Pennsylvania Real Estate Investment Trust, owner of Springfield Mall, saw fourth-quarter earnings that did not meet expectations, causing its shares to drop by 27 percent, writes Natalie Kostelni for the Philadelphia Business Journal.

It remains in active talks with lenders over the issue, but warned it may not be able to meet some covenants on its debt.

It is looking to modify the terms of its debt by the end of next month so it can stay in compliance and find a long-term solution.

During a conference call earlier this week to discuss the quarterly results, some analysts questioned the company’s decision to continue paying a dividend.

However, Joe Coradino, PREIT CEO, defended the decision, saying that a 21-cent a share dividend is paid through land sales and not from free cash flow.

Coradino also used the opportunity to highlight some of the company’s accomplishments, including emphasizing that 47 percent of its tenants are not traditional mall businesses including dining, off-price merchants, and fitness.

“We’re on a mission to prove that malls have a bright future,” said Coradino.

Read more about PREIT at the Philadelphia Business Journal by clicking here.

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