PEI - PREIT Q2 FFO improves along with leasing activity occupancy rates
Pennsylvania REIT ( NYSE: PEI ), also called PREIT, posted higher adjusted funds from operations in Q2 from both the prior and year-ago quarters as leasing increased and occupancy rates improved.
Q2 adjusted FFO per share of $1.71 swung from -$0.06 in Q1 and increased from $0.48 in the year-ago quarter.
Recall that PREIT filed for Chapter 11 bankruptcy in November 2020 to restructure its debt as COVID-19 forced malls to shut earlier in the year and forced some of its tenants into bankruptcy. The company emerged from bankruptcy proceedings in December of the same year. PREIT continues to strengthen its balance sheet.
"We continue to drive the quality of our properties, raise capital through asset sales and pay down debt, improving the balance sheet and setting the stage for the anticipated exercise of our credit facility extension," said Chairman and CEO Joseph F. Coradino.
Q2 revenue of $73.1M increased from $69.4M in Q1 and fell from $74.1M in the year-ago quarter. Expenses of $102.5M compared with $105.7M in the prior quarter and $102.3M in the year-ago quarter.
Same-store net operating income, excluding lease termination revenue, fell 5.7% from a year-ago due to the recognition of bad debt recoveries that positively affected the year-ago quarter.
Core mall total occupancy was 93.8% in Q2 2022 vs. 92.7% in Q1 2022. Total core mall leased space at 95.0% rose from 94.0% in the prior quarter.
Average renewal spreads for the six months ended June 30, 2022 were 2.3%; that's down from the 3.7% average renewal spreads for Q1 2022.
Conference call at 11:00 AM ET.
Earlier, PREIT GAAP EPS of -$3.32 , revenue of $73.13M
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PREIT Q2 FFO improves along with leasing activity, occupancy rates