PEI Stock Price, News & Analysis

Pennsylvania Real Estate Investment Trust (PREIT/NYSE: PEI) will announce its financial results for the quarter ending September 30, 2020, on November 6, 2020, before market trading. Notably, the company has withdrawn its full-year 2020 guidance due to the impacts of COVID-19, with no new guidance provided for the second quarter. This lack of guidance raises concerns about the company's financial outlook as it navigates challenging market conditions.

PREIT (NYSE: PEI) announced an extension of time to October 28, 2020, for 100% lender support under its Restructuring Support Agreement (RSA). This amendment follows progress in negotiations aimed at achieving an out-of-court business restructuring. Chairman and CEO Joseph F. Coradino expressed optimism about ongoing discussions and emphasized the need for additional financial flexibility to sustain competitive operations. Legal and financial advisors, including DLA Piper and PJT Partners, are assisting in this process, which is crucial for PREIT's future stability.

PREIT (NYSE: PEI) announced a recapitalization agreement with over 80% of its bank lenders, securing $150 million in additional capital to strengthen operations and extend debt maturity. This initiative aims to enhance financial health following proactive measures taken prior to the COVID-19 pandemic, such as asset sales and tenant diversification. The new funding, convertible into a senior secured facility, will provide liquidity and operational support. If less than 20% of lenders do not agree, PREIT may need to consider a Chapter 11 reorganization, which is expected to be expedited and not impact shareholders.

PREIT (NYSE: PEI) received a notice from the NYSE on September 25, 2020, indicating its non-compliance with the continued listing standards due to its stock price falling below $1.00 for 30 consecutive trading days. PREIT has six months to regain compliance by meeting the minimum share price requirements. The company plans to respond within ten business days and is considering options like a reverse stock split. Despite this setback, PREIT's ongoing operations and debt obligations remain unaffected. The company continues to comply with other listing requirements during this period.

PREIT (NYSE: PEI) provided a business update on October 1, 2020, focusing on initiatives to revitalize its portfolio amidst retail disruption from the COVID-19 pandemic. The Company secured a one-month extension for its Liquidity Facility with a potential $25 million expansion. Cash receipts for Q3 rents reached approximately 99%. Despite 4% of tenants not reopening, new tenants have increased occupancy by 163,000 square feet. With traffic growth reported at 74% compared to September 2019, PREIT is prioritizing customer engagement through community events.

PREIT announced changes to its operating hours, extending Friday and Saturday closing times to 8 pm, effective October 2, 2020. This adjustment accommodates the increasing operational capacity of experiential tenants. The company will also close on Thanksgiving Day to allow employees to spend time with family. CEO Joseph F. Coradino emphasized the importance of responding to shifting consumer demands. PREIT, a publicly traded real estate investment trust (NYSE: PEI), focuses on managing retail properties across 12 states, primarily in densely populated markets.

PREIT has announced new store openings in its portfolio, including an expanded Apple store at Cherry Hill Mall. The new retailers set to open include Jamba and Tempur-Pedic in Q4 2020, Sola Salon Studios, White House | Black Market, Windsor, Ardene, Blaze Pizza, and Planet Fitness. CEO Joseph F. Coradino emphasized the company's progress in rent collections and a diverse leasing pipeline, aiming to enhance consumer experiences ahead of the holiday season.

PREIT announced its "Park and Play" summer and fall event series aimed at community engagement while ensuring social distancing. The initiative features nearly two dozen outdoor events, including drive-in movies and various festivals, running through mid-September. Successful events have included a drive-in movie experience and a food truck drive-thru. Upcoming events include a Dinner and a Movie at Willow Grove Park on 9.19.2020 and the Parking Lot Social starting 9.23.2020, which offers diverse entertainment options. This initiative aims to strengthen community ties and support local businesses.