PREIT Executes on Remerchandising Initiatives

600,000 square feet of new tenants in pipeline validates caliber of PREIT portfolio

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Sep 05, 2014, 08:00 ET

PHILADELPHIA, Sept. 5, 2014 /PRNewswire/ -- Pennsylvania Real Estate Investment Trust (PREIT/NYSE: PEI) is selectively upgrading its properties through the introduction of new anchors and other sought after tenants. Through intensive remerchandising efforts, the Company has executed leases with retailers that will enhance the quality of its assets while driving sales and valuation.

PREIT CEO Joseph Coradino said, "We have made tremendous progress in our efforts to improve portfolio quality. In addition to disposing of certain non-core malls, we are improving the mix of tenants at our properties. Evidencing this momentum, as of the end of August, PREIT had executed new leases with tenants for approximately 600,000 square feet of space."

A number of new anchor leases have been executed to open stores within the PREIT portfolio, including:

Century 21 at The Gallery
Dick's Sporting Goods at Valley View and Francis Scott Key Malls
Burlington Coat Factory at North Hanover Mall

Property-wide remerchandising efforts are transforming three key properties – Viewmont Mall in Scranton, PA; Washington Crown Center in Washington, PA; and Moorestown Mall in Moorestown, NJ:

Viewmont Mall –
Viewmont Mall is a market-dominant center that has historically been more than 95% occupied. A proactive remerchandising effort designed to introduce sought-after brands and experiences has resulted in relocations and the introduction of current prototype stores for The Limited, Victoria's Secret, Bath & Body Works and Express as well as adding the region's only Forever 21, a new ULTA Cosmetics and Buffalo Wild Wings.

Washington Crown Center –
Located in the Marcellus Shale region of Pennsylvania, Washington Crown Center is an example of one of PREIT's opportunistic malls that has benefitted from economic development in the area. PREIT has introduced category-dominant merchants including Marshalls, Ross Dress for Less, Jo-Ann Fabric and Crafts, Shoe Department's Encore and has also executed leases with ULTA Cosmetics and Kay Jewelers. The addition of these tenants offers the area more fashion while driving NOI and occupancy and improving the credit profile of the asset.

Moorestown Mall -
Located in the suburbs of Philadelphia, PREIT is in the process of redeveloping Moorestown Mall to differentiate it from the Company's nearby trophy asset, Cherry Hill Mall. After successfully garnering enough votes for a referendum to overturn an alcohol ban that had been in place for over 100 years, PREIT successfully added fine dining to the mall. Within the last year, two James Beard Award-winning chefs have opened locations at the property – Osteria by Marc Vetri and Distrito by Jose Garces – along with Firebirds Wood Fired Grill and a coming soon Harvest Seasonal Grill and Wine Bar. These wonderful dining establishments accompany a Regal Premium Experience Theater that opened in December 2013. The area's most critically acclaimed salon, Rizzieri Salon & Spa, will open this fall and be the catalyst for the next phase of this project, Boutique Row, a segment of high-end, luxury retailers geared toward the fashion-forward, affluent shopper.  Three tenants are currently signed for this collection – Erdon, Zeyzani and Orangetheory Fitness.

Significant leasing is also occurring at PREIT's other core growth properties
Concentrated efforts to improve overall retailer quality in the core growth properties, which offer significant organic growth potential, has resulted in executed leases or new store openings with the following tenants in addition to those noted above at Moorestown and Viewmont Malls:

The Buckle at Capital City and Crossroads Malls,
Retail Group of America's emerging international concepts: F&F, Monsoon and Flormar at Exton Square Mall and Suite Blanco, F&F and Flormar at Patrick Henry Mall,
Pandora at Patrick Henry Mall
Ulta Cosmetics at Valley View Mall

PREIT continues to introduce productive retail concepts at its other premier properties including:

UNIQLO at Cherry Hill and Willow Grove Park Malls
Vera Bradley at Cherry Hill and Woodland Malls
Michael Kors at Willow Grove Park

About Pennsylvania Real Estate Investment Trust

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 over 30 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 www.preit.com or on Twitter or LinkedIn.

CONTACT AT THE COMPANY:
Heather Crowell
VP, Corporate Communications and Investor Relations
(215) 454-1241
[email protected]

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SOURCE PREIT