Monday, October 20, 2014

Investor tells PREIT: 'Liquidate' lower-quality malls



Pennsylvania Real Estate Investment Trust (PREIT), the Philadelphia company that owns the Gallery at Market East and the Cherry Hill, Moorestown, Voorhees, Exton, Willow Grove and Plymouth Meeting malls, among others, "is still largely viewed as a low-quality mall company" that ought to "liquidate" 17 of it slower-performing malls and keep 16 "high quality 'Keeper' malls," so the stock price will be more likely to go up, writes Jonathan Litt, founder of Connecticut investor Land and Buildings, in a letter today to PREIT ceo Joseph F. Coradino.

PREIT properties are worth $30 a share, more than 50% above PREIT's recent trading price, Litt adds. It's as if Wall Street values half the company's malls at zero, he adds.

If PREIT can't find a buyer it should "explore strategic alternatives, including a sale of the entire company," Litt concludes.

Source: Philly.com

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