PREIT touts no unleased department stores in its core portfolio
Philadelphia, PA, July 22, 2019 – PREIT (NYSE: PEI) today reiterated its successful track record of replacing department stores amid tumult in the sector:
“PREIT has been steadfast and deliberate in delivering results through its anchor replacement initiatives and is proud of its track record, having no unleased department stores in its core portfolio,” said Joseph F. Coradino, CEO of PREIT. “With no ancticipated JC Penney closings on the horizon and among the lowest exposure to Sears in the sector, we are uniquely positioned to execute on our strategy and capitalize on the opportunity to strengthen our earnings growth as material projects come on line this Fall.”
As further validation of our strategy, traffic at our recently remerchandised properties continues to be strong. Year to date through June 30, 2019, the following recently remerchandised properties saw the following increases in foot traffic compared to the six months ended June 30, 2018:
o Capital City Mall: +9.4%
o Moorestown Mall: +5.7%
o Mall at Prince George’s: +2.3%
o Valley Mall: +2.1%
Comparable Sales in the Company’s core portfolio were up 5.3% to $530 per square foot for the rolling 12 month period ended May 31, 2019.
With no unleased department stores in its core mall portfolio, PREIT is leading the way in reshaping the national shopping experience having replaced 13 department stores in 3 years in an active core portfolio of 18 properties, defining the Company as the most successful landlord in navigating recent retail disruption. In these 13 stores, PREIT welcomes over 30 new tenants spanning a variety of consumer categories: off-price, sports & leisure, fitness, arts & crafts, dining & entertainment, home décor as well as traditional department stores.
PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT’s robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely-populated eastern U.S. with concentrations in the mid-Atlantic’s top MSAs. Since 2012, the company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capital expenditures. Additional information is available at www.preit.com or on Twitter or LinkedIn.
Forward Looking Statements
This press release contains certain forward-looking statements that can be identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “project,” “intend,” “may” or similar expressions. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect our current views about future events, achievements or results and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. In particular, our business might be materially and adversely affected by changes in the retail and real estate industries, including consolidation and store closings, particularly among anchor tenants; current economic conditions and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions; our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; our ability to maintain and increase property occupancy, sales and rental rates; increases in operating costs that cannot be passed on to tenants; the effects of online shopping and other uses of technology on our retail tenants; risks related to our development and redevelopment activities, including delays, cost overruns and our inability to reach projected occupancy or rental rates; acts of violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales; our ability to sell properties that we seek to dispose of or our ability to obtain prices we seek; our substantial debt and the liquidation preference of our preferred shares and our high leverage ratio; our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; our ability to raise capital, including through sales of properties or interests in properties and through the issuance of equity or equity-related securities if market conditions are favorable; and potential dilution from any capital raising transactions or other equity issuances. Additional factors that might cause future events, achievements or results to differ materially from those expressed or implied by our forward-looking statements include those discussed herein and in our Annual Report on Form 10-K for the year ended December 31, 2018 in the section entitled “Item 1A. Risk Factors.” We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.