Addition of Planet Fitness highlights PREIT’s focus on tenant diversification through investment in the health and wellness industry
Philadelphia, PA, August 21, 2019 – As PREIT (NYSE: PEI) furthers its strategic approach in bolstering health and wellness segments at its properties, the company today announced the addition of Planet Fitness at the Moorestown Mall. Slated to open in Spring 2020, Planet Fitness, occupying more than 23,000 square feet, will represent another key addition to the PREIT roster – which now has increased the square footage dedicated to health and wellness tenancy by five times since 2012.
Planet Fitness is a full-service, high-quality fitness experience for all gym-goers. Ranging from free weights, to cardio, to personalized exercise programs and small group trainings, Planet Fitness creates an environment unique to all its members, and one that complements Moorestown Mall’s Orangetheory Fitness, and other health and wellness-centric offerings.
The International Health, Racquet & Sportsclub Association (IHRSA) reports that gym membership is up 2.6% from 2017, and up 26% since 2009. As the industry continues to boom, PREIT has identified opportunities to meet the needs of its consumers through traditional and up-and-coming health and wellness options.
“Gym-goers today are focused on the fitness journey – they’re not just going to the gym, but buying attire that suits their athletic style and seeking healthier eating alternatives,” said Joseph F. Coradino, CEO of PREIT. “We want to provide local consumers with more reasons to choose the mall as their go-to destination for activities that suit their lifestyle. With the addition of Planet Fitness, we’re continuing to add health and wellness tenants supporting the all-encompassing experience offered by our properties as consumer interests expand well beyond soft goods.”
At Moorestown Mall, results have been strong:
- Rent generated in the former Macy’s store is 19 times the prior revenue.
- Traffic has improved by 5.7% through June 30, 2019 compared to the first six months of 2018.
Since 2008, fitness center leasing in malls has tripled on a square footage basis, according to research firm CoStar Group. PREIT has recognized the growing demand in this segment and strengthened its portfolio to include a variety of health-oriented concepts, most recently incorporating Onelife Fitness at Valley Mall, Peloton at Cherry Hill Mall and Edge Fitness opening this Fall at Plymouth Meeting Mall.
As the mall offerings evolve, Moorestown Mall is an interesting case study that has recently enhanced its tenant mix to include new restaurants to complement a productive Harvest Seasonal Grill, YardHouse and Regal Cinema, rounding out a dining and entertainment component as well as a blend of new-to-market off price venues offering branded merchandise at a discount in the former Macy’s location – HomeSense, Sierra and Five Below with Michaels Arts and Crafts joining the roster in 2020.
Moorestown Mall is home to a unique mix of tenants including award-winning Rizzieri salon and spa, over $25 million in dining and entertainment sales and popular retail brands including H&M, Express, Foot Locker, Hollister, Victoria’s Secret and many 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.