Portfolio Quality Underscored by April Sales and Strong Leasing Activity at Key
Assets
PHILADELPHIA, June 9, 2022
/PRNewswire/ -- PREIT (NYSE: PEI) (the "Company"), a leading
real estate investment trust highlighted continued sales, traffic
and leasing momentum across its portfolio.
Traffic, sales and leasing activity at Cherry Hill Mall,
Springfield Town Center and Woodland Mall demonstrate the strength
of PREIT's portfolio despite continued inflationary pressure on
consumers. Across these three properties, traffic through May
was up nearly 10% over last year, rolling 12-month comparable sales
grew by over 3% since the end of 2021 and leasing volume represents
nearly 50% of portfolio new leasing activity year-to-date.
These results are indicative of the momentum-building strategies,
centered around a strong and relevant tenant mix, the PREIT team
employs.
At Cherry Hill Mall, PREIT's crown jewel where many new tenants
enter the Philadelphia market,
sales have improved to $944 per
square foot, up from $936 as of
December 31, 2021. To date,
PREIT has executed new leases with nearly 45,000 square feet of
tenants yet to open on the heels of the opening of new-to-portfolio
additions, Warby Parker and
Marc Cain, earlier this year.
At Springfield Town Center, PREIT continues the transformation
of the property into a vibrant multi-use hub and entertainment
destination complete with amenities to complement top-notch
restaurants, entertainment destinations that include the Regal
Cinema, Dave & Buster's and the region's only Lego Discovery
Center expected to open in 2023. Sales per square foot are up
to $580 compared to just $558 at year end 2021. Leasing activity has
been robust accounting for one third of the portfolio activity.
Woodland Mall underwent a transformative redevelopment that was
completed in 2019 and has experienced tremendous demand from
consumers and tenants, with sales up 5.6% over year end to
$667 per square foot. In 2021,
the mall welcomed many new-to-portfolio tenants including Rose and
Remington, Lovisa and Offline by aerie. This past April,
Phoenix Theatres reinvented the moviegoing experience at the
property.
"Our strategic portfolio management strategy designed to own
top-tier assets in top suburban markets and the top retail
destinations in secondary markets continues to yield results," said
Joseph F. Coradino, PREIT's Chairman
and CEO. "We have attracted new tenants and uses to key
locations which fuels consumer demand which leads to success for
our tenants and drives the value of our properties."
About PREIT
PREIT (NYSE:PEI) is a publicly traded real estate investment
trust that owns and manages innovative properties developed to be
thoughtful, community-centric hubs. PREIT's robust portfolio of
carefully curated, ever-evolving properties generates success for
its tenants and meaningful impact for the communities it serves by
keenly focusing on five core areas of established and emerging
opportunity: multi-family & hotel, health & tech, retail,
essentials & grocery and experiential. Located primarily in
densely-populated regions, PREIT is a top operator of high quality,
purposeful places that serve as one-stop destinations for customers
to shop, dine, play and stay. Additional information is available
at www.preit.com or on Twitter, Instagram 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, the effectiveness of strategies we may
employ to address our liquidity and capital resources in the
future, 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 bankruptcies, consolidation and store
closings, particularly among anchor tenants; current economic
conditions, including consumer confidence and spending levels and
supply chain challenges and the impact of the COVID-19 pandemic and
the public health and governmental response as well as 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; social
unrest and acts of vandalism and violence at malls, including our
properties, or at other similar spaces, and the potential effect on
traffic and sales; the frequency, severity and impact of extreme
weather events at or near our properties; 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, 2021. We do not intend to update or
revise any forward-looking statements to reflect new information,
future events or otherwise.
Contact:
Heather
Crowell
heather@gregoryfca.com
preit@gregoryfca.com
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SOURCE PREIT