PREIT Completes Sale of Nittany and North Hanover Malls

Highlights continued success of PREIT's ongoing disposition program

PREIT has sold 11 assets for nearly $400 million since 2012

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Sep 08, 2014, 04:58 ET

PHILADELPHIA, Sept. 8, 2014 /PRNewswire/ -- Pennsylvania Real Estate Investment Trust (PREIT/NYSE: PEI) announced today the successful completion of the sale of Nittany and North Hanover Malls for $32.3 million in the aggregate. The completion of this transaction represents a major milestone in the Company's commitment to enhancing the quality of its portfolio.

"Today's announcement demonstrates our continued success in opportunistically divesting assets to transform our portfolio and create value for shareholders," said Joseph F. Coradino, CEO of PREIT. "We have generated significant proceeds through our selective disposition program, while at the same time upgrading our core, high-quality properties. We are driving value by shaping a portfolio that derives nearly all of it's NOI from high-quality malls, while maintaining solid operational performance and a strong balance sheet."

PREIT commenced its disposition program in 2012 as part of its portfolio quality improvement strategy and, with today's announced sales, has sold 11 assets to date, has one under agreement of sale, and is negotiating agreements of sale for 2 parcels, bringing the total to 14 assets for over $400 million. The Company has been successful to date in selling six non-core malls that generated sales per square foot well under $250 for approximately $113.9 million.

Nittany Mall is a 534,000 square foot mall located in State College, PA, with sales of $243 per square foot and non-anchor occupancy of 70.0% as of June 30, 2014. North Hanover Mall is a 452,000 square foot mall located in Hanover, PA, with sales of $275 per square foot and non-anchor occupancy of 72.8% as of June 30, 2014.

Sales and occupancy at these two properties lagged PREIT's portfolio, which had averaged sales of $378 per square foot and non-anchor occupancy of 89.5% as of June 30, 2014.

About PREIT
PREIT is a real estate investment trust specializing in the ownership and management of differentiated retail shopping malls designed to fit the dynamic communities they serve. Founded in 1960 as Pennsylvania Real Estate Investment Trust, the Company owns and operates over 30 million square feet of space in properties in 12 states in the eastern half of the United States with concentration in the Mid-Atlantic region and Greater Philadelphia. PREIT is headquartered in Philadelphia, Pennsylvania, and is publicly traded on the NYSE under the symbol PEI. Information about the Company can be found at www.preit.com or on Twitter or LinkedIn.

CONTACTS:
Robert McCadden
EVP & CFO
(215) 875-0735

Heather Crowell
VP, Corporate Communications and Investor Relations
(215) 454-1241

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SOURCE PREIT