Pennsylvania Real Estate Investment Trust (PEI) reported first-quarter results yesterday that were below consensus expectations on the top line but came in ahead on the bottom line, causing the company to raise guidance for the full year.
Pennsylvania REIT reported revenues for the three months ended March 31 of $106 million, up 3% from the same period last year when it recorded revenues just under $103 million. With funds from operations (FFO) of $24.2 million recorded in the first quarter, down $0.8 million from last year, the REIT now expects full-year FFO to be in the range of $2.00 to $2.08 per share, some 2% ahead of the $1.95 to $2.05 per share it previously pegged FFO to come in at.
Pennsylvania REIT CEO Joseph F. Coradino said, "We are off to a strong start in 2013. During the first quarter, we delivered strong operating results, increased the dividend on our common shares, refinanced property-level debt at lower interest rates, disposed of non-core assets improving the quality of our portfolio, and last week refinanced our credit facility on highly favorable terms."
The REIT's portfolio sales per square foot rose to $381; its same store occupancy rates at malls including its anchor stores was 93%, ahead of last year's 91.7% occupancy rate. Even without the anchor stores, rates were above the year-ago period. The company's portfolio of 46 properties consists of 36 shopping malls, seven community and power centers, and three development properties.
