PEI - 1 Retail REIT Sees More Signs of Recovery
The COVID-19 pandemic crushed mall traffic last year, driving huge drops in occupancy rates, revenue, and cash rent collections for most mall owners. This tough economic backdrop -- combined with high debt levels -- has forced three U.S. mall REITs to file for bankruptcy since the pandemic began, including Pennsylvania Real Estate Investment Trust (NYSE: PEI) .
Unlike worse-off rivals CBL & Associates and Washington Prime , PREIT emerged from bankruptcy quickly. A recent update highlighted how consumers' growing comfort with in-store shopping is revitalizing traffic at its malls, boosting interest from prospective tenants, and potentially paving the way for a recovery.
The U.S. has averaged a little more than 11,000 new confirmed COVID-19 cases per day over the past week, down from a peak of nearly 260,000 per day in early January. The mid-Atlantic states where most of PREIT's properties are located have even lower case rates. These factors, along with the widespread availability of coronavirus vaccines, are making people more comfortable shopping in person at PREIT's malls.
For further details see:
1 Retail REIT Sees More Signs of Recovery