PHILADELPHIA, Aug. 5, 2015 /PRNewswire/ -- Pennsylvania Real
Estate Investment Trust (NYSE: PEI) announced today that it has
completed the sale of Uniontown Mall in Uniontown, PA for $23.0
million. The buyer also separately acquired the fee
interest in the ground underlying the mall from an unaffiliated
party. The completion of the sale represents continued progress on
the Company's commitment to elevating its portfolio by allocating
capital toward high-quality enclosed malls.
Uniontown Mall is located in Uniontown, PA and is anchored by JC Penney,
Sears, Bon-Ton, Burlington Coat Factory and Teletech Customer
Care. Comparable sales per square foot as of June 30, 2015 were $282 compared to PREIT's portfolio average of
$418.
"Finalizing this transaction is another step in PREIT's
transformation," said Joseph F.
Coradino, CEO of PREIT. "Our transformed platform, which we
anticipate will generate sales exceeding $450 per square foot, is expected to provide
earnings stability and meaningful organic growth."
About PREIT
PREIT is a real estate investment
trust specializing in the ownership and management of
differentiated retail shopping malls designed to fit the dynamic
communities they serve. Founded in 1960 as Pennsylvania Real
Estate Investment Trust, the Company owns and operates over 27
million square feet of space in properties in 12 states in the
eastern half of the United States
with concentration in the Mid-Atlantic region and Greater
Philadelphia. PREIT is headquartered in Philadelphia, Pennsylvania, and is publicly
traded on the NYSE under the symbol PEI. Information about
the Company can be found at preit.com or on Twitter or
LinkedIn.
Forward Looking Statements
This press release,
together with other statements and information publicly
disseminated by us, contain certain "forward-looking statements"
within the meaning of the federal securities laws.
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 views about future
events, achievements or results and are subject to risks,
uncertainties and changes in circumstances that might cause future
events, achievements or results to differ materially from those
expressed or implied by the forward-looking statements. In
particular, our business might be materially and adversely affected
by uncertainties affecting real estate businesses generally as well
as the following, among other factors: our substantial debt and
stated value of preferred shares and our high leverage ratio;
constraining leverage, unencumbered debt yield, interest and
tangible net worth covenants under our 2013 Revolving Facility and
our Term Loans; potential losses on impairment of certain
long-lived assets, such as real estate, or of intangible assets,
such as goodwill, including such losses that we might be required
to record in connection with any dispositions of assets; changes in
the retail industry, including consolidation and store closings,
particularly among anchor tenants; our ability to sell properties
that we seek to dispose of or our ability to obtain estimated sale
prices; the effects of online shopping and other uses of technology
on our retail tenants; risks relating to development and
redevelopment activities; current economic conditions and the state
of employment growth and consumer confidence and spending, and the
corresponding effects on tenant business performance, prospects,
solvency and leasing decisions and on our cash flows, and the value
and potential impairment of our properties; our ability to
refinance our existing indebtedness when it matures, on favorable
terms or at all; our ability to raise capital, including through
the issuance of equity or equity-related securities if market
conditions are favorable, through joint ventures or other
partnerships, through sales of properties or interests in
properties, or through other actions; our ability to identify and
execute on suitable acquisition opportunities and to integrate
acquired properties into our portfolio; our partnerships and joint
ventures with third parties to acquire or develop properties; our
short and long-term liquidity position; general economic, financial
and political conditions, including credit and capital market
conditions, changes in interest rates or unemployment; our ability
to maintain and increase property occupancy, sales and rental
rates, in light of the relatively high number of leases that have
expired or are expiring in the next two years; acts of violence at
malls, including our properties, or at other similar spaces, and
the potential effect on traffic and sales; changes to our corporate
management team and any resulting modifications to our business
strategies; increases in operating costs that cannot be passed on
to tenants; concentration of our properties in the Mid-Atlantic
region; changes in local market conditions, such as the supply of
or demand for retail space, or other competitive factors; 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 in our Annual Report on Form 10-K for the year
ended December 31, 2014 in the section entitled "Item 1A. Risk
Factors." We do not intend to update or revise any forward-looking
statements to reflect new information, future events or
otherwise.
CONTACTS:
Robert McCadden
EVP & CFO
(215) 875-0735
Heather Crowell
VP, Corporate Communications and Investor Relations
(215) 454-1241
crowellh@preit.com
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SOURCE PREIT