Red ink still pouring for owner of Cherry Hill Mall, Moorestown Mall

Jim Walsh, Cherry Hill Courier-Post
·2 min read
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Philadelphia-based PREIT, owner of Cherry Hill Mall, has ended its second bankruptcy.

PHILADELPHIA - The parent firm of two South Jersey malls has reported its losing streak continued with a $51.9 million deficit in its quarter.

Philadelphia-based PREIT also said it has extended a $237.1 million mortgage for Cherry Hill Mall, its top-performing shopping center.

That pushes back the mortgage's maturity to Dec. 1, "with an additional five-month extension option "subject to satisfaction of certain conditions."

More: PREIT sells assets to reduce debts Did shedding Cumberland Mall improve finances for owner of Cherry Hill, Moorestown malls?

PREIT also noted debt of $995.8 million is maturing in December, while its corporate cash balances and available credit provide liquidity of $117 million.

The company is "pursuing all available alternatives, including refinancing, selling assets and engaging in discussions with lenders," said Joseph Coradino, president and CEO.

He noted the firm has sold assets valued at more than $140 million since January 2022 and has used available funds to pay down debt.

"It's no secret that the credit markets are extremely challenging, particularly for enclosed malls," said Coradino.

PREIT also owns Moorestown Mall, where it is introducing a medical facility and an apartment complex in an effort to broaden its appeal.

Losses up for owner of Cherry Hill Mall, Moorestown Mall

PREIT's first-quarter loss, equal to $9.75 per share, was up from a year-before net loss of $39.3 million, or $7.40 per share.

Revenues were $67.2 million for the quarter ended March 31, down from $69.4 million a year earlier.

PREIT in March reported a net loss of $175.7 million for 2022, pushing its total deficit to more than $800 million over the past eight years.

Brooks Brothers coming back to Cherry Hill

Coradino took an optimistic view in a statement.

He said the latest figures show "the continued strength" of PREIT's tenant portfolio "and the resilience of the consumer as sales, occupancy and (net operating income) continue to show improvement."

Among coming changes, he said, Brooks Brothers menswear is planning a return to Cherry Hill Mall, he said.

"From an operational perspective, the business is performing well," asserted Mario Ventresca, who said the firm's bottom line was hit by a $12.2 million jump in interest costs.

PREIT operates 19 shopping malls and three other retail properties, mostly in the mid-Atlantic region.

It recently shed ownership of the Cumberland Mall in Vineland.

Jim Walsh is a senior reporter with the Courier-Post, Burlington County Times and The Daily Journal.

This article originally appeared on Cherry Hill Courier-Post: PREIT reports larger loss, extends mortgage for Cherry Hill Mall