PEI - PREIT Preferred Shares: A High-Risk Deep Value Play

• PREIT's common and preferred shares survived the REIT's late 2020 bankruptcy filing intact.
• Most of PREIT's malls are likely to recover nicely from the COVID-19 pandemic, although it may take a few years for occupancy and rents to return to pre-pandemic levels.
• PREIT is still carrying a massive debt load, and interest expense has surged due to the terms of its new (post-bankruptcy) loans.
• If market sentiment improves, PREIT should be able to fix its balance sheet by selling some assets. It could then refinance its debt at more reasonable interest rates.
• A successful balance sheet restructuring in this vein could unlock 150%-plus upside for PREIT's preferred shares over the next few years.

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