Cherry Hill Mall Establishes New Level of Prestige with Forthcoming Retail and Dining Offerings

Rhea-AI Summary

PREIT (NYSE: PEI) announced significant new tenants at Cherry Hill Mall, enhancing its reputation as a premier shopping destination. Notable additions include Eddie V's, a seafood restaurant, and Marc Cain, a German women's fashion brand, both expected to attract more visitors. The mall reported an 18% sales increase in its dining establishments compared to 2019 and a record sales per square foot of $936. With a total of over 20 new tenants occupying 50,000 square feet, PREIT is positioned for growth amid ongoing retail changes.

Positive

• New leases signed with Eddie V's and Marc Cain enhance tenant diversity.
• Sales per square foot increased by 27% to a record $936.
• 18% sales growth in dining establishments compared to 2019.

Negative

• None.

PHILADELPHIA, Feb. 22, 2022 /PRNewswire/ -- PREIT (NYSE: PEI), a leading real estate investment trust focused on creating thoughtful, community-centric properties, today announced new and enticing additions to its flagship, Cherry Hill Mall. 

Eddie V's, a prime quality seafood restaurant, offering a fine dining experience, has executed a lease to open its first South Jersey location and second in the state at the property this fall.  This high-quality offering adds to an already dynamic full-service dining lineup comprised of The Capital Grille, Seasons 52, Maggiano's Little Italy and Bahama Breeze. Demonstrating the stalwart appeal of sit-down dining establishments at the center, 2021 sales increased 18% compared to 2019 at these establishments.

Marc Cain, an elite women's ready-to-wear brand hailing from Germany, is expected to open in  March.  Marc Cain combines a sense of aesthetics and art with casualness, innovative thinking and exclusivity. It will be one of few U.S. locations, as the brand is very selective with its partners.

These tenants join upcoming additions, Warby Parker and Amazon 4-Star, as more top retailers seek exclusive locations to bring the physical experience to their customers.

The caliber and diversity of this tenancy authenticates Cherry Hill Mall as the premier shopping and dining destination on the east side of Philadelphia.  PREIT's trophy asset, the property is experiencing robust leasing activity in the past year with more than 20 new tenants to occupy 50,000 square feet of space driven by powerful sales growth and a market-leading position. A key barometer of underlying value in brick and mortar retail, sales per square foot, was up 27% at the end of 2021 to a record $936.

"With the continued introduction of leading brands, Cherry Hill Mall continues to drive to the next level of super-regional, fashion destinations," said Joseph F. Coradino, CEO of PREIT. "Serving a densely-populated market, our premier tenant mix continues to attract and engage customers, driving success for our tenants to new heights. We are expanding the appeal of our portfolio through highly-coveted retail and dining establishments that serve as a catalyst for portfolio growth and value creation." 

About PREIT

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages innovative properties developed to be thoughtful, community-centric hubs. PREIT's robust portfolio of carefully curated, ever-evolving properties generates success for its tenants and meaningful impact for the communities it serves by keenly focusing on five core areas of established and emerging opportunity: multi-family & hotel, health & tech, retail, essentials & grocery and experiential. Located primarily in densely-populated regions, PREIT is a top operator of high quality, purposeful places that serve as one-stop destinations for customers to shop, dine, play and stay. Additional information is available at www.preit.com or on Twitter, Instagram or LinkedIn.

Forward Looking Statements

This press release contains certain forward-looking statements that can be identified by the use of words such as "anticipate," "believe," "estimate," "expect," "project," "intend," "may" or similar expressions. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect our current expectations and assumptions regarding our business, the economy and other future events and conditions and are based on currently available financial, economic and competitive data and our current business plans. Actual results could vary materially depending on risks, uncertainties and changes in circumstances that may affect our operations, markets, services, prices and other factors as discussed in the Risk Factors section of our other filings with the Securities and Exchange Commission. While we believe our assumptions are reasonable, we caution you against relying on any forward-looking statements as it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the effectiveness of strategies we may employ to address our liquidity and capital resources in the future, our ability to achieve our forecasted revenue and pro forma leverage ratio and generate free cash flow to further reduce our indebtedness; our ability to manage our business through the impacts of the COVID-19 pandemic, a weakening of global economic and financial conditions, changes in governmental regulations and related compliance and litigation costs and the other factors listed in our SEC filings. Additionally, our business might be materially and adversely affected by changes in the retail and real estate industries, including bankruptcies, consolidation and store closings, particularly among anchor tenants; current economic conditions, including consumer confidence and spending levels and supply chain challenges and the impact of the COVID-19 pandemic and the public health and governmental response as well as the corresponding effects on tenant business performance, prospects, solvency and leasing decisions; our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; our ability to maintain and increase property occupancy, sales and rental rates; increases in operating costs that cannot be passed on to tenants; the effects of online shopping and other uses of technology on our retail tenants; risks related to our development and redevelopment activities, including delays, cost overruns and our inability to reach projected occupancy or rental rates; social unrest and acts of vandalism and violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales; the frequency, severity and impact of extreme weather events at or near our properties; our ability to sell properties that we seek to dispose of or our ability to obtain prices we seek; our substantial debt and the liquidation preference of our preferred shares and our high leverage ratio and our ability to remain in compliance with our financial covenants under our debt facilities; our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; our ability to raise capital, including through sales of properties or interests in properties and through the issuance of equity or equity-related securities if market conditions are favorable; and potential dilution from any capital raising transactions or other equity issuances.

Additional factors that might cause future events, achievements or results to differ materially from those expressed or implied by our forward-looking statements include those discussed herein, and in the sections entitled "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2020. We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

Contacts:
For PREIT:           
Heather Crowell     
EVP, Strategy and Communications
(215) 454-1241
heather.crowell@preit.com

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SOURCE PREIT

FAQ

What new tenants are coming to Cherry Hill Mall in 2022?

Cherry Hill Mall is welcoming new tenants including Eddie V's and Marc Cain, enhancing its retail and dining offerings.

How much did sales increase for Cherry Hill Mall's dining establishments?

Sales for dining establishments at Cherry Hill Mall increased by 18% compared to 2019.

What is the sales per square foot at Cherry Hill Mall?

The sales per square foot at Cherry Hill Mall reached a record $936 at the end of 2021.

How many new tenants did PREIT add in the past year?

PREIT added over 20 new tenants occupying a total of 50,000 square feet at Cherry Hill Mall.

What is the significance of the new tenants at Cherry Hill Mall?

The addition of new tenants like Eddie V's and Marc Cain positions Cherry Hill Mall as a leading shopping destination and enhances its appeal.