PREIT Closes on Sale of Multi-Family Land at Moorestown Mall with Year-To-Date Asset Sale Proceeds and Excess Cash from Operations Used to Reduce Debt by $82 million
PREIT (NYSE: PEI) has successfully sold two assets for $14.2 million, including land at Moorestown Mall for $12 million intended for 375 residential units. This marks PREIT's second multifamily land sale following a prior transaction at Exton Square Mall. Additionally, a sale of an outparcel to Four Corners Property Trust was completed for $2.4 million. PREIT plans to close additional outparcels for $22 million. The company has reduced debt by $82 million year-to-date through asset sales and excess cash, aiming to enhance its balance sheet and operational efficiency.
- Successfully closed two asset sales totaling $14.2 million.
- First multifamily land sale at Moorestown Mall will add 375 residential units.
- Planned further asset sales worth $56 million in the pipeline.
- Debt reduction by $82 million year-to-date improves financial health.
- None.
PHILADELPHIA, July 5, 2022 /PRNewswire/ -- PREIT (NYSE: PEI), today, announced that it has sold two additional assets for
The Moorestown Mall land was sold for approximately
Additionally, the Company has closed on the sale of an outparcel to Four Corners Property Trust for
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
"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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