Washington Prime Group Reports Third Quarter 2017 Results
COLUMBUS, OH - October 25, 2017 - Washington Prime Group Inc. (NYSE: WPG) today reported results for the third quarter ended September 30, 2017 that reflect continued progress on the execution of the Company’s financial, operating and strategic objectives.
Third Quarter Results
Net loss attributable to common shareholders for the third quarter of 2017 was $11.9 million, or $0.06 per diluted share, compared to income of $1.4 million, or $0.01 per diluted share, a year ago. The year-over-year difference was primarily attributable to higher interest expense in 2017 related to the August unsecured notes offering, lower net operating income related to the Company’s Tier 2 enclosed properties and decrease in amortization of lease intangibles.
Funds from Operations (“FFO”) for the third quarter of 2017 were $81.5 million, or $0.37 per diluted share. This compares to $100.8 million, or $0.46 per diluted share, during the same quarter a year ago. The decrease in FFO for the quarter primarily relates to dilution resulting from property dispositions and higher interest expense related to the unsecured notes offering.
Comparable net operating income (“NOI”) for the Company’s total portfolio decreased 1.4% during the third quarter of 2017, compared to a year ago. Comparable NOI growth for the Company’s 37 Tier 1 enclosed retail properties decreased by only 0.6% in the third quarter of 2017, compared to a year ago, demonstrating stable performance. Comparable NOI for the Company’s 51 open air centers increased 3.4% in the third quarter of 2017, compared to a year ago. Collectively, the Company’s Tier 1 enclosed retail properties and open air centers comprised 81% of total portfolio NOI as of September 30, 2017 with comparable NOI growth of 1.1% during the third quarter of 2017, compared to a year ago.
Reconciliations of FFO and comparable NOI (non-GAAP measures) to GAAP measures are included in this release.
Lou Conforti, CEO and Director stated: “The third quarter is best illustrated by several financial, strategic and operational actions which strengthened our balance sheet; streamlined decision making; resulted in meaningful arbitrage opportunities; furthered our objective of tenant diversification; and advanced our hybrid town center mandate which now constitutes 70% of assets we describe as enclosed.
“Occupancy was basically flat for the third quarter at 92.3%. A 1.4% decline in comparable NOI warrants further explanation. The decline was primarily attributable to previously reported bankruptcies and judiciousness on our part to focus upon prospects whose presence actually benefits our assets. Breaking it down, comparable NOI growth for Tier 1 assets decreased 0.6%, open air assets increased 3.4%, and Tier 2 assets decreased 9.1%. While any shortcoming whatsoever drives me crazy, as long as it is within an anticipated minimal variance and results from our being deliberate about properly curating tenants, I am confident this measured approach will better serve our assets in the long run.
The following information was filed by Washington Prime Group Inc. (WPG) on Thursday, October 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.