Meanwhile, net operating income for PREIT's retail portfolio increased 10.8% in third-quarter 2004, primarily from improved operating results from the properties it acquired from Rouse Co. in 2003 and subsequently redeveloped. This third quarter also marked the one-year anniversary of PREIT's acquisition of Crown American Realty. Third-quarter occupancy in PREIT's same store portfolio was 89.1%, down from 89.6% in the same quarter a year ago. Sales per sf in the same store portfolio rose to $345 for the trailing 12 months ended Sept. 30 this year, up from $342 per sf for the previous comparable period.
Occupancy at enclosed malls was stable at 90.3% occupancy, and sales per sf in those centers rose $5 per sf to $323 per sf. Occupancy in the company's power centers dropped to 96.8% at the end of this September, compared with 98% for the quarter ended June 30 this year.
During third quarter, PREIT executed 160 leases at an average of $16.60 per sf. The average rental rate on new leases for previously leased space rose $3.48 per sf over the expiration rate to reach an average of $35.34. Renewed leases, which included an anchor lease for 91,164 sf at a base rent of $1.86 per sf, increased, on average, 48 cents per sf, to $15.71 per sf. Rates for 34 formerly vacant spaces averaged $20.97 per sf.
Two former Crown malls joined PREIT's redevelopment roster. Capital City Mall, a 609,000-sf center in Camp Hill, will undergo $11 million in improvements, and $8 million will be invested in the 428,000-sf New River Valley Mall in Christiansburg, VA. Capital City is 98.4% occupied and generates $345 in sales per sf. Occupancy at New River is 77.5%, and it generates sales of $256 per sf.
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