By Chris Isaac

The damage that COVID-19 has inflicted on the finances of PREIT, the parent company of malls in Plymouth Meeting and Willow Grove, continues to pile up, with their stock values now dipping dangerously low, as reported by Jacob Adelman of the Philadelphia Inquirer.

PREIT’s trading price has sunk below $1, putting it in jeopardy of being removed the New York Stock Exchange.

For a company to qualify for listing on the NYSE, it must have a value of $1 or more for 30 consecutive days. PREIT’s stock value has sunk to as low as $0.51 in the last month and has barely seen any increase. PREIT has been warned that if they can’t meet the NYSE’s requirement, they will face being removed from the list.

Not being listed on the NYSE makes it difficult to garner new investors, as many buyers don’t bother looking at unlisted stocks due to how little value they have. This means being delisted could worsen PREIT’s already challenging financial struggles.

Heather Crowell, the spokesperson for PREIT, addressed the matter, saying, “The effects of COVID-19 continue to ripple across the Greater Philadelphia region, and perhaps most notably in the commercial and retail sectors. We are taking all necessary steps to regain compliance, without disruption to our business operations.”

Nick Shields, an analyst with investment-research firm Third Bridge, spelled out the alternative quite plainly. “It signals that unless something drastically changes, they’re probably headed for restructuring or bankruptcy.”

PREIT certainly is not rolling over and allowing that to happen without a fight, though. The group has been persistent and innovative with efforts to bring customers back once their malls reopened. However, the situation with the NYSE now puts a clock on PREIT’s efforts to rebound before they suffer another big blow in being delisted.

To learn more about this story you can check out the Philadelphia Inquirer article by clicking here.

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