PREIT achieves near-completion of its non-core mall disposition effort with the sale of four more malls

  • Accentuates successful disposition program and underscores strength of new platform
  • Portfolio sales increase to $458 per square foot, increasing over 20% since 2012

PHILADELPHIA, 2016-Apr-02 — /EPR Retail News/ — PREIT (NYSE: PEI) today announced it has completed the sale of four additional non-core malls, a milestone achievement that signifies the near-completion of the Company’s non-core mall disposition effort with one remaining mall being marketed for sale. In November 2012, the Company communicated its plan to reshape its portfolio by disposing of non-core properties, including its lower-productivity malls, in order to reduce debt, dramatically improve portfolio quality and drive operating results. Since that time, the Company has successfully executed this plan, resulting in the sale of 13 lower-productivity malls as well as several power centers and land parcels, and has generated approximately $600 million in gross proceeds.

Highlights of the improved portfolio fundamentals include:

  • Average sales per square foot of the 13 malls sold were $267 compared to February 29, 2016 sales of$458 per square foot, excluding the properties subsequently sold;
  • Average Gross Rents for the 13 malls sold were$28.82 per square foot, nearly 50% lower than PREIT’s portfolio average of $54.56 per square foot excluding non-core malls;
  • Average non-anchor occupancy for the 13 malls sold at the time of sale was 82.1% which compares to a portfolio average of 92.9% at the end of 2015, excluding non-core malls;
  • The 13 malls that were sold were a drag on the Company’s performance, having generated a decrease in year-over-year Net Operating Income (NOI) of 10%, on average in the year before their respective dispositions.

Today, PREIT announces four, just completed, additional mall disposition transactions, including:

  • Lycoming Mall being sold for $26.35 million. Lycoming Mall in Pennsdale, Pa., is anchored by JC Penney, Sears, Bon-Ton and Macy’s.
  • A three mall package being sold for $66 million, inclusive of $17 million in seller financing. PREIT may also be entitled to $3.5 million of additional consideration for these malls if certain conditions are met in future years. The properties in this transaction are:
    • Gadsden Mall in Gadsden, Ala., which is anchored by Belk, JC Penney and Sears.
    • New River Valley Mall in Christiansburg, Va., which is anchored by Belk, Dick’s Sporting Goods, JC Penney and Kohl’s.
    • Wiregrass Commons Mall in Dothan, Ala., which is anchored by Belk, Burlington Coat Factory, Dillard’s and JC Penney.

The $600 million in gross proceeds has allowed the Company to reduce its overall indebtedness and fund value-creating redevelopment and remerchandising initiatives. Since 2011, PREIT has reduced its total debt by over $300 million and its Bank Leverage from 66.9% to approximately 50% as of December 31, 2015, with an outlined capital plan to drive this below 47% by 2018. The Company has also added one new Premier mall to its portfolio, Springfield Town Center in Springfield, Va., which has strengthened PREIT’s presence in the Washington, D.C., marketplace.

“PREIT has remained steadfastly committed to creating a high-quality portfolio that delivers outstanding results for our shareholders,” said Joseph Coradino, CEO of PREIT. “The disposition of these 13 malls redefines PREIT. With sales of $458 per square foot and remerchandising and redevelopment initiatives under way that provide a clear and realizable path to $500 per square foot, we are now a more compelling platform for retailers and investors, allowing us to continue to drive same-store NOI growth and strong shareholder returns.”

About PREIT
PREIT (NYSE:PEI) is a publicly traded real estate investment trust specializing in the ownership and management of differentiated shopping malls. Headquartered in Philadelphia, Pa., the company owns and operates over 25 million square feet of retail space in the eastern half of the United States with concentration in the Mid-Atlantic region’s top MSAs. Since 2012, the company has driven a transformation guided by an emphasis on balance sheet strength, high-quality merchandising and disciplined capital expenditures. Additional information is available at www.preit.com, on Twitter or LinkedIn.

 

Forward Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the federal securities laws. 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 PREIT’s 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.  Important factors that might cause future events, achievements or results to differ materially from those expressed or implied by PREIT’s forward-looking statements include those discussed in its Annual Report on Form 10-K for the year ended December 31, 2015 in the section entitled “Item 1A. Risk Factors.”  PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

 

CONTACT:
Heather Crowell
SVP, Corporate Communications and Investor Relations
(215) 454-1241
crowellh@preit.com

SOURCE PREIT

Pennsylvania Real Estate Investment Trust to present at the Citi 2016 Global Property CEO Conference

PHILADELPHIA, 2016-Mar-09 — /EPR Retail News/ — Pennsylvania Real Estate Investment Trust (NYSE: PEI) today announced that Joseph Coradino, Chief Executive Officer, and Robert McCadden, Executive Vice President and Chief Financial Officer, will participate in a roundtable presentation at the Citi 2016 Global Property CEO Conference in Hollywood, Florida.

The Company’s roundtable presentation is scheduled forWednesday, March 16, 2016 at 9:30AM Eastern Time. Individuals interested in listening to the presentation should log in to the audio webcast at the following URL:

http://www.veracast.com/webcasts/citigroup/globalproperty2016/06304153242.cfm

A replay of the audio webcast will be available one hour after the conclusion of the live event, and will remain available until June 14, 2016, and can be accessed by using the same URL.

