PHILADELPHIA, Jan. 13, 2015 /PRNewswire/ -- PREIT (PREIT/NYSE: PEI) today commented on the announced closure of the 51,000-square-foot JCPenney store at Cumberland Mall in Vineland, NJ.
"We are pleased that only one of the malls in our portfolio will be impacted by JCPenney's recent store closing announcement and that repurposing this location represents a significant opportunity to add value, given its premier position at the center and the existing economics," said Joseph F. Coradino, CEO of PREIT. "It is also noteworthy that JCPenney did announce store closings at two of the malls we recently sold which demonstrates the improved portfolio quality we have achieved through our strategic disposition program."
PREIT has successfully replaced 10 department store tenants in the past 10 years and is currently negotiating a lease for the anchor vacancy at New River Valley Mall. In 2014, the Company executed 480,000 square feet of leases with anchors, big box and office tenants.
Cumberland Mall, one of the area's leading shopping destinations, is well-located with more than 18 million cars passing the property annually. The Cumberland Mall is at the intersection of Routes 55 and 47 in southern New Jersey, along one route to the Jersey Shore, a regional tourist and vacation home destination. The anchor box occupied by JCPenney is particularly well-located at the number one entrance for vehicular traffic with visibility from the major roadways. In addition, the hybrid nature of the center, which combines the convenience of a power center and an enclosed mall, lends itself to a multitude of options.
As of September 30, 2014, the Cumberland Mall was 94.3% occupied and generated comparable sales per square foot of $298.
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 29 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 befound at 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 Letter of Credit; 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; 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
VP, Corporate Communications and Investor Relations