PREIT completes sale of multi-family land at Moorestown Mall with proceeds from asset sales to date and excess cash from operations used to reduce debt by $82 million

PHILADELPHIA CREAM, July 5, 2022 /PRNewswire/ — PREIT (NYSE: PEI), today announced the sale of two additional assets to $14.2 million.

The Moorestown shopping center land was sold for approximately $12 million and will be the site of 375 residential units. This transaction represents PREIT’s second multi-family land sale following an Exton Square Mall transaction that yielded approximately 350 units.

In addition, the Company completed the sale of an exterior parcel to Four Corners Property Trust for $2.4 million. PREIT expects to close 6 additional plots for $22 million in the next weeks.

The Company continues to prioritize its plan to raise capital and execute its asset sale plan with purchase and sale agreements signed for another $56 million and additional transactions in the pipeline for execution. As part of its debt reduction plan, the Company applied proceeds from the sale of assets and excess operating cash to repay debt in $82 million through June 30th2022.

“We are strongly focused on continuing to raise capital to improve our balance sheet as we simultaneously drive operational improvements, improving the overall quality of our offering,” said Joseph F. Coradino, Chairman and Chief Executive Officer of PREIT. “The closing of the Moorestown the sale of land is a testament to the power of the portfolio and the properties we have brought together.”

The sale of land for multi-family units at Moorestown Shopping Center is a significant step towards PREIT’s vision to evolve its properties. PREIT is focused on transforming its properties into community centers marked by a healthy mix of apartments, hotels, entertainment, restaurants, health and wellness, workspaces and small local businesses. This initiative capitalizes on PREIT’s portfolio of Bullseye locations to produce a broader consumer base, delivering more to its communities and driving the success of its tenants.

About PREIT

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages innovative properties designed to be thoughtful, community-focused hubs. PREIT’s strong portfolio of carefully curated and constantly evolving properties generates success for its tenants and significant impact for the communities it serves by focusing on five primary areas of established and emerging opportunity: multifamily and hotel, health and technology, retail, daily necessities. & groceries and experiential. Located primarily in densely populated regions, PREIT is a leading operator of high-quality, purposeful venues 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 Where LinkedIn.

Forward-looking statements

This press release contains certain forward-looking statements which can be identified by the use of words such as “anticipate”, “believe”, “estimate”, “expect”, “project”, “intend”. , “power” 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 the 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 documents filed with the Securities and Exchange Commission. Although we believe that our assumptions are reasonable, we caution you against relying on forward-looking statements because 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 results. real. Important factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to, the effectiveness of strategies we may employ to manage our liquidity and capital resources in future, our ability to achieve our forecast pro forma earnings and 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, weakening global economic and financial conditions, changes in government regulations and related compliance and litigation costs and the other factors listed in our filings filed with the SEC. In addition, our business could be materially and adversely affected by changes in the retail and real estate industries, including bankruptcies, consolidations and store closures, 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 public health and government response and corresponding effects on tenant business performance, prospects, creditworthiness 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 expenses that cannot be passed on to tenants; the effects of online shopping and other uses of technology on our retail tenants; risks relating to our development and redevelopment activities, including delays, cost overruns and our inability to achieve anticipated occupancy or rental rates; civil unrest and acts of vandalism and violence at shopping malls, including our properties, or 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 the properties we seek to dispose of or our ability to obtain the prices we seek; our substantial indebtedness and preferred stock liquidation preference and our high debt-to-equity ratio and our ability to remain in compliance with our financial covenants under our credit facilities; our ability to refinance our existing debt when due, on favorable terms or not at all; our ability to raise capital, including through the sale of properties or interests in properties and the issuance of equity or equity-linked securities if market conditions are favourable; and the potential dilution of any capital raising transactions or other equity issues.

Other factors that could 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 titled “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
[email protected]
[email protected]

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