PREIT Portfolio Generates Strong Results During 2019 Holiday Season

Recently redeveloped assets report double-digit YoY traffic growth

Portfolio-wide holiday sales improved 4.2%

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Feb 04, 2020, 06:55 ET

PHILADELPHIA, Feb. 4, 2020 /PRNewswire/ -- PREIT (NYSE: PEI) today reports strong results from the 2019 holiday season, with key redevelopment projects demonstrating notable traffic growth year-over-year. Across its portfolio, holiday comparable stores sales increased 4.2 percent, driven by properties that recently opened new anchor stores and other remerchandised space. PREIT's transformational year culminated with sales for the portfolio reaching an all-time high of $539 as of December 31, 2019. During the holiday season, PREIT's properties hosted over 16 million shoppers, 60 community events and worked with approximately two dozen charitable organizations.

In Grand Rapids, MI, PREIT's Woodland Mall – which opened its highly anticipated expansion wing in October 2019 – has led strong double-digit growth over the holiday season. Overall holiday traffic grew 22 percent over last year, with Black Friday weekend traffic up 29 percent. Recent openings reflect a unique hybrid of national and local tenants, many of which are the brand's exclusive location in the market such as Von Maur, Urban Outfitters, The Cheesecake Factory, Tricho Salon, and Black Rock Bar & Grill.

Plymouth Meeting Mall, well-located in a highly trafficked intersection in the Philadelphia suburbs, saw traffic increase 22 percent this holiday season, kick-started by a 24 percent increase during Black Friday weekend year-over-year. The property benefitted as part of PREIT's anchor redevelopment initiative, welcoming sought-after destinations: DICK's Sporting Goods, Burlington, Miller's Ale House and Edge Fitness in the former Macy's location, with Michael's rounding out the anchor space when they grand open March 1, 2020. These new tenants highlight the new paradigm in retail in which tenants select the optimal location for their concept, irrespective of the format.

The multi-year remerchandising initiative at Mall at Prince George's paved the way for robust results, including a 10.2 percent year-over-year increase in traffic during the holidays, which comes on the heels of the over 5% growth recorded during Holiday 2018. Located in the densely populated Hyattsville, MD area, the property has welcomed more than a dozen new tenants such as H&M, Ulta, DSW, Five Below, Flight 23 and White Barn Candle. Several new dining options including Chipotle, Five Guys, Mezeh Mediterranean Grill and &Pizza have also joined the roster, with Hook & Reel and Miller's Ale House opening this year.

"Our forward-thinking strategy and execution of high-impact redevelopment projects across our portfolio continues to yield meaningful results and demonstrate our leading position in shaping customer experiences," said Joseph F. Coradino, CEO of PREIT. "The achievement of this exceptional double-digit traffic growth at key redeveloped assets underscores our ability to curate highly desirable tenant mixes that deliver a unique mix of differentiated uses designed for long-term success and value for shoppers, tenants and shareholders."

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 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, 2018 in the section entitled "Item 1A. Risk Factors." and our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 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:
Heather Crowell
EVP, Strategy and Communications
(215) 454-1241
[email protected]

SOURCE PREIT