Cherry Hill Mall Owner Reports $49.6M In Losses To Start 2021

CHERRY HILL, NJ — The owners of the Cherry Hill Mall reported a loss of $49.6 million for the first three months of the year.

The Pennsylvania Real Estate Investment Trust (PREIT) on Thursday posted its quarterly report for the first three months of 2021. The $49.6 million loss for the period ending March 31 comes out to a loss of about 64 cents per share. Over the same period last year, PREIT lost $19.9 million, or 26 cents per share.

That period included two and a half months in which the Cherry Hill Mall and malls across the country were fully operational before closing down for an extended period due to the coronavirus pandemic, the results of which are still being felt.

PREIT Chairman and CEO Joseph Coradino is optimistic about the future, though, as more begins to open in New Jersey, and more people get vaccinated against the virus.

“The brick and mortar recovery is gaining momentum, and we believe our portfolio is poised to capitalize on this momentum,” Coradino said. “Traffic is improving across the portfolio with retailers posting strong sales in March, which has led to improved collections, increased liquidity and vigorous tenant demand creating a robust pipeline of leasing activity.”

Earlier this week, governors in New Jersey, New York and Connecticut announced capacity limits at restaurants, stores, offices and other areas of life are set to be lifted by May 19. Read more here: 'Major' COVID Reopening In NJ: Here's What's Planned

Restaurants will be able to fill their establishments with everyone staying 6 feet apart rather than adhering to capacity limits based on percentage. The Cherry Hill Mall, and other malls in PREIT’s portfolio and across the country, have shifted a focus to dining in recent years.

The Moorestown and Vineland malls also have Regal Cinemas. PREIT has filed a lawsuit against Regal, which PREIT says has not paid more than $2 million in rent at those locations, the Courier Post reports.

PREIT said it has collected 81 percent of the rents overall at its properties for the first quarter of this year, up 73 percent from the fourth quarter of last year, and 61 percent from the third.

Core mall total occupancy stands at 89.2 percent, and non-anchor occupancy was 87 percent.
PREIT also pointed to its advancements in leasing and redevelopment, specifically pointing to a Cooper University Hospital Outpatient location that has opened at the Moorestown Mall.

PREIT hopes these efforts will help turn around their losses, which have been mounting for the last few years. The company didn’t post an outlook for the upcoming year on Thursday.