PHILADELPHIA--(BUSINESS WIRE)--Pennsylvania Real Estate Investment Trust (NYSE: PEI) announced today that it has completed the sale of Schuylkill Mall in Frackville, Pennsylvania to Empire Realty Investments, Inc. for $17.6 million. The total sale price represents a cap rate of approximately 10% based on 2007 budgeted operating income for the mall.
The net proceeds to PREIT were approximately $1.6 million, after closing costs and adjustments. PREIT expects to recognize a gain on the sale of $6.5 million in net income available to common shareholders, or $0.16 per diluted share, in the first quarter of 2007. This gain will not be included in Funds From Operations (“FFO”).
In 2003, Schuylkill Mall became part of PREIT’s portfolio as a result of the Crown American Realty Trust merger. Schuylkill Mall is a single story, 726,000 square foot enclosed regional mall located at the intersection of Highway 61 and Interstate 81 in Schuylkill County. Currently, the mall is anchored by Bon Ton, Kmart, Sears, and Black Diamond Antiques.
About Pennsylvania Real Estate Investment Trust
Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls and power centers located in the Mid-Atlantic region and eastern half of the United States. Currently, the Company’s portfolio consists of 56 retail properties. The Company has 49 retail, operating properties in 13 states, including 38 shopping malls, 11 strip and power centers, and seven properties under development. PREIT is headquartered in Philadelphia, Pennsylvania. The Company's website can be found at www.preit.com. PREIT is publicly traded on the NYSE under the symbol PEI.
This press release contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect PREIT’s current views about future events and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. More specifically, PREIT’s business might be affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: general economic, financial and political conditions, including changes in interest rates or the possibility of war or terrorist attacks; changes in local market conditions or other competitive or retail industry factors in the regions where our properties are concentrated; PREIT’s ability to maintain and increase property occupancy and rental rates, and risks relating to development or redevelopment activities, including construction, obtaining entitlements and managing multiple projects simultaneously Additionally, there can be no assurance that PREIT’s actual results will not differ significantly from the estimates set forth above, or that PREIT’s returns on its developments, redevelopments or acquisitions will be consistent with the estimates outlined in press releases or other disclosures. Investors are also directed to consider the risks and uncertainties discussed in documents PREIT has filed with the Securities and Exchange Commission and, in particular, PREIT's Annual Report on Form 10-K for the year ended December 31, 2006. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.
** Additional information about PREIT is available on www.preit.com **