PHILADELPHIA, Oct. 31, 2018 /PRNewswire/ -- PREIT (NYSE: PEI) today announced two newly executed leases with Michaels and Miller's Ale House at Plymouth Meeting Mall, completing its anchor replacement initiative for the former Macy's space. Plymouth Meeting is one of PREIT's many anchor replacement projects that span an array of uses and expeditious re-tenanting. In a year where Bon Ton closed 212 stores and Sears announced an initial closing list of 142 additional stores, PREIT has completed its planned department store repositioning effort. In the past 13 months, PREIT has opened or executed leases with nearly 30 tenants in 10 former department store spaces. The replacements span an array of uses including dining, entertainment, off-price, fitness, sports & leisure, arts & crafts, grocery and even traditional department stores. As part of its proactive replacement strategy, PREIT replaced 5 Sears stores and 1 Bon-Ton store.
"With the majority of our anchor replacement work behind us, PREIT is once again ahead of the curve, as we were in our low-productivity mall disposition effort," said Joseph F. Coradino, PREIT CEO. "Our constituents are welcoming the new mall model we are delivering as evidenced by our record sales levels and sharp improvement in leasing spreads and new leasing activity."
The new tenants at Plymouth Meeting underscore PREIT's continued foresight into evolving consumer preferences and the need for diverse retail and dining offerings, as it even further differentiates the tenancy model at the property. Since its addition of Dave & Busters in 2009, nearly a decade prior to the "retailtainment" boom sweeping shopping centers nationwide, PREIT has continued to differentiate the property in today's competitive retail environment and has set the stage for densification of the property with the addition of multifamily in the coming years.
Michaels will occupy 26,000 square feet of space, offering arts, crafts, framing, floral, wall décor and seasonal merchandise for do-it-yourselfers of all ages. Miller's Ale House, a casual sports bar and restaurant offering freshly-made food at an incredible value, will occupy 7,300 square feet of space. The two new tenants will join retailers Burlington, DICK's Sporting Goods and Edge Fitness in filling the anchor box – all of which will open in Fall 2019. These new additions will not only further attract shoppers to the mall, but also drive revenue at the property, with sales from the anchor box projected to produce at least three times what was previously generated.
"As the definition of a 'mall' evolves and expands, the Plymouth Meeting Mall is unequivocally the prime example of what retail experiences of the future will look and feel like," said Joseph Coradino, CEO of PREIT. "Through smart integration of entertainment, dining, grocery, fitness and an array of retail segments, we continue to drive traffic to the mall, creating an experience that keeps visitors coming again and again."
PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely-populated eastern U.S. with concentrations in the mid-Atlantic's top MSAs. Since 2012, the company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by 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 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, 2017 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.
SVP, Strategy and Communications