PREIT Executes New Leases with New-to-Portfolio Tenant Love Culture
Fashion retailer set to open at four properties, further diversifying their mix of offerings and bringing new, in-demand concepts to PREIT’s portfolio
Philadelphia, PA, October 2, 2018 – PREIT (NYSE: PEI) today announced a series of transactions with Love Culture, a new-to-portfolio fashion retailer, at four of its properties. The Company has executed flexible leases with the trend-oriented retailer at Viewmont Mall in Scranton, PA; Woodland Mall in Grand Rapids, MI; Patrick Henry Mall in Newport News, VA; and Willow Grove Park in Willow Grove, PA – further advancing its merchandise differentiation initiative, refreshing its malls with ever-changing and sought-after offerings. Love Culture is anticipated to open these four locations in advance of the holiday season.
Love Culture features bold, on-trend pieces, inspired by celebrities and the runway at affordable prices, and an extensive online store. The expansion of their store base is another example of retailers recognizing the vital bridge between on and offline sales efforts.
As PREIT continues to drive change in the traditional mall model, a key element of its strategy is bringing new tenants to its portfolio. Other recently signed new tenants joining the PREIT portfolio are: REI, Peloton, Altar’d State, Studio Movie Grill, Edge Fitness, 1776, Ardene, Fatburger and Hash House A Go-Go.
At Viewmont Mall, Love Culture is the latest in-demand concept joining the roster at Viewmont Mall, which welcomed DICK’S Sporting Goods, Field & Stream and HomeGoods as new anchors in 2017. At Woodland Mall, the new tenant comes on the heels of the opening of the newly remodeled and expanded Apple store and the announcement of several milestones in the redevelopment of the property including the addition of other new-to-market retailers such as Altar’d State, opening this month, and 2019 additions of Von Maur, Urban Outfitters and REI as part of its reimagination. At Patrick Henry Mall, Love Culture will join popular fast-fashion retailers Forever21 and H&M along with new dining and entertainment offerings – Osaka Japanese and Tilt Studio. At Willow Grove Park, Love Culture joins an esteemed tenant roster including Apple, Bloomingdales and Michael Kors, among others.
Our remerchandising strategy is focused on identifying and attracting coveted retail brands to our portfolio – concepts that will not only appeal to consumers, but differentiate our properties within their markets. As our portfolio has become more attractive, through the sale of lower-productivity assets and our robust anchor repositioning effort, we continue to attract a new slate of tenancy and position our properties with a dynamic mix of offerings with broad appeal..
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.
SVP, Strategy & Communications