New York Stock Exchange Warns Moorestown Mall Owner Amid Pandemic

MOORESTOWN, NJ — The New York Stock Exchange has warned the owner of the Moorestown Mall and two other South Jersey malls that it is in non-compliance with the exchange’s listing standards, the Pennsylvania Real Estate Investment Trust (PREIT) confirmed.

The standards require common stock to maintain a minimum average closing price of $1 per share over a consecutive 30-trading day period. The company has been struggling financially amid the coronavirus pandemic.

PREIT received the notice on Sept. 25 and has 10 days to respond. PREIT said it intends to regain compliance, which it would have six months to do.

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It can regain compliance by bringing its share price and 30-trading day average share price above $1. It can also do so by having a closing price of $1 per share on the last day of any month in the cure period in which it also had an average closing price of $1 per share for that month. If PREIT doesn’t regain compliance after the cure period, it may be de-listed.

During this period, PREIT's common shares will continue to be listed and traded on the exchange, provided it complies with the other continued listing requirements. The warning doesn’t affect PREIT’s business or its debt, PREIT said.

“PREIT is considering all available options to regain compliance with the NYSE's continued listing standards, which may include a reverse stock split,” PREIT said in a statement. A reverse stock split is when a corporation consolidates the number of shares it has into fewer, more valuable shares.

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

PREIT also announced it secured a one-month extension and obtained the flexibility for a $25 million expansion of its Liquidity Facility. The company said it has lost $49 million over the first six months of its fiscal year as a result of the coronavirus pandemic.

"PREIT continues to take action to enhance the financial and operational health of the business as we navigate the challenging environment of retail disruption caused by the COVID-19 pandemic," PREIT CEO Joseph F. Coradino said. "We are encouraged by the progress we are making across our portfolio, as evidenced by increasing rent collections, as well as increasing customer traffic. We are also pleased that, through our ongoing discussions with our lenders, we have reached a short-term agreement to extend our covenant relief period and now have flexibility to expand our liquidity facility. This agreement reflects the collaborative discussions we have had to date, and we expect to continue to engage constructively with our bank lenders. We remain fully committed to serving our customers and communities, while prioritizing the safety of our teams who are working with exceptional dedication."

The warning from the New York Stock Exchange came in the same month in which PREIT announced it has abandoned its planned sale and leaseback of the Moorestown Mall. Read more here: Moorestown Mall Leaseback Plan Abandoned Amid Pandemic

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