PHILADELPHIA, Oct. 13, 2021 /PRNewswire/ -- PREIT (NYSE: PEI),
a leading real estate investment trust focused on creating
thoughtful, community-centric properties, today announced continued
strong metrics in traffic, sales and collections. By analyzing the
needs of each community and developing customized solutions across
its portfolio, PREIT properties have emerged from the pandemic with
resiliency driven by new anchors and a diverse tenant base.
The results PREIT is achieving through this customized approach
speak to its success:
Traffic – On average during the month of September,
traffic throughout PREIT's core portfolio recorded its highest
comparison to 2019 at nearly 94 percent with five properties
continuing to generate traffic at or above 2019 levels for the
month.
Woodland Mall exemplifies one of PREIT's standout properties –
consistently exceeding 2019 traffic on a monthly basis since
widespread vaccine availability in April. The redevelopment of this
property in 2019 brought new and exciting tenants to the market,
including The Cheesecake Factory and Black Rock Bar & Grill,
joining a tremendous existing retail lineup: REI, Sephora, Lush,
Williams-Sonoma, Pottery Barn, Von
Maur, Urban Outfitters, Altar'd State and Apple.
Sales – For the month of August, PREIT Core Mall
comparable tenants generated a 9 percent increase in sales over the
same month in 2019. Over 80 percent of PREIT's managed
properties generated sales growth over the comparable period prior
to the mall closures.
Collections – As tenant business continues to
thrive, September registered the highest current month collections
rate since the pandemic began at 92 percent. For the month of
September, cash collections, which include payment of prior month
and deferred rents, were 116 percent.
Looking ahead, experts are predicting a robust 2021 Holiday
Season:
- Deloitte notes that "Holiday retail sales are likely to
increase between 7% and 9% in 2021, according to Deloitte's annual
holiday retail forecast."
- According to Chain Store Age, "JLL's annual holiday survey
found that 58% of shoppers plan to shop in stores or do some form
of shopping involving a physical store this holiday."
- And while consumers are reportedly shopping earlier this year,
according to KPMG's consumer pulse survey for the holiday
season of 2021, of more than 1,000 consumers, 32% plan to shop in
person on Black Friday this year, compared with 16% last year.
"By listening to our customers, we have leveraged our
exceptional portfolio of real estate and industry
expertise to meet the needs of the communities we are serving,
attract new consumers and create ongoing success for our tenants,"
said Joseph F. Coradino, CEO of
PREIT. "We continue to be optimistic about the pace of recovery and
consumer sentiment and we will continue to seek ways to create
value for our stakeholders."
About PREIT
PREIT (NYSE:PEI) is a publicly traded real estate investment
trust that owns and manages innovative properties at the forefront
of shaping tailored consumer experiences. PREIT's robust portfolio
of carefully curated retail and lifestyle offerings mixed with
destination dining and entertainment experiences are located
primarily in densely-populated, with tremendous opportunity to
create vibrant multi-use destinations. 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 expectations and assumptions regarding our business, the
economy and other future events and conditions and are based on
currently available financial, economic and competitive data and
our current business plans. Actual results could vary materially
depending on risks, uncertainties and changes in circumstances that
may affect our operations, markets, services, prices and other
factors as discussed in the Risk Factors section of our other
filings with the Securities and Exchange Commission. While we
believe our assumptions are reasonable, we caution you against
relying on any forward-looking statements as it is very difficult
to predict the impact of known factors, and it is impossible for us
to anticipate all factors that could affect our actual results.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements include,
but are not limited to, our ability to achieve our forecasted
revenue and pro forma leverage ratio and generate free cash flow to
further reduce our indebtedness; our ability to manage our business
through the impacts of the COVID-19 pandemic, a weakening of global
economic and financial conditions, changes in governmental
regulations and related compliance and litigation costs and the
other factors listed in our SEC filings. Additionally, 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, including the impact of the COVID-19 pandemic and the
steps taken by governmental authorities and other third parties to
reduce its spread, 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 and our ability to remain in compliance with our
financial covenants under our debt facilities; 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 the sections entitled "Item 1A. Risk Factors" in our Annual
Report on Form 10-K for the year ended December 31, 2020. We do not intend to update or
revise any forward-looking statements to reflect new information,
future events or otherwise.
Contact:
Heather Crowell
EVP, Strategy and Communications
(215) 454-1241
heather.crowell@preit.com
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