PREIT Executes Term Loan and Amendments to Credit Facility Agreements

PREIT has a primary focus on the ownership and management of differentiated retail shopping malls crafted to fit the dynamic communities they serve. The Company operates properties in 12 states in the eastern U.S. with concentration in the Mid-Atlantic and Greater Philadelphia region. The Company is headquartered in Philadelphia, Pennsylvania. More information about PREIT can be found at  www.preit.com or on Twitter or LinkedIn.

PREIT today announced that it has executed a Secured Term Loan with certain of its existing lenders for up to $30 million, which is in addition to recently executed amendments to its 7-Year Term Loan and 2018 Credit Agreement. These are both important steps that create flexibility as the Company recovers from the extended COVID-19-related shutdown that has impacted its operations and liquidity position.

The Secured Term Loan allows for borrowings of up to $30 million and expires the earlier of (a) September 30, 2020, or (b) the date the obligations under the Secured Term Loan have been accelerated.  During the loan period, dividends on common and Preferred Shares will be suspended.

Among other items, the recently executed amendments to the Company's 7-Year Term Loan and 2018 Credit Agreement:

• Suspended certain financial covenants from June 30, 2020 until August 31, 2020, providing for an extension through September 30, 2020 if specific conditions are met, in addition to the execution of this Secured Term Loan, including entering into a non-binding agreement to the terms of further amendments to each of the 7-Year Term Loan and 2018 Credit Agreement,
• Reduced the Company's minimum liquidity requirement, and
• Provided for the ability to enter into this Secured Term Loan.

The Company is negotiating with its bank group regarding further amendments of the Company's 7-Year Term Loan and 2018 Credit Agreement in an effort to provide additional liquidity and ensure continued compliance with its obligations.

These are some of the many steps the Company has taken to enhance its liquidity, manage its debt obligations and further strengthen its financial foundation while navigating a difficult operating environment.

"We are grateful for the support of our bank group in managing through this challenging time.  The term loan and amendments allow us the flexibility to continue to execute on our recovery plan.   PREIT continues to be optimistic that well-located properties that have created the best overall consumer experience will continue to thrive," said Joseph F. Coradino, CEO of PREIT. "We are pursuing agreements with healthcare providers, food markets, fulfillment and logistics operators and are exploring opportunities to incorporate research and lab facilities at our properties in addition to multifamily and hotel uses that are already underway.  This interest is rooted in the quality of the locations and the underlying demographics associated with a portfolio with a concentration in high barrier-to-entry markets like Philadelphia and DC."

Please refer to the Company's SEC filings for details on these agreements.

About PREIT

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages innovative properties at the forefront of shaping consumer experiences through the built environment. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in densely-populated, high barrier-to-entry markets with tremendous opportunity to create vibrant multi-use destinations.  Additional information is available at www.preit.com or on Twitter or LinkedIn.

PREIT contact:

Heather Crowell
EVP, Strategy and Communications
(215) 316-6271
heather.crowell@preit.com