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.

PREIT has a primary focus on the ownership and management of differentiated retail shopping malls crafted to fit the dynamic communities they serve. The Company operates properties in 12 states in the eastern U.S. with concentration in the Mid-Atlantic and Greater Philadelphia region. The Company is headquartered in Philadelphia, Pennsylvania. More information about PREIT can be found at www.preit.com or on Twitter or LinkedIn. (PRNewsFoto/PREIT) (PRNewsFoto/)

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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