PREITs Premier Properties Continue to Grow Sales in the Face of Macro Headwinds
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.”
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.