Boenning & Scattergood analyst Merrill Ross maintained a Hold rating on Pennsylvania Real Estate Investment (PEI) today. The company’s shares closed yesterday at $6.75.
Ross wrote:
“We believe adjusted FFO will decline from $1.54 in 2018 to $1.33 in 2019, and we are not at the bottom of the guidance range, which is estimated at $1.20/sh. Yet, the positives are tangible. PEI has no vacant department store space; there is turnover, but the spaces are leased. There are no expectations for closure of any of its Sears stores (now owned by ESL) or its JCPenney stores (JCP-$1.38-Not Rated). PEI owns two of Macy’s (M-$25.14-Not Rated) highest grossing retail stores, a remarkable statistic for a $3 billion mall property portfolio. The company reports improved traffic, higher sales per square foot (over $510 during 4Q18), and strong leasing spreads for 4Q18 (+6.3%). Does this sound like a dying company? Not to us. At the same time, there is still wood to chop. The balance sheet needs to be de-levered.”
According to TipRanks.com, Ross is a 2-star analyst with an average return of 0.0% and a 53.1% success rate. Ross covers the Financial sector, focusing on stocks such as Essential Properties Realty Trust Inc, Monmouth Real Estate Investment, and Easterly Government Properties.
The word on The Street in general, suggests a Moderate Sell analyst consensus rating for Pennsylvania Real Estate Investment with a $7 average price target.
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Based on Pennsylvania Real Estate Investment’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $78.78 million. In comparison, last year the company had a net profit of $7.6 million.
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Pennsylvania Real Estate Investment Trust engages in the ownership, management, leasing, acquisition, redevelopment, and disposition of shopping malls. It focuses on shopping malls located in the eastern half of the U.S. primarily in the Mid-Atlantic region. The company was founded in 1960 and is headquartered in Philadelphia, PA.
