PHILADELPHIA, June 23, 2021 /PRNewswire/ -- PREIT (NYSE:
PEI), a leading real estate owner and developer, redefining the
future of the mall with mixed-use districts, highlighted several
factors contributing to its optimism about the recovery of its
communities:
Traffic - During the month of May, traffic on
average throughout PREIT's portfolio exceeded 90% of May 2019 levels. Five standout properties
generated traffic of 105% of 2019 levels and continue to outperform
2019 today.
In particular, Patrick Henry Mall continues to attract a broader
consumer base than pre-pandemic, registering 104% of 2019 traffic
on a year-to-date basis. The dominant enclosed shopping
center on the Hampton Roads
peninsula, Patrick Henry Mall is the only enclosed mall between
Norfolk and Richmond. Since
it's reopening, comparable tenants have registered double-digit
sales growth, on average.
Sales – Over 50% of PREIT's managed properties
generated sales growth over the comparable period prior to the mall
closures. Capital City Mall and Magnolia Mall, both dominant
in their markets, have generated particularly impressive sales
growth, reflecting their winner-take-all status.
Occupancy – Over 700,000 square feet of new space
has been signed for occupancy, representing over 150% of 2019
volumes. This includes a healthy mix of traditional mall
retailers, emerging retailers, new-to-portfolio, clicks-to-bricks
brands and non-traditional uses. Importantly, PREIT's growing
pipeline of executed transactions represented over $8.3 million in annualized future revenue as of
March 31, 2021.
Collections- continuing a trend of tenant business
improvement and repayment of deferred rents, PREITs cash
collections have continued to be strong, recovering amounts agreed
to be paid later. In April and May, cash collected
represented 149% and 119% of billed rents, respectively.
"We're excited to welcome customers back to tactile, in-person
experiences that have been largely unavailable to them over the
last year and a half. Seeing statistics outpacing 2019
numbers paints a telling picture for the future of this business,"
said Joseph F Coradino, CEO of PREIT. "Our transformative
vision for properties previously conceived as
traditional malls, strategically reimagining them
as lifestyle destinations for consumers seeking one-stop
for their daily needs should result in continuing to strengthen our
community hubs, generating strong results for all
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 consumer experiences through the built environment.
PREIT's robust portfolio of carefully curated retail and lifestyle
offerings mixed with destination dining and entertainment
experiences are located primarily in densely-populated, high
barrier-to-entry markets 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 and in our Quarterly Report on
Form 10-Q for the quarterly period ended March 31, 2021. We do not intend to update or
revise any forward-looking statements to reflect new information,
future events or otherwise.
PREIT Contact:
Heather
Crowell
EVP, Strategy and Communications
(215) 316-6271
heather.crowell@preit.com
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