PREIT: Current Value Proposition
Quality Real Estate in Strong Markets
Strong Retail Sales Environment
Low Unemployment
Department Store Risk Mitigated
Embracing Differentiated Tenant Base
Densification Opportunities
Path to Reducing Leverage
2 Ahead of the Curve in Improving Environment
low-productivity mall disposition higher quality portfolio
anchor replacement diversified tenant mix
Sales Same Store NOI growth
reducing leverage
3 Becoming Modern-Day PREIT
4 Superior Demographics
5 Diversified Tenant Base
Fast Fashion & Off Price
Retail Incubation/Emerging Brands
Fitness & Recreation
Entertainment
Dining
6 Focus on Experiences
7 Focus on Dining
8 Focus on Convenience & Community
9 Completed Anchor Enhancements
10 Anchor Replacement Statistics
8x • Average New Rents Generated from Boxes
3x • Sales Multiple Generated from new Tenants
$22 million • Average Investment
>25 tenants • Replacing 12 Department Stores since 2017
12 • Boxes Replaced
11 Anchor Replacement Success Stories
12 Anchor Replacement Program
13 Sears exposure as a differentiator
0 10 20 30 40 50 60 70
14 Balance Sheet Strategy
WELL-LADDERED DEBT MATURITIES
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• MINIMAL EXPOSURE TO FLOATING RATE DEBT
• SUFFICIENT LIQUIDITY BEYOND COMMITTED CAPITAL NEEDS
• STRONG DIVIDEND COVERAGE
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• MAINTAIN DIVERSE DEBT SOURCES
15 Liquidity and Spending Vitals
LIQUIDITY as of 6.30.18
PROCEEDS FROM REMAINING NON-CORE SALES
REMAINING SPENDING
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16 Key Balance Sheet Facts
$700 million • Recast of $400 million credit facility and $300 million
term loan complete Unchanged • Cap Rates and Interest rate spreads
4.9 years • Average loan maturity incl. extension options
4.06% • Average cost of debt (as of 6/30/18)
92% Fixed • Only 8% of debt subject to fluctuation in rising rate environment 17 Well-Laddered Debt Maturities
$800 $700 $600 $500 $400 $300 $200 $100 $0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
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18 Redevelopment Appendix
19 Redevelopment & Anchor Repositioning Strategy
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22 Capital City Mall
24 Valley Mall Anchor Enhancement: Fashion, Fitness, Food, Fun
Redevelopment Opportunity
25 Mall at Prince Georges: MPG
26 MPG: Renovation
27 MPG: Introducing New Brands
28 Plymouth Meeting Redevelopment
30 Woodland Mall
31 Fashion District Philadelphia
32 Fashion District Philadelphia
Style
Dining
Entertainment
33 Fashion District Philadelphia
34 Future Growth Opportunity
35 The Strategy
36 Geography
37 Forward Looking Statement THANK YOU