PHILADELPHIA, Feb. 8, 2018 /PRNewswire/ -- 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
|
HomeSense
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
|
Current
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."
About PREIT
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.
CONTACT:
Heather
Crowell
SVP, Strategy and Communications
(215) 454-1241
heather.crowell@preit.com
View original content with
multimedia:http://www.prnewswire.com/news-releases/preit-recaps-anchor-diversification-success-300595264.html
SOURCE PREIT