PHILADELPHIA, April 18, 2018 /PRNewswire/ -- PREIT (NYSE:
PEI) today showcased the results of its portfolio improvement
effort in response to Bon-Ton's planned liquidation,
differentiating the REIT from its mall peers.
PREIT's proactive anchor replacement program has been a critical
differentiator for its portfolio, minimizing the Company's exposure
to challenged department stores with only two Bon-Ton stores
that will be impacted by this announcement. PREIT has a
proven ability to replace department stores and has retailer
interest on the two Bon-Ton boxes.
From January 2017 to March 2018, PREIT has successfully outlined plans
for 11 vacant anchors, with five new anchors open and operating;
executed leases for four additional replacements – including Belk
replacing Bon-Ton at Valley Mall, opening fall 2018; Leases pending
for remaining two anchors. The result of this initiative is 17
sought-after tenants, spanning seven diverse uses, paying rents
eight times greater than the space was previously generating.
"PREITs portfolio repositioning effort is paying off with strong
year to date sales trends, an improved demographic profile and
continued success in our anchor enhancement strategy," said
Joseph F. Coradino, CEO of
PREIT.
Substantiating this point, PREIT noted:
- Year-to-date comparable store sales in its portfolio were up
8.2% through February.
-
- The Company now boasts 8 properties with Rolling 12 month sales
per square foot over $500, over one
third of the Company's operating portfolio.
- Sales increases for the year-to-date period occurred at all
properties with the exception of one.
- Rolling 12 sales per square foot have reached an all-time high
for the portfolio at $483.
Coradino continued, "Over the past several years, PREIT's
strategy has been laser focused on crafting a portfolio of
attractive properties with productive retailers reflecting evolving
consumer habits. In fact, our aggressive disposition and
proactive anchor replacement program has resulted in the lowest
exposure to Bon-Ton within our sector. We have found great
opportunity in replacing department stores and have been leading
the industry in so doing, remerchandising with new concepts to
transform the mall experience and drive traffic."
Complementing the robust anchor repositioning strategy, PREIT's
sector-leading asset disposition program, in addition to generating
proceeds to fund reinvestment in core portfolio, has also reduced
its exposure to struggling retailers. The Company was the first to
execute and complete a large-scale low-productivity mall
disposition program to improve portfolio quality. Since PREIT's
sale of 17 underperforming properties over the past five years, 25
anchor stores in those malls have since closed – validating PREIT's
foresight and keen understanding of the retail marketplace.
As a result of PREIT's effective disposition effort and
proactive anchor replacement strategy, PREIT has reduced its
Bon-Ton exposure from 10 in 2012 to only 2 today.
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.
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.
CONTACT:
Heather
Crowell
SVP, Strategy & Communications
(215) 454-1241
heather.crowell@preit.com
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SOURCE PREIT