PHILADELPHIA, July 1, 2021 /PRNewswire/ -- PREIT (NYSE:
PEI), a leading real estate owner and developer, redefining the
future of the mall with mixed-use community-centric districts,
today announced that it has entered into over $172 million of mortgage loans, in the aggregate
and reflecting the Company's share. The mortgages are secured
by Viewmont Mall, Francis Scott Key Mall and two of the Company's
joint venture open-air assets, Court at Oxford Valley and
Red Rose Commons, extending all of
the Company's near term maturities.
Key terms of the financings include:
- Viewmont Mall
-
- $67.2 million
- Term: 3 years with 1-year extension option
- Interest at 3.6% over LIBOR
- Francis Scott Key Mall
-
- $60.5 million
- Term: 3 years with 1-year extension option
- Interest at 3.6% over LIBOR
- Court at Oxford Valley
-
- $27.5 million at Company's
share
- Term: 10 years
- Interest is a fixed rate of 3.2%
- Red Rose Commons
-
- $17.0 million at Company's
share
- Term: 10 years
- Interest is a fixed rate of 3.28%
"As we continue to experience momentum in our business, we are
pleased to complete these refinancing transactions, which are key
elements in PREIT's balance sheet repositioning as we move forward
in executing on our plan to strengthen our portfolio with a
transformative vision for our properties to create a more powerful
business model," said Joseph F.
Coradino, PREIT Chairman and CEO. "In addition to achieving
our business plan NOI objectives, executing on maturity extensions
and raising capital to ultimately reduce debt are key pillars of
PREIT's plan to improve our balance sheet."
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 expectations and assumptions regarding our business, the
economy and other future events, achievements, results 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 our filings with the
Securities and Exchange Commission. In particular, our business may
be materially and adversely affected by: 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; 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 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 in the
section entitled "Item 1A. Risk Factors" in our Annual Report on
Form 10-K for the year ended December 31,
2020. We do not intend to update or revise any
forward-looking statements to reflect new information, future
events or otherwise.
PREIT Contact:
Heather
Crowell
EVP, Strategy and Communications
(215) 454-1241
heather.crowell@preit.com
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SOURCE PREIT