PREIT Completes $135 Million Sale of Five Power Centers

-Pennsylvania Real Estate Investment Trust PEI today announced that it has completed the previously disclosed sale of its interests in five wholly-owned power centers to Cedar Shopping Centers, Inc. CDR for $134.7 million. PREIT used a portion of the proceeds to repay $39.9 million of mortgage debt secured by three of the properties and to pay $57.4 million to release two properties securing PREIT's 2010 Credit Facility. Additionally, PREIT used $10.0 million to repay borrowings under its Revolving Facility and $8.9 million to repay borrowings under its Term Loan, both in accordance with Credit Facility terms. PREIT expects to use the remaining $18.5 million of the proceeds for general corporate purposes. Following the Credit Facility repayments, the Term Loan has a remaining balance of $347.2 million and the Revolving Facility has no current outstanding balance. PREIT expects to recognize a gain on sale of approximately $19 million in the third quarter of 2010. This gain will not be included in Funds From Operations (“FFO”). In connection with the permanent reduction of the balance of the Term Loan and the repayment of mortgage loans on the other properties, PREIT will record accelerated amortization of $1.5 million of deferred financing costs in the third quarter of 2010.