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SAFE HARBOR: Some of the information contained in this presentation includes forward looking statements. Such statements are subject to a number of risks and uncertainties which could cause actual results in the future to differ materially and adversely from those described in the forward-looking statements. Investors should consult the Company's filings with the Securities and Exchange Commission for a description of the various risks and uncertainties which could cause such a difference before deciding whether to invest.
Table of Contents | |||
Page | |||
Financial Statement Data | |||
Consolidated statements of operations (unaudited) | 1 | ||
Consolidated balance sheets (unaudited) | 2 | ||
Supplemental balance sheet detail | 3 | ||
Components of rental income, other income and corporate overhead | 4 | ||
Reconciliation of funds from operations - including pro-rata share of unconsolidated properties | 5 | ||
Reconciliation of net operating income growth for comparable properties - including pro-rata share of unconsolidated properties | 6 | ||
Debt Information | |||
Summary of debt | 7 | ||
EBITDAre and key balance sheet metrics | 8 | ||
Key guidance assumptions | 9 | ||
Operational Data | |||
Operating metrics | 10 | ||
Leasing results and base rent psf | 11 | ||
Releasing spreads | 12 | ||
Top 10 tenants | 13 | ||
Lease expirations | 14 | ||
Development Activity | |||
Capital expenditures | 15 | ||
Redevelopment projects | 16 | ||
Department store repositioning status | 17 | ||
Property Information | |||
Property information | 18-20 | ||
Other | |||
Non-GAAP pro-rata financial information | 21 | ||
Proportionate share of unconsolidated properties - statements of operations (unaudited) | 22 | ||
Proportionate share of unconsolidated properties - balance sheet (unaudited) | 23 | ||
Glossary of terms | 24 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
Washington Prime Group Inc. | ||||||||
(Unaudited, dollars in thousands, except per share data) | ||||||||
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Revenue: | ||||||||
Rental income (see components on page 4) | $ | 163,273 | $ | 172,417 | ||||
Other income (see components on page 4) | 5,550 | 4,577 | ||||||
Total revenues | 168,823 | 176,994 | ||||||
Expenses: | ||||||||
Property operating | (39,429 | ) | (36,366 | ) | ||||
Real estate taxes | (22,114 | ) | (22,041 | ) | ||||
Advertising and promotion | (1,893 | ) | (1,771 | ) | ||||
Total recoverable expenses | (63,436 | ) | (60,178 | ) | ||||
Depreciation and amortization | (66,378 | ) | (61,294 | ) | ||||
General and administrative | (14,125 | ) | (9,654 | ) | ||||
Ground rent | (203 | ) | (197 | ) | ||||
Total operating expenses | (144,142 | ) | (131,323 | ) | ||||
Interest expense, net | (36,830 | ) | (34,344 | ) | ||||
Gain on disposition of interests in properties, net | 9,990 | 8,181 | ||||||
Income and other taxes | (356 | ) | (485 | ) | ||||
(Loss) income from unconsolidated entities, net | (48 | ) | 1,162 | |||||
Net (loss) income | (2,563 | ) | 20,185 | |||||
Net (loss) income attributable to noncontrolling interests | (896 | ) | 2,661 | |||||
Net (loss) income attributable to the Company | (1,667 | ) | 17,524 | |||||
Less: Preferred share dividends | (3,508 | ) | (3,508 | ) | ||||
Net (loss) income attributable to common shareholders | $ | (5,175 | ) | $ | 14,016 | |||
(Loss) earnings per common share, basic and diluted | $ | (0.03 | ) | $ | 0.07 | |||
SUPPLEMENTAL INFORMATION | 1
CONSOLIDATED BALANCE SHEETS | ||||||||
Washington Prime Group Inc. | ||||||||
(Unaudited, dollars in thousands) | ||||||||
March 31, | December 31, | |||||||
2019 | 2018 | |||||||
Assets: | ||||||||
Investment properties at cost | $ | 5,889,822 | $ | 5,879,637 | ||||
