Joe Coradino, chairman and CEO of PREIT (NYSE: PEI), participated in a video interview at Nareit’s REITweek: 2018 Investor Conference in New York.
Coradino said the company is beginning to see “positive results” as investors come to view PREIT as a high-quality mall owner. He highlighted that PREIT’s metrics, including sales per square foot, demographics, and occupancy levels, are all consistent with higher-quality mall companies.
As it fills in anchor spaces vacated by big box department stores, PREIT is trying to find “exciting, new credit-worthy tenants that meet the demands of the consumer,” Coradino said. He added that several retailers that have traditionally been open-air tenants have gravitated to high-quality, well-located malls of late, which has benefitted PREIT.
Meanwhile, given the discount at which retail real estate is trading, Coradino said it would be “hard to imagine” that mergers and acquisitions (M&A) activity won’t increase over time. He also added that sovereign wealth funds and institutional investors are likely to return to retail investment.