PREIT Sells four non-core malls for $92.35 million

Philadelphia -- PREIT announced it has completed the sale of four additional non-core malls. This is a milestone achievement for the company that signifies the near-completion of non-core mall disposition effort with one remaining mall being marketed for sale.



Mall disposition transactions include:

• Lycoming Mall in Pennsdale, Pennsylvania, anchored by J.C. Penney, Sears, Bon-Ton and Macy's sold for $26.35 million.



• A three mall package sold for $66 million, inclusive of $17 million in seller financing. PREIT may also be entitled to $3.5 million of additional consideration for these malls if certain conditions are met in future years. The properties in this transaction are:



o Gadsden Mall in Gadsden, Alabama anchored by Belk, J.C. Penney and Sears.

o New River Valley Mall in Christiansburg, Virginia anchored by Belk, Dick's Sporting Goods, JC Penney and Kohl's.

o Wiregrass Commons Mall in Dothan, Alabama anchored by Belk, Burlington Coat Factory, Dillard's and J.C. Penney.



In November 2012, PREIT communicated its plan to reshape its portfolio by disposing of non-core properties, including its lower-productivity malls, in order to reduce debt, dramatically improve portfolio quality and drive operating results. Since that time, the company has executed this plan, resulting in the sale of 13 lower-productivity malls as well as several power centers and land parcels, and has generated approximately $600 million in gross proceeds.



"PREIT has remained steadfastly committed to creating a high-quality portfolio that delivers outstanding results for our shareholders," said Joseph Coradino, CEO for PREIT. "The disposition of these 13 malls redefines PREIT. With sales of $458 per square foot and remerchandising and redevelopment initiatives under way that provide a clear and realizable path to $500 per square foot, we are now a more compelling platform for retailers and investors, allowing us to continue to drive same-store NOI growth and strong shareholder returns."



The $600 million in gross proceeds has allowed the Company to reduce its overall indebtedness and fund value-creating redevelopment and remerchandising initiatives. Since 2011, PREIT has reduced its total debt by over $300 million and its bank leverage from 66.9% to approximately 50% as of December 31, 2015, with an outlined capital plan to drive this below 47% by 2018.