Construction in progress | 43,963 | 35,068 | ||||||
5,933,785 | 5,914,705 | |||||||
Less: accumulated depreciation | 2,334,130 | 2,283,764 | ||||||
3,599,655 | 3,630,941 | |||||||
Cash and cash equivalents | 29,244 | 42,542 | ||||||
Tenant receivables and accrued revenue, net (see components on page 3) | 81,849 | 85,463 | ||||||
Investment in and advances to unconsolidated entities, at equity | 428,130 | 433,207 | ||||||
Deferred costs and other assets (see components on page 3) | 171,422 | 169,135 | ||||||
Total assets | $ | 4,310,300 | $ | 4,361,288 | ||||
Liabilities: | ||||||||
Mortgage notes payable | $ | 978,823 | $ | 983,269 | ||||
Notes payable | 983,542 | 982,697 | ||||||
Unsecured term loans | 685,792 | 685,509 | ||||||
Revolving credit facility | 341,288 | 286,002 | ||||||
Accounts payable, accrued expenses, intangibles, and deferred revenues (see components on page 3) | 216,172 | 253,862 | ||||||
Distributions payable | 2,992 | 2,992 | ||||||
Cash distributions and losses in unconsolidated entities, at equity | 15,421 | 15,421 | ||||||
Total liabilities | 3,224,030 | 3,209,752 | ||||||
Redeemable noncontrolling interests | 3,265 | 3,265 | ||||||
Equity: | ||||||||
Stockholders' equity | ||||||||
Series H Cumulative Redeemable Preferred Stock | 104,251 | 104,251 | ||||||
Series I Cumulative Redeemable Preferred Stock | 98,325 | 98,325 | ||||||
Common stock | 19 | 19 | ||||||
Capital in excess of par value | 1,249,490 | 1,247,639 | ||||||
Accumulated deficit | (509,187 | ) | (456,924 | ) | ||||
Accumulated other comprehensive income | 2,082 | 6,400 | ||||||
Total stockholders' equity | 944,980 | 999,710 | ||||||
Noncontrolling interests | 138,025 | 148,561 | ||||||
Total equity | 1,083,005 | 1,148,271 | ||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 4,310,300 | $ | 4,361,288 |
SUPPLEMENTAL INFORMATION | 2
SUPPLEMENTAL BALANCE SHEET DETAIL | |||||||
Washington Prime Group Inc. | |||||||
(unaudited, dollars in thousands) | |||||||
March 31, | December 31, | ||||||
2019 | 2018 | ||||||
Tenant receivables and accrued revenue, net: | |||||||
Straight-line receivable | $ | 39,150 | $ | 38,874 | |||
Tenant receivable | 13,597 | 13,430 | |||||
Unbilled receivables and other | 40,274 | 42,365 | |||||
Allowance for doubtful accounts, net | (11,172 | ) | (9,206 | ) | |||
Total | $ | 81,849 | $ | 85,463 | |||
Deferred costs and other assets: | |||||||
Deferred leasing and corporate improvements, net | $ | 68,599 | $ | 74,260 | |||
In place lease intangibles, net | 34,966 | 38,453 | |||||
Acquired above market lease intangibles, net | 17,261 | 18,827 | |||||
Right of use asset (1) | 14,037 | — | |||||
Mortgage and other escrow deposits | 17,324 | 18,542 | |||||
Prepaids, notes receivable and other assets, net | 19,235 | 19,053 | |||||
Total | $ | 171,422 | $ | 169,135 | |||
Accounts payable, accrued expenses, intangibles and deferred revenues: | |||||||
Accounts payable and accrued expenses | $ | 119,148 | $ | 156,685 | |||
Below market lease intangibles, net | 62,180 | 66,651 | |||||
Lease liability (1) | 14,037 | — | |||||
Deferred revenues and deposits | 20,807 | 30,526 | |||||
Total | $ | 216,172 | $ | 253,862 | |||
(1) The new lease accounting standard effective January 1, 2019 required recognition on the balance sheet, of certain leases, which primarily relate to our corporate offices and property ground leases. | |||||||
SUPPLEMENTAL INFORMATION | 3
COMPONENTS OF RENTAL INCOME, OTHER INCOME AND CORPORATE OVERHEAD | |||||||||
Washington Prime Group Inc. | |||||||||
(unaudited, dollars in thousands) | |||||||||
Three Months Ended March 31, | |||||||||
2019 | 2018 | ||||||||
Components of Rental Income: | |||||||||
Base rent | $ | 109,793 | $ | 115,553 | |||||
Mark-to-market adjustment | 2,906 | 3,048 | |||||||
Straight-line rents | 1,132 | 859 | |||||||
