What happened Shares of Pennsylvania Real Estate Investment Trust (NYSE: PEI) popped 16.3% higher on Friday, following the release of the company's first-quarter results. So what The mall owner generated adjusted funds from operations (FFO) -- a key profitability metric for REITs -- of $20.7 million, or $0.26 per share. That came in above Wall Street's expectations for FFO of $0.25. PREIT continues to make progress with its portfolio optimization strategy, which includes selling off lower-tier malls and replacing struggling department stores with stronger tenants. The occupancy rate for its core properties increased by 1 percentage point, to 94.7%. Core mall sales per square foot reached a record high of $517. And same-store net operating income rose 2.2% in the first quarter. PREIT is also using asset sales to strengthen its balance sheet, with $43 million raised from property sales so far in 2019. Image source: Getty Images. Now what Even after today's gains, Pennsylvania Real Estate Investment Trust's stock price is still down 27% over the past year. But the company's turnaround is already underway, and investors are beginning to take a more optimistic view of its future prospects. Moreover, at $7.05 per share, PREIT's stock currently yields a hefty 11.9%. Pennsylvania REIT's dividend is likely to draw attention from income-seeking investors, particularly if the company can continue to upgrade its property portfolio -- and by extension, its operating profits -- in the months ahead. 10 stocks we like better than Pennsylvania REITWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Pennsylvania REIT wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of March 1, 2019Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source