PREIT (NYSE: PEI), a leading operator of diverse retail and experiential destinations, today provided a business update on key initiatives underway to revitalize the Company's portfolio and improve its financial performance and balance sheet liquidity.
The Company also announced that it has secured a one-month extension and obtained the flexibility for a $25 million expansion of its Liquidity Facility. The expansion, if it occurs, is subject to additional conditions. PREIT continues to focus on managing costs and is taking prudent steps to increase liquidity and preserve financial flexibility, while working toward a comprehensive financial restructuring to strengthen the Company's balance sheet and position it for long-term success.
"PREIT continues to take action to enhance the financial and operational health of the business as we navigate the challenging environment of retail disruption caused by the COVID-19 pandemic," said Joseph F. Coradino, CEO of PREIT. "We are encouraged by the progress we are making across our portfolio, as evidenced by increasing rent collections, as well as increasing customer traffic. We are also pleased that, through our ongoing discussions with our lenders, we have reached a short-term agreement to extend our covenant relief period and now have flexibility to expand our liquidity facility. This agreement reflects the collaborative discussions we have had to date, and we expect to continue to engage constructively with our bank lenders. We remain fully committed to serving our customers and communities, while prioritizing the safety of our teams who are working with exceptional dedication."
Collections:The Company continues to make progress in collecting COVID-period rents. As of September 30, 2020, PREIT had cash receipts representing 67% of billed Q2 and Q3 2020 rents. Specifically, the Company's cash receipts to date represent approximately 99% of Q3 rents, including payments toward prior months.
Occupancy and Tenant Re-Openings:The Company's portfolio is fully operational and substantially re-occupied, with 4% of tenants failing to re-open following the pandemic-related closures (inclusive of tenants that filed for bankruptcy protection in the aftermath). Following re-opening, 163,000 square feet of new tenants have opened for business in the same store portfolio and 82,000 opened at Fashion District.
Traffic and Community Building:As the weather turns colder, many of PREIT's properties are reporting traffic growth. For the week ended September 20th, traffic in the Company's core comparable portfolio grew by nearly 7% compared to the prior week. For the month of September, traffic across the core comparable portfolio registered 74% of September 2019, an improvement of over 1,000 basis points over August's comparison to 2019. The Company also continues to engage customers with community-building events. During the July through October period, 50 community events have been, or are being, hosted throughout the portfolio including outdoor entertainment events involving movies and concerts, drive through food truck festivals, job fairs and more. PREIT continues to work creatively with tenants across the portfolio to further engage customers and drive traffic across the portfolio.
About PREIT
PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages innovative properties at the forefront of shaping consumer experiences through the built environment. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in densely-populated, high barrier-to-entry markets with tremendous opportunity to create vibrant multi-use destinations. Additional information is available at www.preit.com or on Twitter or LinkedIn.
