May08

PREIT Strengthens Portfolio with Anchor Replacement Program

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Five Anchor leases signed to date in 2017

PHILADELPHIA PA, May 8, 2017 – PREIT (NYSE: PEI) today discussed its effort to continue to improve its portfolio through its anchor replacement and tenant diversification program.

Since the beginning of 2017, PREIT has executed 5 new anchor leases with 5 different tenants.

A snapshot of PREIT’s current anchor transition activity:

  • 9 anchors locations are currently in transition in the portfolio
  • 7 replacement tenants are under construction
  • 5 of the replacement anchors will be paying rent before the end of 2017

In 2016, PREIT replaced 2 former anchor locations:

  • At Cumberland Mall in Vineland, NJ, PREIT further differentiated this hybrid property by adding a DICK’s Sporting Goods to replace a JC Penney store.
  • At Exton Mall in Exton, PA, Round 1 Entertainment now operates in a former JC Penney store. The entertainment facility has become the #2 entrance into the mall since its opening.

Anchor spaces under construction for 2017 openings include:

  • At Viewmont Mall in Scranton, PA a combination DICK’s Sporting Goods and Field & Stream store is currently under construction along with HomeGoods. All three stores will open in Q4 17 and will replace a former Sears store that PREIT gained control of in 2016.
  • At Capital City Mall in the Harrisburg, PA market, DICK’s Sporting Goods is under construction and will open in Q4 17, replacing a former Sears store that the Company proactively recaptured.
  • At Magnolia Mall in Florence, SC, Burlington will open in Q4 17, replacing another former Sears that was proactively recaptured.
  • At Valley View Mall, in Lacrosse, WI, Herberger’s Department Store will open in Q4 17 in a former Macy’s store.

PREIT was an early mover in its proactive anchor repositioning program and has found much success in attracting a diverse mix of tenants, indicative of the quality portfolio we have created,” said Joseph F. Coradino, CEO of PREIT. “As the retail format lines continue to blur, we are capitalizing on owning quality properties in the best locations in their markets, capturing a wide variety of tenant interest. At the same time, we are systematically reducing exposure to select department stores, driving increased Net Operating Income and enhancing the consumer experience thereby creating long term shareholder value and driving NAV.

 About PREIT

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets.  PREIT’s 23 million square feet of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the 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.

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