How PREIT Plans Forward Strategy to Generate Success, Yield Results
Pennsylvania Real Estate Investment Trust CEO Joe Coradino says on the firm’s Q3 2021 results that the REIT is focused on selling weak properties, taking back department stores that should have closed and bringing tenants in that people seek out.
PHILADELPHIA, PA—Pennsylvania Real Estate Investment Trust’s business is back and stronger than ever with fundamentals and outlook. “It is the brightest we’ve seen in years,” said CEO Joe Coradino on the firm’s Q3 earnings call. The momentum into the holidays, he said, is palpable across the portfolio.
“If they’re selling off our weak properties, taking back department stores that should have closed, and bringing in tenants people seek out, the success of this strategy is demonstrable,” he explained. “Our determined effort to curate a portfolio that generates success for our tenants and impact for our community is yielding tangible results and strong NOI growth, leasing activity, traffic and sales trajectories.”
Same-store NOI excluding lease terminations grew by 36% for the quarter, he said. Year-to-date, the REIT was up 17.2%, and are on target to exceed the REIT’s forecast to deliver mid to high teens same-store NOI growth this year.
On the transaction front, he said that new activity volume now exceeds that of any of the past five years, during many of which the REIT had a larger portfolio. On the sales side, he said that sales have grown beyond that of 2019, “which is arguably the best barometer of the health of our business. We’re seeing nothing short of an outstanding response to our offerings from customers, and we anticipate a highly productive holiday season.”
He added that “As we move toward our goal of $600 per square foot with record breaking leasing activity, it’s unquestionable that consumers are demonstrating a clear desire to return to in-person experiences, and our thoughtful and successful tenancy in core markets is on point.”
Looking forward, Coradino said, the company anticipates closing on a number of potential asset sales. “We expect to close on the sale of 12 parcels for over $120 million in proceeds by mid-’22. Our liquidity and collections continue on track ahead of plan, and we expect to end this year with over $100 million in liquidity.”