PREIT accelerates efforts to improve portfolio quality and balance sheet

Philadelphia -- PREIT announced that its recent sale of Palmer Park Mall marked the ninth lower-productivity mall sold by the company since having announced its plans to divest non-core properties in late 2012. These properties generated average sales per sf of $254 at the time of sale. The company also has four additional malls under contract with significant non-refundable deposits. Pro-forma January 31, 2016 portfolio sales per square foot excluding the assets sold or under contract for sale are $451.



In total, including several other non-core properties sold, the program has generated over half a billion dollars in gross proceeds, contributing to the company's reduction in its Bank Leverage ratio from 64.1% as of September 2012 to approximately 50% as of December 2015. Balance Sheet strengthening, in addition to portfolio quality, has been at the core of PREIT's efforts, having demonstrated a plan at its January 2016 investor day to reach below 47% leverage in 2018. The company has since repaid the mortgage loan on Valley Mall in Hagerstown, Maryland, increasing the pool of unencumbered properties supporting its borrowing capacity under the company’s line of credit.



Recently completed transaction for the company include:



• Saks OFF 5th at Springfield Town Center located in Springfield, Virginia.

• Round 1 Bowling & Entertainment at Exton Square located in Exton, Pennsylvania

• Dry Goods, a concept created by Von Maur, at Woodland Mall located in Grand Rapids, Michigan.



"PREIT is on track to achieve its goal of $500 per square foot in sales, advancing our progression along the mall REIT quality continuum intended to drive shareholder value through an improved multiple and share price," said Joseph Coradino, CEO of PREIT.