Thu, Jul. 21, 4:41 PM
Mon, Jul. 18, 8:16 AM
- The company has agreement of sales in hand for Washington Crown Center in Washington, PA, along with an office building at Voorhees Town Center in South Jersey.
- Washington Crown Center - anchored by Bon-Ton, Macy's, Gander Mountain, and Sears - generated sales per square foot of $318 and non-anchor occupancy of 87.9%.
- PREIT (NYSE:PEI) has also decided to put Beaver Valley Mall on the block after Shell's decision to move forward with development of a multi-billion dollar petrochemcial complex right down the road. This move will bring thousands of jobs to the region, making it an ideal time to unload the property, according to PREIT management.
Wed, Jul. 13, 7:29 AM
- The modification of PEI's seven-year term loan increased potential borrowing to $250M from $100M, and expanded the accordion feature to up to $400M.
- Interest rates were lowered at all leverage levels in the pricing grid, with the current rate at closing Libor plus 160 basis points - down 55 bps from the previous deal.
Fri, Jun. 17, 12:16 AM
- PREIT PEI launches PREIT Perks, a shopper digital rewards program enabling shoppers to earn credit on purchases and provide retailers enhanced visibility into shopper behavior at PREIT malls.
- This program is debuting at the Cherry Hill Mall in Cherry Hill, NJ, and will be rolled out across PREIT's portfolio over the next several months.
Tue, Jun. 7, 7:39 AM
Wed, May 18, 10:42 AM
- Target is the latest major retailer to report a disappointing Q1 and issue weak forward guidance. It's lower by 9% today.
- Those REITs which may rent to the likes of Target or Wal-Mart or Macy's or Nordstrom ... may be starting to sense a trend.
- Simon Property (SPG -1.1%), General Growth (GGP -1.5%), Kimco (KIM -1.6%), PREIT (PEI -1.8%), DDR (DDR -1.7%), CBL (CBL -3.1%), Federal Realty (FRT -1.2%).
- IYR -0.95%
Tue, May 17, 11:02 AM
- Following up on yesterday's story about the divergence between the stock prices of major retailers (down) and those of their landlords (up), Bloomberg's Rani Molla and Shelly Banjo break down the numbers further.
- They find those REITs with a large portion of portfolios concentrated in malls are down 10% Y/Y vs. all REITs, which are higher by 6%. Going further, they find those REITs with exposure to higher-end malls and outlet centers - Simon Property Group (NYSE:SPG) and Tanger Factory (NYSEMKT:SKY) come to mind – have been spared, while those owning older malls have taken the hit. CBL & Associates (NYSE:CBL) and WP Glimcher (NYSE:WPG) are down 40% and 30% this year, respectively.
- It's easy to pick on mall owners, but a broad slowdown at brick-and-mortar stores is ultimately a threat to all retail landlords, as traffic across all types of retail real estate in the U.S. and Canada has fallen as much as 18% Y/Y.
- On the good side is low supply as developers have stopped building, but even that's begun to run its course, they write.
- REITs of interest: O, NNN, GGP, KIM, WRI, MAC, TCO, PEI, SKT, TCO, ROIC, RPAI, IRC, FRT, DDR, WHLR, EQY, KRG, REG
Mon, May 16, 9:39 AM
- The retail sector has made a lot of headlines of late with a series of poor earnings and forward guidance reports ... and the stock prices of retailers have subsequently been marked down.
- It's created a sizable divergence with the stock prices of the landlords who depend on a steady stream of rising rents from those retailers, notes Marketfield Asset Management's Michael Shaoul.
- via Bloomberg
- REITs of interest: O, NNN, SPG, GGP, KIM, WRI, MAC, TCO, PEI, SKT, TCO
Mon, May 9, 4:47 PM
Tue, Apr. 26, 4:43 PM
Mon, Apr. 25, 5:35 PM
- AAPL, AFL, AIZ, AKAM, ARAY, ARI, ASH, AXS, BEAT, BLDP, BRX, BWLD, BXMT, BXP, BYD, CHRW, CINF, CLMS, CMG, COF, CREE, CRUS, CUDA, CVA, EBAY, EEFT, EQR, EW, EXAC, FE, FOE, FSP, FTI, FTNT, HAWK, HIW, HLS, HUBG, IRBT, ISIL, JBSS, JBT, KLAC, MKTO, MRCY, MTSI, MWA, NANO, NCR, NUVA, O, PEI, PNRA, PSA, PSB, RHI, RMD, RNR, SKT, SLCA, T, TEX, TMK, TSS, TWTR, TX, ULTI, VNTV, WNC, WRB, X, ZIXI
Mon, Apr. 25, 9:44 AM
- Being mulled by owners of shopping centers/malls this morning is new research from Green Street Advisors suggesting department stores need to close about 800 locations, or 20% of all anchor space in U.S. malls.
