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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) April 14, 1999
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Pennsylvania Real Estate Investment Trust
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(Exact Name of Registrant as Specified in Charter)
Pennsylvania 1-6300 23-6216339
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
The Bellevue, 200 S. Broad Street, Philadelphia, Pennsylvania 19102
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (215) 875-0700
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. OTHER EVENTS
Pennsylvania Real Estate Investment Trust issued a press release on
April 14, 1999 announcing that it had completed the financing of eight
multifamily communities with $108 million of permanent, fixed-rate, long-term
debt. The content of the press release was as follows:
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
COMPLETES $108 MILLION LONG-TERM FINANCING
FINANCING FACILITATES 1999 DEVELOPMENT PROGRAM
PHILADELPHIA, PA, April 14 -- Pennsylvania Real Estate Investment Trust (NYSE:
PEI) announced today that it has completed the financing of eight multifamily
communities with $108 million of permanent, fixed-rate, long-term debt.
With the financing, PREIT replaced short-term floating rate debt with fixed
rate, mortgage debt. The newly placed loans carry a weighted average fixed
interest rate of 6.77%, equating to a spread of 158 basis points over the yield
on the ten year United States Treasury at the time that the rates were locked.
The eight properties (see below) secure non-recourse loans which amortize over
30 years and mature in May 2009. Proceeds from the transactions were used to pay
off a short-term, floating rate loan of $17 million, which is secured by the
recently acquired Northeast Tower Center in Philadelphia, Pa. The balance of the
proceeds, approximately $88 million, will be used to paydown the Company's line
of credit. After the paydown, approximately $60 million of the Company's $150
million line of credit will be in use. GMAC Commercial Mortgage originated the
permanent mortgage debt.
Commenting on the financing, Edward A. Glickman, the Company's Executive Vice
President and Chief Financial Officer said, "After exploring several options to
expand our line of credit, we concluded that placing long-term financing on a
portion of our multifamily portfolio achieved the lowest cost of financing. The
spread of 158 basis points was particularly attractive compared with alternative
financing options. The proceeds were used to pay off a short-term loan from a
recent acquisition and to reduce our line of credit. The result is new capacity
on the line of credit with no change in the overall leverage of the Company,
enabling PREIT to fund its 1999 development projects and other high value-added
opportunities."
Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first
equity REITs in the U.S., has a primary investment focus on shopping centers
(8.0 million square feet) and apartment communities (7,243 units) located
primarily in the eastern United States. The Company's portfolio currently
consists of 48 properties in 10 states. In addition, there are 5 retail
properties under development. Pennsylvania Real Estate Investment Trust is
headquartered in Philadelphia, Pa.
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Property List
<TABLE>
<CAPTION>
Property Location Units Loan Amount(1)
<S> <C> <C> <C>
Boca Palms Apartments Boca Raton, FL 522 $22,600,000
Cobblestone Apartments Pompano Beach, FL 384 13,850,000
Palms of Penbroke Pembroke Pines, FL 348 16,600,000
Marylander Apartments Baltimore, MD 508 12,300,000
Hidden Lakes Apartments Dayton, OH 360 10,700,000
Kenwood Gardens Toledo, OH 504 7,250,000
Lakewood Hills Apartments Harrisburg, PA 562 18,750,000
2031 Locust Street Philadelphia, PA 87 5,950,000
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3,275 $108,000,000
</TABLE>
(1) Each loan is non-recourse and the loans are not cross-collateralized.
With the except of the historical information contained in the release, the
matters described herein contain forward-looking statements that are made
pursuant to the Safe Harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such statements involve various risks and may cause actual
results to differ materially. These risks include, but are not limited to, the
ability of the Company to grow internally or by acquisition, and to integrate
acquired businesses, changing industry and competitive conditions, and other
risks outside the control of the Company referred to in the Company's
registration statement and periodic reports filed with the Securities and
Exchange Commission.
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Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
Date: April 23, 1999 By: /s/ Jonathan B. Weller
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Jonathan B. Weller
President and Chief Operating Officer
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