PREIT Core Mall Sales Increase 17% in July to Kickoff Back-To-School Season

Rhea-AI Summary

PREIT has announced a successful start to the 2021 back-to-school season, with Core Mall July sales rising 17% compared to 2019. The company has launched a new reward program, Spend + Score, encouraging shoppers to spend $200 to earn a $25 gift card from over 30 participating tenants. Mall traffic saw a 9% week-over-week increase for the week ending August 15, 2021. Additionally, over 325,000 square feet of new retail space is set to open by October, and community support initiatives are in place to help students in need.

Positive

• Core Mall July sales increased by 17% compared to 2019.
• Mall traffic increased by 9% for the week ending August 15, 2021.
• Launch of the 'Spend + Score' customer reward program.
• Over 325,000 square feet of new tenants expected to open by October.

Negative

• None.

PHILADELPHIA, Aug. 23, 2021 /PRNewswire/ -- PREIT is celebrating its various constituencies with its 2021 back-to-school campaign.  With sales predicted to break records by the National Retail Federation, PREIT malls are ready to greet customers, while supporting their communities and driving business to their tenants. 

Driving Sales
Sales continue to be strong throughout the portfolio with Core Mall July sales increasing 17% over 2019. As part of its effort to drive business to its tenants and reward their loyal shoppers, PREIT has implemented a seasonal reward program, Spend + Score. From now through Sept. 6, for every $200 spent at PREIT malls, customers will receive a $25 gift card of their choice from a list of more than 30 merchants, all of which are PREIT tenants. To participate, customers must upload pictures of their receipts at spendandscore.com by September 30, 2021. 

Driving Traffic 
The season is starting off strong with core mall traffic for the week ended 8/15/21 up over 9% over the prior week. While shopping for school supplies, gear, clothing, shoes, make-up and plenty of hand sanitizer, back-to-school shoppers are encouraged to share their school pride during each mall's Spirit Day, for a chance to win gift cards or other prizes from favorite retailers. 

Fresh Offerings 
Timing is everything and PREIT properties are welcoming new tenants at a robust rate. Across PREIT's portfolio, over 325,000 square feet of new tenants are expected to open through October.

Supporting our communities.
Each PREIT Mall has partnered with a local non-profit throughout the month of August to collect and distribute backpacks and school supplies for students in need. 

Across its footprint, PREIT is collaborating with 10 non-profits to ensure students in its communities have the resources they need to kickstart a successful school year.

"We are proud to offer a comprehensive program to engage our communities for the back to school season.  As stewards of the best possible experience, we are pleased to continue welcoming back customers in an environment where they are rewarded, sales are being driven to our tenant partners and we are giving back as community centerpieces should," said Joseph F. Coradino, CEO of PREIT. "This is a unique back-to-school season and we are focused on curating fresh, evolving experiences and diverse tenant mixes that create value for all of our stakeholders." 

About PREIT

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages innovative properties at the forefront of shaping consumer experiences through the built environment. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in densely-populated, high barrier-to-entry markets with tremendous opportunity to create vibrant multi-use destinations. Additional information is available at www.preit.com or on Twitter 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, 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 consolidation and store closings, particularly among anchor tenants; current economic conditions, including the impact of the COVID-19 pandemic and the steps taken by governmental authorities and other third parties to reduce its spread, and 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; acts of violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales; 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.

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

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SOURCE PREIT

FAQ

What was the percentage increase in PREIT's Core Mall sales for July 2021?

Core Mall sales increased by 17% in July 2021 compared to 2019.

How is PREIT supporting the community during the back-to-school season?

PREIT has partnered with local non-profits to collect and distribute backpacks and school supplies for students in need.

What reward program has PREIT launched for back-to-school shoppers?

PREIT launched the 'Spend + Score' program, offering a $25 gift card for every $200 spent at its malls.

When will the new tenants at PREIT properties open?

Over 325,000 square feet of new tenants are expected to open through October 2021.