Inside PREIT's new Fashion District Philadelphia mall.
Pennsylvania’s largest owner of enclosed malls has taken actions to strengthen its balance sheet and create $300 million in incremental liquidity.
PREIT decreased the size of its quarterly dividend by 90% to two cents per common share to make up $60 million in liquidity for the year. It has increased its borrowing capacity by more than $83 million by executing amendments to its credit facilities. It also plans to reduce its capital spending projections by 11% to save $11 million.
CEO Joseph Coradino said the steps were taken to help his company “navigate an uncharted operating environment.”
"PREIT was among the first companies in our sector to embark on a proactive effort to improve our portfolio through anchor repositioning and redevelopment, completing the program ahead of industry peers and in advance of the COVID-19 pandemic,” Coradino said. “We are now laser-focused on improving our balance sheet to position PREIT for long-term success."
PREIT also is pursuing various forms of relief and funding at federal, state, and local levels to reduce its tax liabilities by more than $10 million.