Beleaguered PREIT Delisted From New York Stock Exchange
Pennsylvania Real Estate Investment Trust has been delisted from the New York Stock Exchange. Going forward, its shares will trade over the counter.
The Philadelphia-based mall owner faced delisting before, including a warning by the exchange this February. The company managed to avoid delisting that time, but now the exchange took the action because PREIT has been unable to maintain a market cap of more than $15M, The Real Deal reported.
On Friday, PREIT's market cap was about $12.8M. Company shares traded for about $2.26. Shares hit a recent high of $6.84 per share in August, but have dropped steadily since then.
PREIT reported a net loss of more than $71M for the third quarter of this year, an 87% increase from Q3 2021, despite a slight gain in revenue over the same period. As recently as about a month ago, the company was exploring selling itself or at least some of its prime properties to deal with its debt load.
The delisting news came even as things seemed to be looking up for PREIT, which declared and emerged from bankruptcy during 2020, the first pandemic year, when its properties were mostly shuttered.
Earlier this month, however, the company obtained one-year extensions on two credit facilities that were due to expire this month, totaling more than $900M, which is more than half of the company's overall debt load.
By October, the company had otherwise paid down $148M in debt, made possible in part by $110M in asset sales this year. The cost of its debt is increasing as interest rates rise, however, as much of it is floating rate.
