are not historical facts. These forward-looking statements reflect our current expectations and assumptions about 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 may vary depending on the risks, uncertainties and changes in circumstances
may affect our business, 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 that our assumptions are reasonable, we caution you not to place undue reliance on forward-looking statements because it is very difficult to predict the effects 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 improve our liquidity and capital resources in the future, our ability to meet our forecast . achieve sales and pro forma leverage ratio and generate free cash flow to further reduce our debt; our ability to run our business in the face of the impact of the COVID-19 pandemic, a slowdown in global economic and financial conditions, changes in government regulations and associated compliance and litigation costs, and the other factors listed in our SEC filings, respectively. In addition, changes in the retail and real estate industries, including bankruptcies, consolidations and store closures, particularly among anchor tenants, could materially and adversely affect our business; 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 government response and the corresponding impact on tenants’ business performance, prospects, solvency and rental decisions; our inability to collect rent due to bankruptcy or bankruptcy of tenants or any other reason; our ability to maintain and increase property occupancy, sales and rental prices; Increases in operating costs that cannot be passed on to tenants; the impact of online shopping and other technology uses on our retail tenants; Risks associated with our development and remediation activities, including delays, cost overruns and our inability to meet forecast occupancy or rental rates; social unrest and acts of vandalism and violence in shopping centers, including our real estate, or in other similar locations and the possible impact on traffic and sales; the frequency, severity and impact of extreme weather events on or near our properties; our ability to sell properties that we want to sell or our ability to achieve the prices we seek; our substantial indebtedness and liquidation preference of our preferred stock and our high leverage and ability to meet our financial obligations under our credit facilities; our ability to refinance our existing debt when due, on favorable terms or at all; our ability to raise capital, including through the sale of real estate or interests in real estate and by issuing shares or equity related securities when market conditions are favorable; and potential dilution from fundraising transactions or other equity issues.
Other factors that could cause future events, successes or results to differ materially from those expressed or implied in our forward-looking statements include those herein and the sections headed “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
EPP, strategy and communication
(215) 454-1241
Disclaimer of liability
PREIT – Pennsylvania Real Estate Investment Trust published this content on December 15, 2021 and is solely responsible for the information contained therein. Distributed by public, unedited and unchanged, on December 15, 2021 21:18:05 UTC.
Publicnow 2021
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Technical Analysis Trends PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
| In the short term | Halftime | Long term | |
| Trends | Bearish | Bearish | Bearish |
Development of the income statement
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| Medium consensus | STOP |
| Number of analysts | 1 |
| Last closing price |
1.02 |
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