PREIT Urges Preferred Shareholders to Vote for Preferred Share Director Nominees by August 2, 2022 and Addresses Cygnus Capital Statement Issued July 7, 2022

PHILADELPHIA CREAM, July 8, 2022 /PRNewswire/ — PREIT (NYSE: PEI), today issued the following statement:

The Company and its counsel continue to make efforts to achieve a quorum for nominees for the position of Preferred Share Trustee before August 2, 2022 and again urge eligible preferred shareholders to vote. Eligible shareholders can vote by contacting Alliance Advisors at 1-866-407-1960 between 9:00 a.m. and 10:00 p.m. Eastern TimeMonday to Friday and Saturday and Sunday from 10 a.m. to 6 set forth in the solicitation documents provided to the SEC.

PREIT acknowledges and has fulfilled its obligations to permit and enable Preferred Shareholders to elect two Trustees to its Board. The Company welcomes and values ​​the views of all shareholders and is open to feedback that can help advance the goal of improving shareholder value. Accordingly, the Company endorsed the Preferred Shareholder nominees in a press release issued on March 28, 2022related here.

The Company remained engaged and in contact with Cygnus Capital and Mr. Hart throughout the election process. The Company has complied with its obligations with respect to the election of nominees for the office of Preferred Shareholder Trustee by including the nominees in its proxy statement, engaging a proxy canvasser to achieve a quorum to vote for Preferred Shareholder Trustee nominees and incurring additional expenses for subsequent mailing. , solicitation calls, e-mails and automated telephone calls. PREIT has filed all of these solicitation efforts with the SEC, further encouraging voting activity.

With respect to Cygnus’ assertion that a quorum (i.e. a majority of the preferred shares) was reached at the annual meeting of shareholders on June 2, 2022, the Company respectfully, but strongly, disagrees. As a Pennsylvania business trust, the company is governed by its trust agreement and articles of association, which require a quorum of a majority of outstanding preferred stockholders, voting together as one class, in order to properly hold the election. Unfortunately, the quorum of preferred shareholders was not reached at the time of the annual meeting. Accordingly, the meeting was adjourned until August 2, 2022 at 11:00 a.m. Eastern Time allow additional time to obtain a quorum of preferred shareholders.

Regarding the Company’s future debt maturities:

  • The Company has indicated on several occasions that it expects to be able to meet the covenants to extend its credit facility which initially expires in December 2022.
  • The Company remained in compliance with all covenants of the credit facility during the term of the agreement.
  • The company is working to resolve its obligations in the Fashion District.

In addition, the Company has prioritized capital raising initiatives to reduce debt and cover interest costs. As a result, the Company recently announced that it has sold three assets and has used the year-to-date proceeds from the sale of assets and excess cash from operations to reduce the debt of $82 million. The Company has also entered into sales agreements for another $56 million and additional transactions in the pipeline for execution.

The Board of Directors and the management team are committed to increasing shareholder value and are committed to engaging with stakeholders and implementing key strategic initiatives.


PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages innovative properties designed to be thoughtful, community-focused hubs. PREIT’s strong portfolio of carefully curated and constantly evolving properties generates success for its tenants and significant impact for the communities it serves by focusing on five primary areas of established and emerging opportunity: multifamily and hotel, health and technology, retail, daily necessities. & groceries and experiential. Located primarily in densely populated regions, PREIT is a leading operator of high-quality, useful places that serve as one-stop destinations for customers to shop, dine, play and stay. Additional information is available at Or on Twitter, instagram Where LinkedIn.

Forward-looking statements

This press release contains certain forward-looking statements which can be identified by the use of words such as “anticipate”, “believe”, “estimate”, “expect”, “project”, “intend”. , “power” or similar expressions. 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 our current expectations and assumptions regarding our business, the economy and other future events and conditions and are based on currently available financial, economic and competitive data and our current business plans. Actual results could vary materially depending on the risks, uncertainties and changes in circumstances that may affect our operations, markets, services, prices and other factors, as discussed in the Risk Factors section of our other documents filed with the Securities and Exchange Commission. Although we believe that our assumptions are reasonable, we caution you against relying on forward-looking statements because it is very difficult to predict the impact of known factors and it is impossible for us to anticipate all factors that could affect our results. real. Important factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to, the effectiveness of our financial restructuring and any additional strategies we may employ to manage our liquidity and our capital resources in the future. ; our ability to achieve expected revenues and pro forma leverage ratio and generate free cash flow to further reduce indebtedness; the global COVID-19 pandemic and public health and governmental response, which have created periods of significant economic disruption and which have also exacerbated and may continue to exacerbate many of the risks listed herein; changes in the retail and real estate industries, including bankruptcies, consolidations and store closures, particularly among anchor tenants; changes in economic conditions, including unemployment rates and its effects on consumer confidence and spending, supply chain challenges, the current inflationary environment and the corresponding effects on tenant business performance, prospects, creditworthiness and leasing decisions; our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; our ability to maintain and increase property occupancy, sales and rental rates; increases in operating expenses not passed on to tenants, which may be exacerbated in the current inflationary environment; the effects of online shopping and other uses of technology on our retail tenants; risks relating to our development and redevelopment activities, including delays, cost overruns and our inability to achieve anticipated occupancy or rental rates; civil unrest and acts of vandalism or violence at shopping malls, including our properties, or other similar spaces, and the potential effect on traffic and sales; our ability to sell properties we seek to dispose of, which may be delayed by, among other things, the inability to obtain zoning, occupancy and other governmental approvals and permits or, to the extent required, endorsements from other third parties; potential impairment losses on certain long-lived assets, such as real estate, including losses we may be required to incur in connection with any disposal of assets; our substantial indebtedness and our ability to remain in compliance with our financial covenants under our credit facilities; our ability to raise capital, including through the sale of properties or interests in properties, subject to the terms of our credit agreements; and the potential dilution of any capital raising transactions or other equity issues.

Other factors that could cause future events, achievements or results to differ materially from those expressed or implied by our forward-looking statements include those discussed herein and in the sections titled “Item 1A. Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2021. We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

Important Information

This document may be considered a solicitation of the annual meeting to be reconvened to consider and vote on the preferred trustee election proposal to be held on August 2, 2022 at 11:00 a.m. Eastern Time. In connection with the annual meeting, PREIT has filed with the Securities and Exchange Commission (the “SEC”) a definitive proxy statement on April 22, 2022. BEFORE MAKING ANY VOTING DECISION, SHAREHOLDERS ARE ADVISED TO READ THE PROXY STATEMENT, ANY SUPPLEMENTS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BECAUSE THEY CONTAIN IMPORTANT INFORMATION. A Notice of Internet Availability of Proxy Materials containing instructions on how to access the definitive proxy statement has been mailed to shareholders eligible to vote at the annual meeting. No changes have been made to the Preferred Trustee Election Proposal to be voted on by the holders of outstanding preferred shares of PREIT at the Annual Meeting. PREIT’s definitive proxy statement and other documents filed by PREIT may be obtained free of charge at the SEC’s website, PREIT shareholders may also obtain, free of charge, a copy of the definitive proxy statement and other relevant filings by sending a request by post to PREIT, One Commerce Square, 2005 Market Street, Suite 1000, Philadelphia, Pennsylvania 19103, or on the Company’s website, https://


Heather Crowell

[email protected]

[email protected]


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