Springfield Mall Owner PREIT Sees Bright Future Despite Debt Obstacles

The Target store at the PREIT-owned Springfield Mall.
Image via PREIT.com.
The Target store at the PREIT-owned Springfield Mall.

There’s a sense of optimism from PREIT CEO Joe Coradino, as the company that owns the Springfield Mall and other malls in the region works toward reducing its debt, writes Natalie Kostelni for Philadelphia Business Journal.

“There is a bright future for this company,” said Coradino. “The ship has been righted. If you study our company, it’s pretty clear that the operating performance is stellar.”

PREIT has had trouble paying down a $1.2 billion debt and its stock value has declined to under 30 cents a share.

But the company intends to persevere.

It’s waiting on several agreements of sale on properties totaling $275 million. About $109 million of those should close by end of June, with money going to debt reduction. .

 “I think our challenge is debt reduction, which is going to occur as a result of closing on those transactions,” Coradino said. “If you think about our portfolio, adding multifamily, hotels and using various properties to sell land and out parcels, you end up with a good solid company whose primary focus is Philadelphia and D.C.”

There’s also been an increase in mall traffic, higher sales on a per-square-foot basis, strong leasing and a boost in rent collections.

Read more at Philadelphia Business Journal about PREIT’s optimistic outlook.

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