Washington Prime Group Reports Second Quarter 2017 Results
COLUMBUS, OH - July 26, 2017 - Washington Prime Group Inc. (NYSE: WPG) today reported results for the second quarter ended June 30, 2017 that reflect continued progress on the execution of the Company’s financial, operating and strategic objectives.
Lou Conforti, CEO and Director stated: “We increased guidance for fiscal 2017 net income and reaffirmed guidance for adjusted FFO to the midpoint of $1.23 and $1.67 per diluted share, respectfully. The second quarter was best characterized by continued stability as it related to Tier 1 and Open Air assets, which collectively represent 80% of total portfolio NOI. In addition, our objectives of diversification and common area utilization are proving successful as we mix things up and administer a much needed shot of adrenalin to our assets.”
“During the quarter, our leasing team didn’t just backfill space, they approached the shuttering of fair-to-middling retailers as an opportunity to diversify our tenant mix. As a result, year-to-date leasing volume totaled 2.6 million square feet as of June 30, 2017. What is encouraging is the fact that 40% of new deals are Lifestyle tenants, including food and beverage, entertainment and fitness. Our hybrid town center concept, which incorporates both enclosed and open air formats, now constitutes 70% of our enclosed retail properties. Future redevelopment efforts will further this optimized model. On the topic of redevelopment, we currently have 54 projects ranging from between $1-$60 million with an average estimated project yield of 9.5%.”
“Successful innovation can manifest itself in a variety of ways. Within our space, it boils down to whether or not we are improving the logistics, distribution and delivery of goods and services, and as importantly, enhancing the experience for our guests. Whether it be rolling out Tangible, our eCommerce platform; locating local craft brewers ‘center court’; providing ‘outside the box’ installations such as pop up shops, trunk shows, vending machines, digital media or a combination thereof; our continued and growing association with Amazon; ongoing discussions with a leading entertainment company to have ‘up and coming’ acts perform at our assets; or our Shelby’s Sugar Shop candy stores, it is imperative we practice both art and science, as well as common sense as to what our demographic constituencies desire.”
“Bottom line: Washington Prime Group is not a landlord in the antiquated sense of the word. Rather, we are a company which works proactively to improve our existing tenancy, attract differentiated concepts and use every darn square foot of our space to create the dynamism our guests deserve. Our tenants shouldn’t be confined to the four walls which demarcate their leased space. While I’m not saying any of this is easy, it is achievable. Now back to work as we continue to grind it out.”
Second Quarter Results
Net income attributable to common shareholders for the second quarter of 2017 was $135.5 million, or $0.72 per diluted share, compared to $17.8 million, or $0.10 per diluted share, a year ago. The year-over-year improvement was largely attributable to a net gain of $125.4 million primarily related to the formation of an additional joint venture with O’Connor Mall Partners, L.P., an affiliate of O’Connor Capital Partners (“O’Connor”), as well as a $21.2 million gain
The following information was filed by Washington Prime Group Inc. (WPG) on Wednesday, July 26, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.