The Pennsylvania Real Estate Investment Trust, which owns the Exton Square Mall, saw its shares fall by 27 percent after reporting fourth-quarter earnings that did not meet expectations and warned it may not be able to meet some covenants on its debt, writes Natalie Kostelni for the Philadelphia Business Journal.

The company stated that it’s in active talks with lenders over the issue. It’s looking to modify terms of its debt by the end of next month, so it can stay in compliance, as well as find a long-term solution.

During a conference call earlier this week to discuss quarterly results, some analysts questioned the company’s decision to continue paying out a dividend. However, Joe Coradino, PREIT’s CEO, defended that decision, saying that the 21-cents-a-share dividend is paid through land sales and not from free cash flow.

Coradino also used the opportunity to highlight some of the company’s accomplishments, including emphasizing that 47 percent of its tenants are not traditional mall businesses such as dining, off-price merchants, and fitness.

“We’re on a mission to prove that malls have a bright future,” said Coradino.

Read more about PREIT in the Philadelphia Business Journal here.

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