Why Pennsylvania R.E.I.T. Jumped 16% Today



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What happened

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Shares of Pennsylvania real estate investment trust (NYSE: PEI) 16.3% rose on Friday, after the publication of the company's first quarter results. "data-reactid =" 12 "> Shares of Pennsylvania real estate investment trust (NYSE: PEI) It exploded 16.3% more on Friday, after the release of the results of the company's first quarter.

And that

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The owner of the shopping mall generated adjusted funds from the operations (FFO) – a key performance metric for REIT – of $ 20.7 million, or $ 0.26 per share. & nbsp; That exceeded the expectations of Wall Street FFO of $ 0.25. & nbsp; "data-reactid =" 14 "> The owner of the shopping center generated adjusted funds from operations (FFO) – a key performance metric for REITs: of $ 20.7 million, or $ 0.26 per share, which exceeded Wall's expectations Street for FFO of $ 0.25.

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "PREIT continues to progress with its portfolio optimization strategy, which includes the sale of lower level shopping centers and the replacement of departmental stores with stronger tenants. The occupancy rate of its main properties increased by 1 percentage point, to 94.7%. Mall sales per square foot reached a record high of $ 517. And net operating income in the same store increased 2.2% in the first quarter. & Nbsp; "data-reactid =" 15 "> PREIT continues to make progress with its portfolio optimization strategy, which includes the sale of lower-level shopping centers and the replacement of departmental stores with problems with stronger tenants. Main properties increased by 1 percentage point to 94.7% Sales at the central mall per square foot reached a record high of $ 517. Net operating income at the same store increased 2.2% in the first quarter.

PREIT is also using badet sales to strengthen its balance sheet, with $ 43 million raised from property sales so far in 2019.

A dollar bill folded in the shape of a line with an arrowhead that goes up, then falls, then goes back up

Image source: Getty Images.

Now what

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Even after today's gains, Pennsylvania Real Estate Investment Trust & # 39; s The share price is still down 27% in the last year. & Nbsp; But the company the change is already underway, and investors are beginning to have a more optimistic view of their future prospects. "data-reactid =" 30 "> Even after today's gains, the price of the Pennsylvania Real Estate Investment Trust shares is still down 27% over the past year, the change is already under way, and investors are starting to have a more optimistic view of their future prospects.

In addition, at $ 7.05 per share, PREIT shares currently produce a strong 11.9%. It is likely that the Pennsylvania REIT dividend will attract the attention of investors seeking income, particularly if the company can continue to improve its property portfolio, and by extension, its operating profits, in the coming months.

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 32 "> More from The Motley Fool

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Joe Tenebruso It has no position in any of the actions mentioned. The Motley Fool has no position in any of the mentioned actions. The Motley Fool has a disclosure policy."data-reactid =" 40 ">Joe Tenebruso has no position in any of the actions mentioned. The Motley Fool has no position in any of the mentioned actions. The Motley Fool has a disclosure policy.

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