Pennsylvania Real Estate Investment Trust on Wednesday announced it is in the midst of a robust capital raising effort, seeking to improve its balance sheet and mitigate the impact of interest expenses to drive earnings.
As a result of completed asset sales, the company has applied proceeds and excess cash from operations to pay down debt by $148 million through Oct. 31.
Additionally, the company said it has $127 million of assets under contract or negotiation for sale that are expected to close in the coming months. PREIT also has a robust pipeline of additional asset sales in various stages, including Phase II of its multifamily land portfolio.
According to a news release, PREIT recently closed on the sale of Cumberland Mall in Vineland, as well as several outparcels, bringing capital raised through asset sales this year to $110 million. The $45 million in proceeds from the sale of Cumberland Mall will be used to repay the $39 million mortgage balance with the excess proceeds used to pay down the company’s credit facility.
“We are pleased to make significant progress in executing on our plan to improve our balance sheet by raising capital through asset sales and driving value through our leasing and redevelopment efforts,” Joseph Coradino, chairman and CEO of PREIT, stated.