A day after reporting a 36% decrease of $18.6 million in the second quarter, mall owner PREIT announced it has executed a secured term loan for up to $30 million to shore up its liquidity as the COVID-19 pandemic draws on.
PREIT revenue decreased by $20 million in Q2 due to tenant bankruptcies and related store closings. Twelve store closures that emptied 59,000 sq. ft. of space this year took occupancy levels at the company’s malls down to 92.4%.
PREIT, which for several years has been disposing of under-performing properties and filling vacant anchor spaces with higher-traffic entertainment and restaurant tenants, is now expanding the scope of its mall curation.
"We are pursuing agreements with healthcare providers, food markets, and fulfillment and logistics operators and are exploring opportunities to incorporate research and lab facilities at our properties in addition to multifamily and hotel uses that are already underway,” said CEO Joseph Coradino.
PREIT has reduced its minimum liquidity requirement and continues to negotiate with its bank group to secure additional liquidity.