Lease executed at premier asset to replace JCPenney;
Highlights PREIT’s focus on tenant diversification through investment in dining and entertainment
Philadelphia, PA, August 6, 2018 – PREIT (NYSE: PEI) today announced the addition of Studio Movie Grill at Willow Grove Park, replacing the former JC Penney, further diversifying and enhancing the mall’s tenant roster with an exciting experiential tenant. Slated to open in 2019, Studio Movie Grill represents the latest accomplishment in PREIT’s comprehensive and strategic anchor repositioning program – marking 11 announced department store replacements solidified since the beginning of 2017.
Studio Movie Grill combines first-run movies with in-theater dining from an extensive menu and full-service bar. At the push of a button, moviegoers can place an order directly from their seat, with food and beverages delivered before and during the show. Additionally, the theater offers various dining options, including tableside, counter space, lounge seats with tray tables, and reclining lounges with built-in tray tables. Customers can reserve seats when purchasing a ticket online, at a theater kiosk, or the box office.
“Today’s mall experience is an opportunity for shopping, entertainment and socializing, and PREIT’s investments in experiential concepts are enabling our offerings to evolve alongside our shoppers’ habits,” said Joseph F. Coradino, CEO of PREIT. “Studio Movie Grill offers entertainment and dining that elevates the consumer experience, and by welcoming the theater to Willow Grove Park, we’re providing local shoppers with more reasons to extend their mall visit.”
Offering 12 screens and filling a market void, Studio Movie Grill will occupy a portion of the former JCPenney space. Based on third party research data, Willow Grove Mall shoppers are 87% more likely to attend a movie 4 or more times over a three-month period than others in the Philadelphia area. This transaction underscores PREIT’s commitment to evolving its properties through the addition of diverse uses, in particular social experiences such as dining and entertainment, segments that currently making up over 20 percent of the Company’s portfolio. As the retail landscape continues to evolve, PREIT is attracting dynamic, in-demand concepts – including experiential, off-price, and health & wellness, as well as others – to its properties to further differentiate and reimagine the mall experience.
Located in the Philadelphia suburbs, Willow Grove Park boasts sales of over $700 per square foot. The mall is home to one of two Bloomingdale’s and Primark locations in the Philadelphia metro, as well as a diverse and sophisticated merchandising mix including Apple, Michael Kors, PANDORA, Sephora and The Cheesecake Factory, among others.
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, 2017 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.