In November 2012, PREIT said it would reshape its portfolio by disposing of non-core properties, including its lower-productivity malls, to reduce debt, improve portfolio quality and drive operating results.

Since that time, PREIT has sold 13 lower-productivity malls and several power centers and land parcels, generating about $600 million in gross proceeds. The malls sold had substantially lower sales per square foot, gross rents, non-anchor occupancy, and were broadly responsible for decreasing PREIT's net operating income an average of 10 percent in the year before their sales, the firm says.

PHILADELPHIA—PREIT sold four more underperforming malls in Pennsylvania, Virginia and Alabama, continuing its strategic exit from properties it regards as “non-core,” which had below-average sales, gross rents, and occupancy.

“PREIT has remained steadfastly committed to creating a high-quality portfolio that delivers outstanding results for our shareholders,” says Joseph Coradino, CEO of PREIT. “The disposition of these 13 malls redefines PREIT. With sales of $458 per square foot and remerchandising and redevelopment initiatives under way that provide a clear and realizable path to $500 per square foot, we are now a more compelling platform for retailers and investors, allowing us to continue to drive same-store NOI growth and strong shareholder returns.”

PREIT sold Lycoming Mall in Pennsdale, PA, which is anchored by JC Penney, Sears, Bon-Ton and Macy's, to Kohan Retail Investment Group for $26.35 million, and sold a portfolio of three malls— Gadsden Mall in Gadsden, AL, anchored by Belk, JC Penney and Sears; New River Valley Mall in Christiansburg, VA, anchored by Belk, Dick's Sporting Goods, JC Penney and Kohl's, and Wiregrass Commons Mall in Dothan, AL, anchored by Belk, Burlington Coat Factory, Dillard's and JC Penney—to Farallon Capital Management for $66 million, including $17 million in seller financing. PREIT senior vice president of corporate communications and investor relations Heather Crowell confirmed the buyers to GlobeSt.com.

PREIT says the transactions indicate that its non-core mall disposition program is almost complete, and that only one remaining mall is being marketed for sale.

In November 2012, PREIT said it would reshape its portfolio by disposing of non-core properties, including its lower-productivity malls, to reduce debt, improve portfolio quality and drive operating results.

Since that time, PREIT has sold 13 lower-productivity malls and several power centers and land parcels, generating about $600 million in gross proceeds. The malls sold had substantially lower sales per square foot, gross rents, non-anchor occupancy, and were broadly responsible for decreasing PREIT's net operating income an average of 10 percent in the year before their sales, the firm says.