Monday, April 13, 2020

PREIT Applies for CARES Act Funding in Response to Mall Closures Caused by Coronavirus

by John Jordan
With its mall properties shuttered due to the Coronavirus, PREIT reports it has furloughed some corporate and property staff and applied for stimulus funding available through the CARES Act.

The unspecified funding amount is being pursued through the Paycheck Protection Plan, which is being administered jointly by the Treasury and the SBA. The retail REIT operates properties in 12 states in the eastern U.S. with concentration in the Mid-Atlantic and Greater Philadelphia region.
Last week, PREIT furloughed 37% of its staff via temporary suspension or hours reduction. The furlough impacted 41 of its corporate office workers and 62 of its property employees. The company continues to provide benefits to the impacted employees, according to its announcement released on Wednesday.

“The task ahead of us all is to make every effort to bring health and wellness to the communities we serve and support one another in our pursuit of regaining normalcy,” said Joseph F. Coradino, chairman and CEO of PREIT. “Malls are a vital part of local economies, employing thousands and providing meaningful tax contributions to their municipalities. PREIT continues to make strides in positioning the company and our partners for future success.”

In terms of its application for federal Coronavirus stimulus funding, the Philadelphia Inquirer reports that based on its payroll, including compensation calculated at up to $100,000 per year for each staffer, PREIT would likely be eligible for the maximum $10 million.

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