Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHILADELPHIA-Pennsylvania Real Estate Investment Trust’s occupancy rates and sales per square foot took a hit in the first quarter, largely because of tenants going bankrupt. But the mall owner is fighting back with an aggressive redevelopment scheme and the leasing of alternate tenants.

PREIT’s occupancy dropped to 84.5% during its first quarter, down from 88.3% in the same period in 2008. Meanwhile, sales per square foot fell to $340 from $356.

“Many of the retailers in our portfolio are facing challenging times, and this is effecting our results,” said Ronald Rubin, the company’s chairman and chief executive officer. The company has given rent abatements on a “case-by-case basis” to struggling retailers, added Edward Glickman, PREIT’s president and chief operating officer.

To more consumers from a regional area, PREIT is renovating some of its key malls. Today it is opening a lifestyle wing at Plymouth Meeting [PA] Mall, with Ann Taylor Loft, Chico’s, Coldwater Creek and other tenants. In March it completed a redesign of Cherry Hill [NJ] Mall, adding a Nordstrom and other tenants.

PREIT, which owns 56 shopping centers mostly on the East Coast, saw its net operating income drop to $71.9 million during the quarter, from $75.8 million during the same year-ago period. FFO fell from $34.1 million to $29.3 million.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.