PHILADELPHIA, March 25, 2020 /PRNewswire/ -- PREIT (NYSE: PEI)
today reported on various aspects of its business during the
COVID-19 pandemic sweeping across the Unites States. PREIT
employees are working productively from remote locations and
continue to make progress toward key initiatives.
Key tenant openings:
Two anchor replacements opened
quietly without grand opening activity - DICK's Sporting Goods at
Valley Mall and Burlington at
Dartmouth Mall, both replacing Sears stores. PREIT looks
forward to celebrating these new additions within their communities
once advisable by health officials. They join Michaels stores
that recently opened at both Plymouth
Meeting and Moorestown Malls in February, marking the
completion of former Macy's box redevelopments at these two centers
and a meaningful amount of new space added to the rent roll in
2020.
Leasing activity:
PREIT has continued to conduct its
core business remotely. Since March
1, the Company has executed leased for over $4 million in annual gross rent:
- 14 new leases for annual gross rent of $1.4 million including new-to-portfolio
transactions with Tempur-Pedic and Veda as well as expanding
international retailer, Ardene who will open at Willow Grove Park,
and
- 20 renewals securing annual gross rent of $2.9 million
Update on mall and store operations:
- PREIT has continued to follow recommendations and orders of
government and health officials.
- At this time, PREIT has now closed all of its enclosed mall
properties across the nine states in which it operates. Many
restaurants and essential exterior-facing tenants remain open.
PREIT has continued to support these tenants through social media
and email blasts to our consumers and is hosting a variety of
community support initiatives including blood drives, mobile food
pantries and supporting restaurants that are offering discounted
and free meals to the medical community.
Balance sheet activity:
- Since the beginning of the year, the Company has completed the
sale of 3 additional outparcels for gross proceeds of approximately
$8 million.
- The Company expects to finalize its credit facility amendment
by the end of March.
"While this is certainly an unprecedented time, we are pleased
with how the PREIT team is responding to best position the
portfolio for the future," said Joseph F.
Coradino, Chairman and CEO of PREIT. "We believe that a
combination of lease provisions, insurance and federal, state and
local stimulus will allow us to effectively execute on our 2020
business plan. We wish all of our employees, shoppers and
tenants continued good health."
About PREIT
PREIT (NYSE: PEI) is a publicly
traded real estate investment trust that owns and manages
innovative properties at the forefront of shaping consumer
experiences through the built environment. PREIT's robust portfolio
of carefully curated retail and lifestyle offerings mixed with
destination dining and entertainment experiences are located
primarily in densely-populated, high barrier-to-entry markets with
tremendous opportunity to create vibrant multi-use destinations.
Additional information is available at www.preit.com or on
Twitter 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 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 changes in the retail and real estate industries, including
consolidation and store closings, particularly among anchor
tenants; current economic conditions, including the impact of the
COVID-19 pandemic and the steps taken by governmental authorities
and other third parties to reduce its spread, and 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; acts of violence at
malls, including our properties, or at other similar spaces, and
the potential effect on traffic and sales; 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; 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.
Due to the unprecedented and rapidly changing social and
economic impacts associated with the COVID-19 pandemic on the U.S.
and global economies generally, and in particular on the U.S.
retail environment, we are unable to predict or estimate the
ultimate impact on our business or business prospects. The ultimate
significance of COVID-19 on our business will depend on,
among other things: the extent and duration of the pandemic, the
severity of the disease and the number of people infected with the
virus; the effects on the economy of the pandemic and of the
measures taken by governmental authorities and other third parties
restricting day to day life and the length of time that such
measures remain in place; our ability to obtain waivers to continue
certain operations, including construction, and governmental
programs implemented to assist consumers and business owners.
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 our Annual Report on Form 10-K for the year ended December 31, 2019 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.
CONTACT:
Heather
Crowell
EVP, Strategy and Communications
(215) 454-1241
heather.crowell@preit.com
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SOURCE PREIT