About PREIT
PREIT (NYSE:PEI) is a publicly traded real estate investment trust specializing in the ownership and management of differentiated shopping malls.  Headquartered in Philadelphia, Pennsylvania, the Company owns and operates approximately 27 million square feet of retail space in the eastern half of the United States with concentration in the Mid-Atlantic region’s top MSAs. Since 2012, the company has seen a transformation guided by an emphasis on balance sheet strength, high-quality merchandising and 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” within the meaning of the federal securities laws. 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 uncertainties affecting real estate businesses generally as well as the following, among other factors: our substantial debt, stated value of preferred shares and our high leverage ratio; constraining leverage, interest and tangible net worth covenants under our 2013 Revolving Facility, our 2014 Term Loans and our 2015 Term Loan; potential losses on impairment of certain long-lived assets, such as real estate, or of intangible assets, such as goodwill, including such losses that we might be required to record in connection with any dispositions of assets; changes to our corporate management team and any resulting modifications to our business strategies; our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; our ability to raise capital, including through the issuance of equity or equity-related securities if market conditions are favorable, through joint ventures or other partnerships, through sales of properties or interests in properties, or through other actions; our ability to identify and execute on suitable acquisition opportunities and to integrate acquired properties into our portfolio; our partnerships and joint ventures with third parties to acquire or develop properties; our short- and long-term liquidity position; current economic conditions and their effect on employment, consumer confidence and spending and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions and on our cash flows, and the value and potential impairment of our properties;  general economic, financial and political conditions, including credit market conditions, changes in interest rates or unemployment; changes in the retail industry, including consolidation and store closings, particularly among anchor tenants; the effects of online shopping and other uses of technology on our retail tenants;  our ability to sell properties that we seek to dispose of or our ability to obtain estimated sale prices; our ability to maintain and increase property occupancy, sales and rental rates, in light of the relatively high number of leases that have expired or are expiring in the next two years; acts of violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales;  increases in operating costs that cannot be passed on to tenants; risks relating to development and redevelopment activities which could be subject to delays or other risks and might not yield the returns we anticipate; concentration of our properties in the Mid-Atlantic region; changes in local market conditions, such as the supply of or demand for retail space, or other competitive factors; and potential dilution from any capital raising transactions.  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 in our most recent Annual Report on Form 10-K and in any subsequent Quarterly Report on Form 10-Q 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.

CONTACT: AT THE COMPANY
Heather Crowell
SVP, Corporate Communications and Investor Relations
(215) 454-1241
crowellh@preit.com

SOURCE PREIT

PREIT announces new lease with Whole Foods Market to open at Exton Square Mall in Exton, PA

Addition will provide an extraordinary shopping experience

PHILADELPHIA, PA, 2015-8-6— /EPR Retail News/ — PREIT (NYSE: PEI) announced a new lease with Whole Foods Market to open at Exton Square Mall in Exton, PA.

The 55,000-square foot store will complement the plans to redevelop the property, bringing a unique and engaging shopping experience this part of Chester County. Located on a site consisting of approximately 10 acres along Route 100, customers will gain improved access to the new addition as the existing mall, which will be remerchandised.

“The redevelopment of Exton Square Mall, with Whole Foods Market as a catalyst, will draw other distinctive and high quality retailers, restaurants and entertainment venues,” said Joseph Coradino, CEO of PREIT. “This project will better serve the region’s customers by offering a new experience and differentiated environment.”

Whole Foods Market currently has 424 stores worldwide, with 46 in the Mid-Atlantic region. As a leading natural and organic foods grocer, the company is committed to transparency and maintaining the industry’s highest quality standards, which don’t allow artificial flavors, colors, sweeteners, preservatives or hydrogenated fats in any of the food it sells.

“Satisfying, delighting and nourishing customers is a core value of Whole Foods Market, and this Exton location will provide us with yet another opportunity to do just that in the greater Philadelphia area,” said Whole Foods Market Regional President Scott Allshouse. “We strive to provide the highest quality products and handcrafted food and drink, including locally-grown and made items, as we live up to the name ‘America’s Healthiest Grocery Store.'”

About PREIT
PREIT is a real estate investment trust specializing in the ownership and management of differentiated retail shopping malls designed to fit the dynamic communities they serve. Founded in 1960 as Pennsylvania Real Estate Investment Trust, the Company owns and operates approximately 28 million square feet of space in properties in 12 states in the eastern half of the United States with concentration in the Mid-Atlantic region and Greater Philadelphia. PREIT is headquartered in Philadelphia, Pennsylvania, and is publicly traded on the NYSE under the symbol PEI. Information about the Company can be found at preit.com or on Twitter or LinkedIn.

About Whole Foods Market®
Founded in 1980 in Austin, Texas, Whole Foods Market (wholefoodsmarket.com), is the leading natural and organic food retailer. As America’s first national certified organic grocer, Whole Foods Market was named “America’s Healthiest Grocery Store” by Health magazine. The company’s motto, “Whole Foods, Whole People, Whole Planet”™ captures its mission to ensure customer satisfaction and health, Team Member excellence and happiness, enhanced shareholder value, community support and environmental improvement. Thanks to the company’s more than 88,000 team members, Whole Foods Market has been ranked as one of the “100 Best Companies to Work For” in America by FORTUNE magazine for 17 consecutive years. In fiscal year 2014, the company had sales of more than $14 billion and currently has more than 405 stores in the United States, Canadaand the United Kingdom.

CONTACT:
Heather Crowell
VP, Corporate Communications and Investor Relations
(215) 454-1241
crowellh@preit.com