PREIT Looking to Sell Less Profitable Malls to Strengthen Portfolio Quality
Pennsylvania Real Estate Investment Trust, owner of Willow Grove and Plymouth Meeting malls, is looking to sell two of its less profitable locations to boost the quality of its portfolio and invest in its more promising assets, writes Jacob Adelman for Philly.com.
PREIT has put Logan Valley Mall in Altoona and Valley View Mall in LaCrosseon on the market. The sale is partly driven by faltering stock prices but also continues PREIT’s strategy of focusing on its core assets. This has resulted in the sale of 16 malls with lower earnings since the beginning of 2013.
PREIT earned around $730 million from those transactions. It also helped elevate the average sales per square foot of its remaining properties to $465 during first quarter of this year. This metric is important as it is monitored by Wall Street to measure a mall-portfolio’s performance.
“With these additional dispositions, we are taking further action to strengthen our portfolio amid a challenging retail climate,” said PREIT chief executive, Joseph Coradino.
PREIT currently owns 22 malls, with Logan Valley and Valley View both in the bottom half for performance. Once the sales are complete, it should boost PREIT’s portfolio average sales per square foot by $10.
Read more about PREIT’s plans at Philly.com by clicking here.
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