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Can PREIT Save Itself Before It's Too Late?


  • PREIT's NOI almost completely recovered compared to 2019 in the fourth quarter of 2021.
  • Despite this big improvement in operating performance, PREIT shares have continued sinking due to the REIT's lack of progress on debt reduction.
  • PREIT has a solid pipeline of asset sales likely to be completed this year.
  • The mall REIT has multiple potential paths to achieving the deleveraging needed to refinance its debt. Refinancing would unlock substantial upside for common and preferred shares.
  • PREIT preferred shares look like a more attractive (but still highly speculative) opportunity than the common shares.

Cherry Hill Mall / parking.

raw206/iStock Editorial via Getty Images

Last month, Pennsylvania Real Estate Investment Trust (PEI) (PEI.PB) (PEI.PC) (NYSE:PEI.PD) posted strong operating results for the fourth quarter of 2021. However, the overleveraged mall REIT once again

An empty corridor in a mall.

An empty corridor at Exton Square Mall. (Image source: Author.)

An interior view of Fashion District Philadelphia.

Image source: PREIT.

A debt schedule showing PREIT

Source: PREIT Q4 2021 Supplemental.

A slide showing PREIT

Source: PREIT June 2021 Investor Presentation, slide 49.

This article was written by

Adam Levine-Weinberg is a value investor who has been researching and writing about stocks for Seeking Alpha and The Motley Fool since 2011. He graduated from Swarthmore College in 2007, received an M.A. in Political Science from the University of Chicago in 2009, and received his CFA charter in 2017. He is always on the hunt for irrationally beaten-down stocks, particularly in the aerospace, retail, real estate, and auto sectors.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PEI, PEI.PC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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