PREIT shares past successes, future plans

Penn Real Estate Investment Trust (PREIT) recently revealed the main points of selling eight different properties in 2014 and plans for five future properties.

Philadelphia-based PREIT has properties in 12 states throughout the Eastern U.S. Most of the properties are in the Greater Philadelphia and Mid-Atlantic areas.

Since 2012, 16 PREIT properties sold for $424.1 million as part of the company's disposition program.  In 2014, PREIT sold eight different properties for a total of approximately $192 million.

Selling these properties were part of PREIT’s plan to enhance its portfolio. The company plans to refocus on assets with the best value creation opportunities. PREIT’s future plans include selling all of its non-core properties to fulfill its long-term goals.

Six of the properties sold so far included non-core enclosed malls; the shopping centers generated less than $250 of average sales per square foot. 

Sales in 2014 included the South Mall, which sold for $23.6 million. Whitehall Mall sold for $29.3 million. Nittany and North Hanover Malls sold for a total of $32.3 million. The Gallery sold for $106.5 million.

"PREIT has an outstanding portfolio of premier assets, supported by a healthy and flexible balance sheet, and we continue to unlock the value inherent in the company for the benefit of our investors," Joseph F. Coradino, CEO of PREIT, said. "We continue to be extremely effective in executing on our ongoing disposition program as demonstrated by the number of dispositions we completed in 2014. Through our disciplined and strategic disposition program, we are transforming our portfolio and enhancing value for shareholders as evidenced by the more than 28 percent return our investors enjoyed in 2014. By proactively marketing additional assets for sale in 2015, we are confident that we are taking the right steps to continue a portfolio transformation that will set us apart from our peers while generating significant proceeds to further upgrade our core, high-quality properties."

In 2015, PREIT plans to divest five additional properties: Palmer Park Mall, Lycoming Mall, Uniontown Mall, Springfield Park and Washington Crown Center.