PREIT Sells Orlando Fashion Square Mall

Tue Feb 12, 2013 5:46pm EST

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PHILADELPHIA--(Business Wire)--
Pennsylvania Real Estate Investment Trust (PREIT/NYSE: PEI) announced today that
it has sold Orlando Fashion Square Mall in Orlando, Florida for $35.0 million in
cash, resulting in a gain of approximately $0.6 million to be recognized in the
first quarter of 2013. This sale marks another step in PREIT`s
previously-announced plan to improve the quality of its portfolio by selling
certain non-core assets. 

Orlando Fashion Square Mall is a 1.1 million square foot regional mall, anchored
by Dillard`s, jcpenney, Macy`s and Sears. The property is subject to a ground
lease. Sales at the property were $233 per square foot and non-anchor occupancy
was 80.7% as of December 31, 2012, both of which were below PREIT`s portfolio
averages. The sale price represents a capitalization rate of approximately 9.8%.


The property was part of the collateral pool securing the Company`s 2010 Credit
Facility. The Company used the net proceeds from the transaction and a nominal
amount of cash to pay the applicable release price, and in connection with the
closing, the Company obtained the release of the lien on Orlando Fashion Square.


"The sale of Orlando Fashion Square and the previously-announced sale of
Phillipsburg Mall are further evidence of our commitment to the plan we`ve laid
out to elevate the quality of our portfolio and improve our operating metrics.
We are pleased with the terms of this transaction and look forward to continuing
to achieve our strategic objectives," said Joseph F. Coradino, CEO of PREIT. 

About Pennsylvania Real Estate Investment Trust

Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first
equity REITs in the U.S., has a primary investment focus on retail shopping
malls. Currently, the Company's portfolio of 46 properties comprises 36 shopping
malls, seven community and power centers, and three development properties. The
Company`s properties are located in 13 states in the eastern half of the United
States, primarily in the Mid-Atlantic region. The operating retail properties
have approximately 31.0 million total square feet of space. PREIT, headquartered
in Philadelphia, Pennsylvania, is publicly traded on the NYSE under the symbol
PEI. The Company's website can be found at www.preit.com. 

Forward Looking Statements

This press release contains certain "forward-looking statements" within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. 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 uncertainties affecting real estate
businesses generally as well as the following, among other factors: our
substantial debt and our high leverage ratio; constraining leverage, interest
and tangible net worth covenants under our 2010 Credit Facility; potential
losses on impairment of certain long-lived assets, such as real estate, or of
intangible assets, such as goodwill; potential losses on impairment of assets
that we might be required to record in connection with any dispositions of
assets; recent changes to our corporate management team and any resulting
modifications to our business strategies; our ability to refinance our existing
indebtedness when it matures, on favorable terms or at all, due in part to the
effects on us of dislocations and liquidity disruptions in the capital and
credit markets; our ability to raise capital, including through the issuance of
equity or equity-related securities if market conditions are favorable, through
joint ventures or other partnerships, through sales of properties or interests
in properties, or through other actions; our short- and long-term liquidity
position; current economic conditions and their effect on employment, consumer
confidence and spending and the corresponding effects on tenant business
performance, prospects, solvency and leasing decisions and on our cash flows,
and the value and potential impairment of our properties; general economic,
financial and political conditions, including credit market conditions, changes
in interest rates or unemployment; changes in the retail industry, including
consolidation and store closings, particularly among anchor tenants; our ability
to maintain and increase property occupancy, sales and rental rates, in light of
the relatively high number of leases that have expired or are expiring in the
next two years; increases in operating costs that cannot be passed on to
tenants; risks relating to development and redevelopment activities; the effects
of online shopping and other uses of technology on our retail tenants;
concentration of our properties in the Mid-Atlantic region; changes in local
market conditions, such as the supply of or demand for retail space, or other
competitive factors; potential dilution from any capital raising transactions;
possible environmental liabilities; our ability to obtain insurance at a
reasonable cost; and existence of complex regulations, including those relating
to our status as a REIT, and the adverse consequences if we were to fail to
qualify as a REIT. 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 in the section of our
Annual Report on Form 10-K in the section entitled "Item 1A. Risk Factors" and
in our Quarterly Reports on Form 10-Q. We do not intend to update or revise any
forward-looking statements to reflect new information, future events or
otherwise.

PREIT
Robert McCadden
EVP & CFO
215-875-0735 



Copyright Business Wire 2013

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