(Save the date: RealShare New Jersey comes to the Hyatt Regency, New Brunswick, NJ, September 19.)
PHILADELPHIA-Pennsylvania Real Estate Investment Trust reports that its mall and retail store properties had strong sales for the second quarter and the year through June 30. The REIT reported sales per square foot of $378 through June 30, compared to $359 per square foot last year.
“We are pleased to report solid results including reaching another new high for comp-store sales and a 2.1% increase in same-store net operating income for the quarter,” says Joseph F. Coradino, CEO. “As this positive momentum grows, we remain focused on executing our operating plan and improving our balance sheet.”
The REIT currently owns 49 retail properties, including 38 shopping malls. Overall revenues were up for both the quarter and the year-to-date. For the six months ended June 30, funds from operations adjusted for executive separation were $46.6 million, or $0.80 per diluted share. That compares to $40.5 million, or $0.70 per diluted share, for the same period last year.
Net Operating Income for the quarter ended June 30 was $67.6 million, compared to $66.3 million in the same quarter of 2011. NOI for the six months ended June 30 was $136.8 million, compared to $133.0 million for same period in 2011.
Net loss attributable to common shareholders was $13.7 million, or $0.25 per diluted share, for the quarter, compared to a net loss of $18.2 million, or $0.34 per diluted share, for the quarter in 2011. For the six-month period, net loss was $23.7 million, or $0.43 per diluted share, compared to $32.6 million, or $0.60 per diluted share last year.
The primary factors affecting financial results for the quarter were:
* Decreased interest costs due to lower rates and smaller debt
* Preferred share dividends related to an April 2012 offering of $4.6 million in preferred shares, with net proceeds of $110.7 million
* Decreased depreciation and amortization due to the write-off of tenant allowances related to vacated tenants
In June 2012, the Company repaid in full the $136.9 million of its Exchangeable Notes upon their maturity. In July, PREIT refinanced a $50 million mortgage loan on Christiana Center in Newark, Delaware, with a ten-year loan at a 4.64% fixed interest rate.
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