Recaps Balance Sheet Progress
Philadelphia, PA, September 26, 2017 – PREIT (NYSE: PEI) today announced that it has closed on the sale of its interest in the 801 Market Street office condominium. In the past month, the Company has executed on raising over $180 million in proceeds. With these transactions and a number of others in various stages of negotiation, including financings and parcel sales which are expected to be completed in the next several months, the Company expects to generate over $250 million in net proceeds.
Recently, the Company has completed the following transactions:
- Sale of Logan Valley Mall – PREIT completed the sale of this lower-productivity mall. Proceeds were $33.2 million.
- Series D Preferred Shares – The Company issued $120 million of preferred equity at 6.875% and is using the proceeds to redeem all of its Series A Preferred Shares at 8.25%. Annual preferred dividend savings are expected to be approximately $1.58 million on the previous amount outstanding.
- Sale of 801 Market Street Office condominium – The sale of the Company’s condominium interest resulted in proceeds of $30.75 million.
In addition to securing additional liquidity, the Company is focused on having a balance sheet highlighted by laddered maturities and flexibility. As new tenants come on line, the Company is naturally de-levering and simultaneously creating additional capacity under its existing credit facility. As an example, before the end of the month, five new tenants will have opened in former anchor store spaces.
In an environment ripe with value creation opportunities, PREIT is focused on raising capital through the sale of non-strategic assets as well as opportunistic financing and other capital markets opportunities. Strengthening our balance sheet continues to be a top priority for the Company, balanced with continuing to be a leader in evolving our portfolio.
PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT’s robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely-populated eastern U.S. with concentrations in the mid-Atlantic’s top MSAs. Since 2012, the company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capital expenditures. Additional information is available at www.preit.com or on Twitter or LinkedIn.