Core Mall Comparable Sales Reach Record-High $618 per square foot
PHILADELPHIA, March 29, 2022 /PRNewswire/ -- PREIT (NYSE: PEI) (the "Company"), a leading real estate investment trust focused on creating thoughtful, community-centric properties, provided an update on key activities continuing to signal consumer and tenant demand.
February Core Mall Comparable Sales per square foot hit an all-time high at $618. Over 60% of the portfolio is generating sales productivity in excess of $550 per square foot, a clear indicator of the success tenants are finding in PREIT's portfolio. Leading the growth over January results are: Mall at Prince George's, Springfield Town Center, Moorestown, Jacksonville and Capital City Malls.
Key tenants continue to open across the portfolio, resulting from this success.
Recently, Marc Cain, an elite women's ready-to-wear brand hailing from Germany, opened at Cherry Hill Mall and HomeGoods opened their store at Cumberland Mall last week.
Looking ahead, exciting things are on the horizon across the portfolio:
Eddie V's, Warby Parker, Deo Eyewear and M2O Burgers are slated to open at Cherry Hill Mall. Cherry Hill Mall will now boast one of the best restaurant lineups on the east coast.
Lego Discovery Center at Springfield Town Center, which will be the first of this brand new prototype in the entire country. This addition helps fulfill the vision for STC – differentiating it among other DC-area retail properties and becoming a trophy in its own right.
Tilted 10 is expected to replace JC Penney at Willow Grove Park, joining expanding local businesses and filling an entertainment void at the property. BBQ Unlimited, a family-owned business regularly recognized as one of the best barbecue locales in the region, joined the lineup earlier this year and Slime Time Entertainment, an interactive slime lab for families, plans to open soon.
Phoenix Theatres is expected to open a new state-of-the art movie theatre in April at Woodland Mall, joining recent new-to-region additions Offline by aerie, Rose & Remington and Lovisa. This Theatre replaces a 2nd run theater and matches the quality of the upgrades we have made at the property including the region's only Apple, Cheesecake Factory and Von Maur.
"Delivering new tenants to our communities and creating these refreshed environments has continued to drive consumer interest leading to impressive sales growth for our tenants, allowing us to continue to attract unique-to-market destinations," said Joseph F. Coradino, Chairman and CEO of PREIT. "Our expectation is that improving fundamentals will lead to better valuations and debt reduction through increased opportunities to raise capital."
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, 2020. We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.
EVP, Strategy and Communications
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