PREIT announces new tenants joining its properties,
further enhancing the quality and diversity of its portfolio
April sales per square foot reach $525; New sales goal established at $550 per square foot
Philadelphia, PA, June 3, 2019 – PREIT (NYSE: PEI) reports that the remerchandising of its portfolio continues to yield results and mitigates the impact of store closings. April comparable store sales were up to $525 per square foot in PREIT’s core mall portfolio with three properties now topping $600 per square foot and Willow Grove Park exceeding $750 per square foot. In the face of announced store closings, the Company reports that the recently announced liquidation of the dressbarn chain does not impact the Company’s core mall portfolio. Highlighting the appeal of its portfolio, at the recent industry deal-making convention- ICSC RECon – PREIT hosted over 100 meetings with potential new-to-portfolio brands, a key measure of success for the Company.
The strength of the portfolio is indicated by new-to-portfolio tenants, further establishing its properties as top-tier retail, dining and entertainment destinations. PREIT continues to curate a dynamic mix of retail and experiential offerings by introducing new concepts to its portfolio a core element of its strategy.
As dining remains a key component of a transformative mall experience, PREIT is adding three new restaurants to its portfolio: Black Rock Bar and Grill is expected to open this August at Valley Mall (also opening this Fall at Woodland Mall); Fatburger at Cherry Hill Mall will open this summer; and Miller’s Ale House is set to open in September at Plymouth Meeting Mall (and will follow that with a new location at Mall at Prince George’s). Since 2012, PREIT has increased the space leased to dining and entertainment tenants by 42%.
In addition, PREIT recently celebrated the opening of its first REI at Woodland Mall and will soon add the portfolio’s first A’Beautiful Soul here. A’Beautiful Soul is a sister concept to Altar’d State which recently opened its first location in PREIT’s portfolio at Woodland Mall as well. Sales at Woodland Mall now exceed $600 per square foot, before the full benefits of the redevelopment take effect.
Creating a diverse tenant mix is a key ingredient in today’s rapidly-evolving retail climate,” said Joseph F. Coradino, CEO of PREIT. “We are well positioned with a high-quality portfolio in desirable markets to capture tenants that create a compelling consumer experience. Our newest tenant additions complement our existing portfolio and further drive traffic to our properties.
Earlier this year, PREIT continued its trend of adding unique, high-impact tenants across its portfolio, recently opening new dining experiences such a first-to-market Cheesecake Factory at Woodland Mall and Hash House A Go-Go’s first New Jersey location at Moorestown Mall; as well as a first-of-its kind co-working space/collaborative hub, 1776, at the Cherry Hill Mall.
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.
EVP, Strategy and Communications