PREIT Recaps Anchor Diversification Success

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Successful disposition and anchor replacement program yield stronger portfolio

Philadelphia, PA, February 8, 2018 PREIT (NYSE: PEI) recapped its anchor tenant exposure following its successful low-productivity mall disposition and anchor remerchandising initiatives, resulting in a stronger portfolio and in line with the Company’s capital allocation strategy.

In anticipation of the rapidly shifting retail landscape, PREIT improved the quality of its portfolio by selling low-productivity assets.  The Company has successfully sold 17 underperforming malls.

The Company also executed on an aggressive plan to replace department stores.

  • As 2017 kicked off, PREIT had 11 vacant anchors.
  • During 2017 and January 2018, 5 of these anchors have been replaced with operating tenants
  • As we move into February 2018, PREIT has executed leases for 4 additional replacements
  • This leaves 2 vacancies, both with leases pending execution.

In addition to replacing anchors rapidly, PREIT has incorporated a diverse mix of tenants in both anchor and in-line space in anticipation of the continued evolution of the use of mall space.  A year of record new leasing activity, in 2017 we executed new leases for over 75% more space than in 2016.

A snapshot of new tenants, either signed or opened across several in-demand retail segments includes:


Segment Brand Property
Off-Price Burlington Magnolia Mall

Fashion District Philadelphia

HomeGoods Viewmont Mall

Magnolia Mall

Five Below Magnolia Mall

Mall at Prince Georges

DSW Mall at Prince Georges

Sierra Trading

Moorestown Mall
Entertainment Dave & Buster’s Springfield Town Center (expansion)

Capital City Mall

LEGOLAND Discovery Center Plymouth Meeting Mall
5 Wits Plymouth Meeting Mall
Tilt Patrick Henry Mall

Valley Mall

Movie Theater Willow Grove Park (pending)
Fitness CYCLEBAR Plymouth Meeting Mall
Onelife Fitness Valley Mall
Sporting Goods/Recreation DICK’s Sporting Goods Capital City Mall

Viewmont Mall

Field & Stream Viewmont Mall
Fast Fashion Zara Cherry Hill Mall
H&M Magnolia Mall

Wyoming Valley Mall

Dartmouth Mall

PREIT’s remaining Department Store exposure bears detailing as the Company has significantly pared its exposure to any specific brand:

Department Store 12/31/2012

Store Count


Store Count

Bon Ton 10 2
JC Penney 31 16
Macy’s 25 14
Sears (1) 27 8

(1) 12/31/17 store count includes Willow Grove Park which is largely sub-leased to PRIMARK.

Having executed on our anchor transformation strategy ahead of the sector, we are pleased by the lack of new department store closures in our portfolio and believe our ability to quickly replace those that did close is evidence of the strength of our new portfolio,” said Joseph F. Coradino, CEO of PREIT. “2017 was another transformative year for PREIT and we will continue to proactively redefine the mall experience to fuel traffic, grow sales and drive value for our shareholders.


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.

Company Contact:
Heather Crowell
SVP, Strategy and Communications
(215) 454-1241

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