Owner of Plymouth Meeting Mall concerned about company’s viability

The Philadelphia Business Journal reported on March 16th that PREIT, the owner of the Plymouth Meeting Mall and other malls, has serious concerns about being able to remain in business over the course of the next 12 months.

From the article:

PREIT, weighed down by $1.2 billion in debt and loan maturities on the horizon, has “substantial doubt” about its ability to remain in business over the next year, according to its annual report filed with the Securities and Exchange Commission.

The Philadelphia owner of regional malls came to that conclusion after evaluating its current financial condition, funds it has available, future cash flows and debt payments coming due. More immediately, PREIT has a loan referred to as the FDP Loan, which is backed by Fashion District Philadelphia and has a balance of $194.6 million that matures January 2023.

PREIT has been seeking to sell portions of its mall properties to developers wishing to construct apartments and hotels. It was recently announced that the entire Exton Mall property was sold to help raise cash for the company.

In regards to the Plymouth Meeting Mall, PREIT was denied a special exception in 2021 by the Plymouth Township’s Zoning Hearing Board to construct an 11-floor and 503-unit apartment building at the far end of the parking lot on the Whole Foods Market side of the property. That decision has been appealed.

You can read the full article from the Philadelphia Business Journal here.