"We are beginning to see a stability return to the economy," said Ed Glickman, the REIT's president, who observed that the company is near an "inflection point" in its financial performance.
FFO was down, at $25.5 million, compared to $29.3 million during the same year-ago period, as was NOI, which slightly dipped to $71.6 million from $71.9 million.
But other numbers were more encouraging. Sales per square foot in its 54 assets, actually increased from $340 in last year's first quarter to $341. Two malls reached sales per square foot in excess of $500, Cherry Hill (NJ) Mall and Jacksonville (NC) Mall, Occupancy had a slight uptick, from 88.8% to 89.3%.
Management was encouraged by strong tenant same-store sales, which rose 5.7% during the quarter, and expanding tenants like electronics chain Hhgregg and Books-A-Million filling vacant spaces. Joe Coradino, president of PREIT's management company and head of retail operations, said next month's annual International Council of Shopping Centers meeting in Las Vegas will likely spur more lease signings.
However, PREIT isn't out of the woods yet. Management forecasts a loss per share for the year between $1.73 and $1.61. Additionally, Glickman observed that "we are experiencing maybe the eye of the storm rather than the end."
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