PEI - PREIT posts Q3 FFO loss focuses on raising capital paying down debt

Pennsylvania REIT ( NYSE: PEI ), familiarly called PREIT, posted adjusted FFO loss per share in the third quarter as the shopping center REIT continued to raise capital to pay down debt, it said Tuesday.

Q3 adjusted FFO per share of -$1.13 vs. $1.71 in Q2 and -$1.20 in the year-ago quarter.

Q3 revenue of $72.8M vs. $73.1M in Q2 and $71.7M in the year-ago quarter.

Same-store net operating income, excluding lease termination revenue, rose 3.3% from a year ago; that compares with a 5.7% Y/Y decline in Q2.

Core mall total occupancy was 94.4% at the end of Q3 vs. 93.8% at the end of Q2. Total core mall leased space stood at 95.6% vs. 95.0% in the prior quarter.

Average renewal spreads for the the three months ended Sept. 30, 2022 was 8.7% and was 4.2% for the first nine months of the year.

Q3 total operating expenses of $72.3M increased from $69.9M in the prior quarter and declined from $75.8M in the year-ago quarter.

The company said its capital-raising efforts have advanced, including the sale of Cumberland Mall and several outparcels. As part of its debt reduction plan, PREIT has applied asset sale proceeds and excess cash from operations to pay down debt by $148M during the 10 months ended Oct. 31, 2022.

It currently has ~$130M in purchase and sales agreement executed or in final stages of negotiation, and has several others in the pipeline for potential future sales, the company, said.

PREIT's ( PEI ) net mortgage loans payable at Sept. 30, 2022 was $761M, down from $851.3M at Dec. 31, 2021.

Conference call at 11:00 AM ET.

Earlier, PREIT ( PEI ) reports Q3 results ; last week, the company said it extended the maturity of notes backing its Cherry Hill Mall by three months.

SA contributor Noor Darwish said he prefers PREIT's ( PEI ) series B preferred shares for their 10x upside ibn a liquidation scenario

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