PREIT Provides COVID-19 Update

PHILADELPHIA, April 8, 2020 /PRNewswire/ -- PREIT PEI today provided an update on its efforts to stabilize cash flow while operations are temporarily suspended, concurrently positioning itself for a rapid re-boot of mall operations.  The Company has significantly reduced its expense burden while balancing the ability to quickly re-engage.  In the event the operations halt continues longer than anticipated, the Company has additional levers to pull to further reduce expenses.

EXPENSE MANAGEMENT

Last week, the Company took the difficult but necessary step of implementing a furlough of 37% of our staff by way of temporary suspension or hours reduction.  The furlough impacted 41 of our corporate office colleagues and 62 of our property colleagues, and we continue to provide benefits to the impacted employees.  

STIMULUS

The Company submitted an application for stimulus funds available through the CARES Act. The funds are being pursued through the Paycheck Protection Plan which is being administered jointly by the Treasury and the SBA.  

COMMUNITY & TENANT SUPPORT

The Company continues to work to support its operating tenants and local community partners through food donations and parking lot activations.  Read about our community support initiatives here. We have also launched a webpage to share resources with local and regional tenants including information on the federal emergency loan programs to assist them with obtaining relief.

"The task ahead of us all is to make every effort to bring health and wellness to the communities we serve and support one another in our pursuit of regaining normalcy," said Joseph F. Coradino, Chairman and CEO of PREIT. "Malls are a vital part of local economies, employing thousands and providing meaningful tax contributions to their municipalities.  PREIT continues to make strides in positioning the Company and our partners for future success."

To view prior releases related to PREIT's response to COVID-19, please click here or here.

About PREIT

PREIT 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.

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