By Chris Issac

PREIT had been able to get all of their malls opened up again near the start of the summer, but there was never any doubt that the months of being closed was going to have a heavy impact on their earnings.

Information about PREIT’s quarterly profits has now been made public, and the damage has totaled in at a net loss of $23.1 million.

That’s quite a big dip for the owner of malls like Willow Grove and Plymouth Meeting, as last year at this same point their net loss was only $6.1 million. While the significant blow was no doubt expected, it likely does not soften the damage much.

PREIT had already been facing challenging times even before COVID-19 made things difficult for everyone worldwide. But they certainly are not giving up on their properties as a result of these setbacks. PREIT is the largest mall owner in not only Philadelphia but in much of the surrounding area as well.

Prior to the shutdowns, efforts to revitalize some of PREIT’s malls were well underway, such as Willow Grove Mall introducing a movie theater.

As smaller physical retailers have become less lucrative, pivoting to more entertainment based attractions like restaurants has been seen as the new way to draw shoppers to malls. Obviously restrictions due to the virus and indoor dining have created an obstacle in that regard.

PREIT chief executive, Joseph F. Coradino, discussed the difficulties in a conference call after news of the $23.1 million loss was announced. He said, “The past few months have been intense and challenging. As a world, as a company, and certainly as a sector, our resolve continues to be tested. As Thomas Paine said, ‘These are the times that try men’s souls.‘”

Further evidencing these challenges is that PREIT’s total revenue for this period was announced as $56.8 million, down 30% from their report a year ago.

Provided there is not another shut down, it is reasonable to assume that PREIT has endured the worst of the blows for the year. With all their malls now open and garnering higher than anticipated customer rates, PREIT will presumably be able to begin looking at recovery.

Moves are already being made on that front, with PREIT seeking a $30 million loan to be paid back at the end of September, buying the company time to make more long term plans with the lenders at their banks.

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