PREIT Strategy of Proactively Replacing Sears Stores Continuing

PHILADELPHIA, PA—PREIT is proactively replacing Sears stores and says the project has resulted in minimal exposure to the troubled department store, down from 27 stores in 2012 to just four active stores today, when factoring in locations at lease with replacement tenants, those with non-recourse mortgage loans and one location with a significant portion of the space sub-leased by Sears to others.

Since 2017, PREIT has proactively replaced five Sears locations and has reached agreement to recapture a sixth store.  As part of its overall anchor repositioning and remerchandising strategy, PREIT has diversified the tenant roster with unique and experiential concepts to reflect the new mall model and drive traffic and sales while improving the underlying tenant credit within the portfolio.

“Just as we were proactive in disposing of lower-productivity malls, we have positioned ourselves well with minimal exposure to Sears in the event of potential material store closing event.  As we look to redefine the mall experience, we are finding great success in replacing department stores with a variety of uses and experiences in line with the interests of today’s consumer,” says Joseph F. Coradino, CEO of PREIT. “Our tireless effort to improve our portfolio continues and has laid the foundation for continued growth in traffic, sales and value for our shareholders.”

PREIT provided a list of new anchor tenants throughout its portfolio, either signed or opened, across several in-demand retail segments: