Pennsylvania Real Estate Investment Trust

Pennsylvania Real Estate Investment Trust is a publicly traded real estate investment trust that invests in shopping centers mostly in the Mid-Atlantic states.

Pennsylvania Real Estate Investment Trust
TypePublic company
NYSE: PEI
ISINUS7091021078 
IndustryReal estate investment trust
Founded1960 (1960)
FounderSylvan M. Cohen
HeadquartersPhiladelphia, Pennsylvania, U.S.
Key people
 Joseph F. Coradino, Chairman & CEO
Mario Ventresca, CFO
ProductsShopping centers
Revenue US$336 million (2019)
US$-13 million (2019)
Total assets US$2.351 billion (2019)
Total equity US$427 million (2019)
Number of employees
233 (2019)
Websitepreit.com
Footnotes / references
[1]

History

The company was founded by Sylvan M. Cohen in 1960 as one of the first equity REITs.[1][2] In 1997, the company acquired the Rubin Organization for $260 million.[3] In 2001, founder Sylvan Cohen died.[4] In 2003, the company acquired 6 shopping malls from The Rouse Company.[5][6] The company also acquired Crown American.[7] In 2006, the company acquired Woodland Mall for $177.4 million.[8] In 2012, Joseph Coradino was named chief executive officer of the company.[9]

In 2013, the company sold Christiana Center and Commons at Magnolia for $87.3 million.[10] In 2014, the company acquired a building in Philadelphia.[11] In 2015, the company acquired Springfield Town Center for $465 million from Vornado Realty Trust.[12] In 2016, the company sold 4 malls for $93 million.[13] In 2019, the company turned Wyoming Valley Mall over to its mortgage holder, GS Mortgage Securities Trust, to avoid foreclosure after failing to find a buyer for the property.[14][15] It owed $72.8 million on the loan, which had been in special servicing since July 2018.[14][16] The mall had lost almost 75% of its 2014 $122 million value before being turned over.[17]

PREIT filed for Chapter 11 bankruptcy protection on November 1, 2020 after previously anticipating an earlier protection filing due to the effects of the COVID-19 pandemic on malls.[18][19] The company exited bankruptcy on December 11, 2020.[20]

Portfolio

As of December 31, 2019, the company owned interest in 26 properties in 9 states containing 20.1 million square feet.[1]

Notable properties owned by the company include the following:[1]

Mall Location Notes
Capital City Mall Camp Hill, Pennsylvania
Cherry Hill Mall Cherry Hill, New Jersey
Cumberland Mall Vineland, New Jersey
Dartmouth Mall Dartmouth, Massachusetts
Exton Square Mall Exton, Pennsylvania
Fashion District Philadelphia Philadelphia, Pennsylvania 50% ownership with Macerich
Francis Scott Key Mall Frederick, Maryland
Jacksonville Mall Jacksonville, North Carolina
Lehigh Valley Mall Whitehall, Pennsylvania 50% ownership with Simon Property Group. Simon manages the mall.
Magnolia Mall Florence, South Carolina
Moorestown Mall Moorestown, New Jersey
Patrick Henry Mall Newport News, Virginia
Plymouth Meeting Mall Plymouth Meeting, Pennsylvania
Springfield Mall Springfield, Pennsylvania 50% ownership with Simon Property Group
Springfield Town Center Springfield, Virginia
The Mall at Prince Georges Hyattsville, Maryland
Valley Mall Hagerstown, Maryland
Viewmont Mall Scranton, Pennsylvania
Willow Grove Park Mall Willow Grove, Pennsylvania
Woodland Mall Grand Rapids, Michigan

References
  1. "Pennsylvania Real Estate Investment Trust 2019 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. "PREIT Celebrates 50 Years" (Press release). Business Wire. May 11, 2010.
  3. "Rubin Organization is Being Sold for $260 Million". The New York Times. Bloomberg News. August 1, 1997.
  4. Spires, Sheila W. (October 1, 2001). "PREIT founder and chairman Sylvan Cohen dies at 87". National Real Estate Investor.
  5. "Pennsylvania Real Estate Investment Trust Completes Rouse Transaction; Company Closes Acquisition of Remaining Two Shopping Malls from The Rouse Company" (Press release). Business Wire. June 5, 2003.
  6. "REIT is Buying 6 Philadelphia-Area Mall From Rouse". The New York Times. Bloomberg News. March 7, 2003.
  7. "Pennsylvania Real Estate Investment Trust Announces Completion of Merger with Crown American Realty Trust" (Press release). Business Wire. November 20, 2003.
  8. "Pennsylvania Real Estate Investment Trust Acquires Woodland Mall in Grand Rapids, Michigan" (Press release). Business Wire. January 3, 2006.
  9. "Joseph Coradino Becomes Chief Executive Officer of PREIT" (Press release). Business Wire. June 7, 2012.
  10. Van Allen, Peter (September 18, 2013). "Delaware mall sold by PREIT to reduce debt". American City Business Journals.
  11. DiStefano, Joseph N. (January 29, 2014). "PREIT buys 15th & Walnut corner". The Philadelphia Inquirer.
  12. Kostelni, Natalie (April 1, 2015). "PREIT closes on a $465M acquisition of a mall in Virginia". American City Business Journals.
  13. Burdo, Alison (March 30, 2016). "PREIT sells 4 malls for $93M". American City Business Journals.
  14. "PREIT Turns Over Wyoming Valley Mall in Deed-In-Lieu of Foreclosure". Commercial Real Estate Direct. September 27, 2019.
  15. Allabaugh, Denise (October 1, 2019). "Wyoming Valley Mall avoids foreclosure". The Citizens' Voice.
  16. "$74.3Mln CMBS Loan Against Pa. Mall Moves to Special Servicer as Vacancies Increase". Commercial Real Estate Direct. July 13, 2018.
  17. Kostelni, Natalie (September 27, 2019). "PREIT gives mall back to lender". American City Business Journals.
  18. Harris, Jon (November 2, 2020). "PREIT, co-owner of Lehigh Valley Mall, files for bankruptcy with plans to quickly restructure". The Morning Call. Retrieved 2 November 2020.
  19. Adelman, Jacob (November 2, 2020). "Viewmont mall owner PREIT files for bankruptcy in restructuring bid amid COVID-19 headwinds". Scranton Times-Tribune. The Philadelphia Inquirer. Retrieved 2 November 2020.
  20. Harris, Jon (December 11, 2020). "PREIT, co-owner of Lehigh Valley Mall, emerges from bankruptcy". The Morning Call. Retrieved 11 December 2020.
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