Pennsylvania Real Estate Investment Trust, owner of Plymouth Meeting and Willow Grove malls, saw its shares fall by 27 percent after reporting fourth-quarter earnings that did not meet expectations and warned it may not be able to meet some covenants on its debt, writes Natalie Kostelni for the Philadelphia Business Journal.
The company stated it is in active talks with lenders over the issue. It is looking to modify terms of its debt by the end of next month so it can stay in compliance as well as find a long-term solution.
During a conference call earlier this week to discuss quarterly results, Joe Coradino, PREIT CEO, used the opportunity to highlight some of the company’s accomplishments.
These included opening Yard House at Willow Grove Park last year and the continuing construction of the 51,000-square-foot Studio Movie Grill, which is projected to open later this year.
He also emphasized that 47 percent of the company’s tenants are not traditional mall businesses such as dining, off-price merchants, and fitness.
“We’re on a mission to prove that malls have a bright future,” said Coradino.
Read more about PREIT at the Philadelphia Business Journal by clicking here.