Pennsylvania Real Estate Investment Trust (

PEI

)

Q3 2011 Earnings Call

October 27, 2011 11:00 am ET

Executives

Shawn Southard – Director, Corporate Communications

Ronald Rubin – Chairman and Chief Executive Officer

Edward A. Glickman – President and Chief Operating Officer

Robert F. McCadden – Executive Vice President and Chief Financial Officer

Joseph F. Coradino – President, PREIT Services, LLC and PREIT-RUBIN, Inc.

Analysts

Quentin Velleley – Citigroup Inc.

Craig Schmidt – Bank of America/Merrill Lynch

Michael Mueller – JPMorgan

Nathan Isbee – Stifel Nicolaus & Company, Inc.

Benjamin Yang – Keefe, Bruyette & Woods

Cedrik Lachance – Green Street Advisors

Jeff Lau – Sidoti & Company

Presentation

Operator

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Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Pennsylvania Real Estate Investment Trust Third Quarter 2011 Earnings Conference Call. During today’s presentation, all participants will be in a listen-only mode. Following the presentation, the conference will be opened for questions. (Operator Instructions) This conference is being recorded today, Thursday, October 27, 2011.

At this time, I would like to turn the conference over to Shawn Southard. Please go ahead, sir.

Shawn Southard

Thank you (inaudible). Before management begins their prepared remarks, I would like remind our listeners for this conference call will contain certain forward-looking statements within the meaning of the Federal Securities Laws. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical fact.

These forward-looking statements reflect PREIT’s current views about future events and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statement.

PREIT’s business might be affected by uncertainties affecting real estate businesses generally, as well as specific factors discussed in PREIT’s press releases, documents previously filed with the Securities and Exchange Commission, and in particular PREIT’s Annual Report on Form 10-K. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

It is now my pleasure to turn the call over to Ron Rubin, Chairman and CEO of PREIT. Ron, the floor is yours.

Ronald Rubin

Thank you very much. Welcome to the Pennsylvania Real Estate Investment Trust third quarter 2011 conference call. Joining me on the call today are Ed Glickman, President; Bob McCadden, our CFO; and Joe Coradino, President of our Management Company and Head of our Retail Operations. Also in the room today are Vice Chairman, George Rubin; and General Counsel, Bruce Goldman.

Today we will discuss our third quarter results, the status and some of our projects and our expectations for the balance of 2011. After we conclude our remarks, the call will be open for your question.

As noted in our press release, the company has experienced the seven consecutive quarter of same-store sales growth, with improvement at 33 of our 38 malls. This growth during a period of economic in stability this reflects of our demographics an improvements in the quality of our assets and their management. As you will here during this call, the company’s efforts are being recognized by our shoppers, our tenants, and by our vendors.

[Before] have been shopping and new an exciting tenants are leasing space in our properties. These efforts have been recognized by our vendors who have participated in a number of property financing during the quarter what we believe our favorable current. Notwithstanding stability in our sales and then occupancy we understand that recovery remains gradual and have no work must be done.

With stable performance consistent with our guidance, we are making slow steady progress in our efforts to strengthen our financial position. Hostel to improved our operational performance and maximize the value of our properties. To accomplish this we are working to improve our balance sheet complete tenant to service to increase NOI to improved occupancy and to generate positively since spreads for all its part of our strategies to create long-term value for our shareholders.

With that, I’ll turn the call over to Ed Glick.

Edward A. Glickman

Thanks Ron. And thanks to all of you for joining us on this call. The company had a solid third quarter with FFO as adjusted up 24%, below we go to market which is the five prediction our portfolio showed improved comp sales performance occupancy under renewals funds that a level of stability and same-store NOI improved.

Sales per square foot increased 4% over year ago to $362 only $2 of our peak level reported in the second quarter of 2007. With occupancy stable on our comp sales momentum rising we see PREIT’s portfolio becoming increasingly attractive to tenants in 2012. During the quarter, we adjust the last of our 2011 debt maturities we are now fully focused on 2012, when $462 million of our mortgage loan mature.

This includes $100 million of power center loan that can be expanded by their chart. Of the remaining 2012 maturities Cap City, Beaver Valley, Chambersburg and Cherry Hill Mall $230 million represents mortgage loans on Cherry Hill Mall. Based on the strong performance of this assets we expect our refinancing activity are generated excess proceed.

Between the excess proceeds from refinancing and expected of availability of our line of credit, we can more than cover the $137 million balance on the exchange of all those with comes during that.

At present, our operating cash flow covers our return on capital expenditures, our scheduled mortgage principal payment and our current dividend. We see availability of our line of credit and anticipated excess proceeds, we believe we have sufficient liquidity to funds our 2012 development and redevelopment activity.

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