Despite Losses, Moorestown Mall Owner Optimistic About Future

MOORESTOWN, NJ — The owner of the Moorestown Mall saw a net loss of $35.7 million for the third quarter of 2020, but remains optimistic about its future.

The Pennsylvania Real Estate Investment Trust (PREIT) also announced a loss of $84.8 million this year as its properties struggle amid the coronavirus pandemic.

“We are pleased to be moving closer to a normal state in our business while moving forward with strengthening the company’s balance sheet and positioning it for long-term success through our prepackaged plan,” PREIT Chairman and CEO Joseph Coradino said. “Our court-approved expedited case timeline should allow us to emerge and quickly move to the next phase of our evolution bringing new and innovative uses to our properties as the landscape continues to rapidly evolve. We look forward to the upcoming holiday season, meeting our shoppers’ demands through an array of shopping options and opportunities to visit with Santa.”

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As of Nov. 1, 95 percent of PREIT’s lenders were on board with an agreement for an additional $150 million to support its continuing operations, according to court filings.

Under the deal, PREIT would have access to $150 million in new capital to strengthen the business and provide financial flexibility. The banks would convert PREIT's existing credit into a $150 million first lien senior secured facility, a $919 million facility consisting of a first lien senior secured term loan facility and a second lien secured term loan facility all of which will have a two-year term with a 1-year extension option. Read more here: Moorestown Mall Owner May Face Bankruptcy, Pending $150M Deal

It has also announced for sale of land for multifamily developments, including land at the Moorestown Mall. The projected profit for PREIT is $107.3 million. Officials had been discussing the possibility of bringing affordable housing to the mall before the pandemic took hold.

As it moves toward normalcy, PREIT continues to suffer losses. Its $35.7 million loss for this quarter is compared to a profit of $17.4 million for the same period in 2019. It attributes its losses to a more than three-month closure earlier this year due to the coronavirus pandemic.

It is still looking to fill a vacancy at Lord & Taylor, but said Sears is still obligated to pay its lease at its former store.

PREIT owns the Moorestown Mall, the Cherry Hill Mall and the Cumberland Mall, and is a part owner of the Gloucester Premium Outlets.

See more stories about New Jersey's coronavirus recovery.