South Jersey Mall Owner Lost $38.2M In 2019: Report

PREIT, which owns malls in Cherry Hill and Moorestown, reported a net loss of nearly $40 million last year, and is reportedly planning to sell about $313 million worth of assets.

PREIT said it lost $38.2 million in 2019, the Courier Post reports. It plans to raise revenue by the planned sale and leaseback of the Moorestown Mall.

"As we look into 2020, we are beginning to believe that industry headwinds are moderating and the strategic initiatives underway at PREIT will drive growth and value creation,” PREIT Chairman and Chief Executive Officer Joseph Coradino said in a statement. “We have taken proactive steps to manage industry-wide disruption, such that today 47% of our non-anchor space is leased to non-mall retail tenants. We have achieved strong momentum in the first five months of operation at Fashion District Philadelphia, and look forward to the continued success of that project.”

Fashion District and the Moorestown Mall are both home to Anchor Shops, a fulfillment center that houses more than 40 online retailers.

The Moorestown Mall recently lost Macy's, Sears and Lord & Taylor, but is bringing in restaurants such as Joe Italiano's Maplewood, Hash House A Go Go and The Yard House. There has been discussion of designating the mall as an “area in need of rehabilitation.”

“Our growing sales and traffic, along with modest same store NOI growth projected amid continues retail market uncertainty, demonstrate that our strategy is working," Coradino said. "Further, we believe the capital transactions we are embarking upon demonstrate that the quality of our portfolio provides us with opportunities to efficiently access the capital markets.”

Last summer, California Pizza Kitchen closed at the Cherry Hill Mall, but PREIT announced it was adding Medici and cosmetics giant Morphe.

PREIT also owns the Cumberland Mall in Vineland, and has an interest in the Gloucester Premium Outlets in Gloucester Township. It sold a parcel of land at the outlets for $937,000 last year, according to the company’s financial statement.