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:
Fashion District Philadelphia
|Five Below||Magnolia Mall
Mall at Prince Georges
|DSW||Mall at Prince Georges|
|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
|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
|Field & Stream||Viewmont Mall|
|Fast Fashion||Zara||Cherry Hill Mall|
Wyoming Valley Mall
PREIT’s remaining Department Store exposure bears detailing as the Company has significantly pared its exposure to any specific brand:
(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.
SVP, Strategy and Communications