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Pennsylvania Real Estate Investment Trust Message Board

  • winmore_98 winmore_98 Mar 9, 2009 4:24 PM Flag


    PEI Presents at Citi's 2009 Global Property CEO Conference — PEI's COO,
    Ed Glickman commented that the company is focused on near-term liquidity
    and the completion of their significant redevelopment program. PEI plans to
    pull excess proceeds from refis this year giving them enough liquidity to
    fund the rest of their redevelopment capital needs and has largely cut all
    other projects out of their pipeline.
     Dividend Cut – The company’s recent dividend cut was a step in the right
    direction to get a hold of the tight liquidity and high leverage situation, in our
    view. The cut provides an additional ~$47m of cash annually. Glickman
    noted that the company is unlikely to cut the dividend further or to issue a
    dividend in stock given the retail client base, which relies on dividend
    income as well as the minimal broader impact that the excess cash provides
    compared to total financing needed.
     Leverage – Longer term leverage management will be a byproduct of higher
    NOI from recently redeveloped assets as well as stronger cash flows, which
    will be used to pay down debt, according to management. Asset sales and
    JVs are not likely avenues to reduce leverage given the weak economy and
    lack of transaction markets. In the near term, PEI is looking to take care of
    pressing maturities such as the LOC maturing in March 2010.
     Redevelopment – PEI’s major redevelopments at Cherry Hill, Voorhees,
    Market East, and Plymouth Meeting are nearing completion and should help
    in easing capital needs but also provide positive NOI. No new projects are
    expected in the near term.

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    • Thanks for posting - where did you find it? I looked everywhere this weekend for a transcript but couln't come up with anything.

      Insider buys - not cutting the dividend - seems like its been a long time since there has been positive things coming across the screen and its EXCELLENT :)

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