- Sears alone would need to close 43% of its stores to get inflation adjusted sales per square foot back to 2006 levels. Of course, retailers like Sears, Macy's, and J.C. Penney have already closed hundreds of spots over the past few years.
- The Green Street study says sales per square foot of $165 last year were down 24% from 2006, while physical footprints are off just 7%.
- Department stores may not agree. J.C. Penney CFO has said that when the company closes a store - particularly in a small market - dot.com business also goes down.
- Watching with interest: RPAI, IRC, KIM, FRT, DDR, EQY, CBL, SPG, GGP, BRX, WRI, PEI
Wed, Apr. 20, 9:38 AM
- Leading the mall REITs to the upside today is PREIT (PEI +1.5%) after Stifel upgrades to Buy from Hold. The $27 price target represents 19% upside from yesterday's close.
- The company yesterday announced the refinancing of the mortgage on its Viewmont Mall, thus satisfying all debt maturities until June 2017.
- Now read: A Few Thoughts Inspired By Saturday Shopping (April 4)
Thu, Mar. 31, 11:49 AM
- PREIT (NYSE:PEI) this week announced four more mall sales, with three - two in Alabama and one in Virginia - sold to Farallon Capital at a blended cap rate of 17%. The other mall in Pennsdale, PA was sold to Kohan Retail Investment Group at an 18% cap rate.
- Source: WSJ
- The crazy-low prices point to the disparity in mall economics in these days of online competition in which prime properties continue to reel in high rents, but everything else has a very hazy future. Green Street Advisors says about 15% of the country's 1K malls need to go away or be repurposed into something other than retail in the next ten years.
- Other uses range from call centers, to community colleges, to government offices.
- As for PREIT, it deserves a thumbs-up, says Green Street. "Selling [a] C-quality mall is a very arduous process."
- Now read: Activism In Mall REITs Is Alive And Well
Wed, Mar. 30, 7:27 AM
- With the sales of four malls, PREIT (NYSE:PEI) has neared the completion of its non-core mall disposition plan, with one remaining mall still being marketed for sale.
- The four announced today are being sold for $66M (and includes $17M of seller financing).
- Overall, the malls sold in this dispostion plan had average sales per square foot of $267 vs. $458 for what the company has left; average rents of $28.82 vs. $54.56.
- The company goal is to get to $500 in sales per square foot.
- Source: Press Release
Tue, Mar. 15, 3:19 PM
- "Malls are like the fashion business," says Sandler O'Neill's Alexander Goldfarb. "It's very expensive to look good."
- While many malls countrywide are struggling - Green Street Advisors figures about 15% of the nation's 1K-1.5K malls will close or be converted to other uses over the next ten years - owning so-called A malls is typically seen as a buffer against such a shakeout.
- It's not easy to keep up with the A-listers though, and Taubman Centers (NYSE:TCO) - for one - is spending $500M to renovate tony Beverly Center, while Westfield Corp. is putting $800M into Century City just three miles away. Simon Property Group (NYSE:SPG) is spending about $1.5B on various projects.
- A++ malls like the two mentioned above - Green Street figures there are only 37 in the U.S. - generate $965 per square foot in sales vs. B+ malls at $415 and C+ malls $305.
- The payoff can be big, says Goldfarb.
- Others of interest: GGP, MAC, PEI
Pennsylvania Real Estate Investment Trust is an equity real estate investment trust. The company engages in the ownership, management, leasing, acquisition, redevelopment and development of enclosed malls. Its properties and malls include national or regional department stores, large format... More
Industry: REIT - Retail
Country: United States
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