PREIT reports 10% rise in sales per sq. ft. versus 2019

In its just-released third-quarter report, the Philadelphia-based mall owner reported that its comparable mall sales grew to $592 per sq. ft. in the rolling 12-month period ended Sept. 30, 2022—a more than 10% increase over the $535 per sq. ft. number it posted prior to the onset of the pandemic three years ago.

"The addition of new-to-portfolio tenants and experiences, significant occupancy gains driving revenue and NOI increases, and improving leasing spreads provide additional opportunities to raise capital,” said CEO Joseph Coradino.

Leasing activity rose 4.8% compared to last year’s third quarter, placing its portfolio total occupancy rate at 94.4%. The company’s non-anchor occupancy rate hit 91.4%, an increase of more than 3%.

PREIT reported that it has executed 300,000 sq. ft. of leases for future openings that it expects will add  $7 million dollars of rent per year to its balance sheet.  One of those leases was signed by Tilted 10 and Tilt Studio for a 104,000-sq.-ft. family entertainment center at Willow Grove Park in Willow Grove, Pa.

The company also expects a 32,000-sq.-ft. Lego Discovery Center to open next year at Springfield Town Center in Springfield, Va.

Funds from operations decreased during the quarter, said PREIT, partially due to lower net operating income as a result of its sale of Gloucester Premium Outlets.

Last month, PREIT sold Cumberland Mall in Vineland, N.J. for $45 million to an unnamed buyer to help pay down its debt by $148 million dollars in this year’s first three quarters.

The company currently has approximately $130 million in purchase and sales agreements executed or in final stages of negotiation and has several others in the pipeline for potential future sales.