PHILADELPHIA, PREIT (NYSE: PEI) highlighted near-term events supporting future growth and strengthening its portfolio.
Milestone 2019 Events:
- Fashion District Philadelphia – 900,000 square foot dynamic project featuring tenancy and programming across style, dining, entertainment, and arts & culture uses opens 9/19/19. Leases for approximately 90% of the space are signed or are in active negotiation. Noteworthy tenants joining the roster include H&M, Nike, Forever 21, AMC Theaters, Round One, City Winery, Ulta, Columbia Sportswear, Wonderspaces, American Eagle, Express Factory, Journeys, Skechers and Guess Factory along with local incubator spaces – REC Philly and Uniquely Philly, which features four distinct local, small businesses.
- Plymouth Meeting Mall – Macy’s replacements, DICK’s Sporting Goods, Burlington, Miller’s Ale House, Roll by Goodyear, opening in September along with Edge Fitness opening in October
- Woodland Mall – Von Maur department store, Urban Outfitters, Tricho Salon, Williams-Sonoma, Bath & Body Works, Black Rock Bar & Grill and The Cheesecake Factory opening in October
More programmed for 2020:
- Moorestown Mall – Planet Fitness will open in the mall in and Michaels will join HomeSense, Sierra and Five Below in the former Macy’s store in Spring 2020.
- Valley Mall – DICK’s Sporting Goods will replace Sears in Spring 2020
- Dartmouth Mall – Burlington will replace Sears in Spring 2020
PREIT’s remerchandising and tenant diversification efforts have driven results across the platform with sales and traffic growth being reported at properties that have already received remerchandising treatment. Examples of this include:
- At Capital City Mall, we replaced a Sears store with DICK’s Sporting Goods, PA Fine Wine and Premium Spirits and Primanti Bros. as well as added the only Dave & Buster’s in the region. Comparable sales are up 8.2% compared to before we started the development and traffic is up 9.4% on a year-to-date basis.
- At Mall at Prince Georges, we overhauled the inline tenant mix to bring in an assortment better aligned with the customer base. New tenants included: ULTA, DSW, Chipotle, Five Guys, & Pizza, H&M and Express Factory. Comparable sales are up over 23% and NOI is up over 20%.
“Several years ago, we defined a strategic goal to improve the quality of our portfolio and set upon a course which included disposition of lower-quality assets, anchor replacements, redevelopment and inline remerchandising. All of these steps have had the desired result of increasing sales, traffic and portfolio quality,” said Joseph F. Coradino, CEO of PREIT. “We are now at the precipice of delivering earnings growth as major projects come online that will serve to further strengthen our portfolio with two new trophy assets.”
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.
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