Temporary tenant rents | 3,804 | 3,879 | |||||||
Overage rent | 2,378 | 2,014 | |||||||
Tenant reimbursements | 45,454 | 48,644 | |||||||
Lease termination income | 786 | 1,766 | |||||||
Change in estimate of collectibility of rental income | (2,980 | ) | (3,346 | ) | |||||
Total Rental Income | $ | 163,273 | $ | 172,417 | |||||
Components of Other Income: | |||||||||
Sponsorship and other ancillary property income | $ | 1,755 | $ | 1,649 | |||||
Fee income | 2,747 | 2,342 | |||||||
Other | 1,048 | 586 | |||||||
Total Other Income | $ | 5,550 | $ | 4,577 | |||||
Components of Corporate Overhead: | |||||||||
General & administrative - other | $ | 9,900 | $ | 8,915 | |||||
General & administrative - internal leasing costs (1) | 4,225 | 739 | |||||||
Internal corporate overhead allocated to operating expense | 5,653 | 5,220 | |||||||
Total Corporate Overhead | $ | 19,778 | $ | 14,874 | |||||
(1) Certain internal leasing costs that were previously deferred are expensed to general and administrative costs under the new lease accounting standard that became effective January 1, 2019. |
SUPPLEMENTAL INFORMATION | 4
RECONCILIATION OF FUNDS FROM OPERATIONS | ||||||||
Including Pro-Rata Share of Unconsolidated Properties | ||||||||
Washington Prime Group Inc. | ||||||||
(unaudited, dollars in thousands, except per share data) | ||||||||
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Funds from Operations ("FFO"): | ||||||||
Net (loss) income | $ | (2,563 | ) | $ | 20,185 | |||
Less: Preferred dividends and distributions on preferred operating partnership units | (3,568 | ) | (3,568 | ) | ||||
Real estate depreciation and amortization, including joint venture impact | 76,214 | 70,199 | ||||||
Gain on disposition of interests in properties, net | — | (295 | ) | |||||
FFO | $ | 70,083 | $ | 86,521 | ||||
Weighted average common shares outstanding - diluted | 223,208 | 223,278 | ||||||
FFO per diluted share | $ | 0.31 | $ | 0.39 | ||||
Non-cash items included in FFO: | ||||||||
Non-cash stock compensation expense | $ | 1,815 | $ | 1,742 | ||||
Straight-line adjustment as an increase to minimum rents (1) | $ | 1,487 | $ | 1,315 | ||||
Straight-line and fair market value adjustment recorded as an increase to ground lease expense (1) | $ | 484 | $ | 566 | ||||
Fair value of debt amortized as a decrease to interest expense (1) | $ | 924 | $ | 1,006 | ||||
Loan fee amortization and bond discount (1) | $ | 1,787 | $ | 3,022 | ||||
Mark-to-market/inducement adjustment as a net increase to base rents (1) | $ | 4,291 | $ | 4,558 | ||||
Non-real estate depreciation (1) | $ | 2,405 | $ | 2,558 | ||||
(1) Includes the pro-rata share of the joint venture properties. | ||||||||
SUPPLEMENTAL INFORMATION | 5
RECONCILIATION OF NET OPERATING INCOME GROWTH FOR COMPARABLE PROPERTIES | |||||||||||||||
Including Pro-Rata Share of Unconsolidated Properties | |||||||||||||||
Washington Prime Group Inc. | |||||||||||||||
(unaudited, dollars in thousands) | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||
2019 | 2018 | Variance $ | |||||||||||||
Reconciliation of Comp NOI to Net (Loss) Income: | |||||||||||||||
Net (Loss) Income | $ | (2,563 | ) | $ | 20,185 | $ | (22,748 | ) | |||||||
Loss (income) from unconsolidated entities | 48 | (1,162 | ) | 1,210 | |||||||||||
Income and other taxes | 356 | 485 | (129 | ) | |||||||||||
Gain on disposition of interests in properties, net | (9,990 | ) | (8,181 | ) | (1,809 | ) | |||||||||
Interest expense, net | 36,830 | 34,344 | 2,486 | ||||||||||||
Operating Income | 24,681 | 45,671 | (20,990 | ) | |||||||||||
Depreciation and amortization | 66,378 | 61,294 | 5,084 | ||||||||||||
General and administrative | 14,125 | 9,654 | 4,471 | ||||||||||||
Fee income | (2,747 | ) | (2,342 | ) | (405 | ) | |||||||||
Management fee allocation | 5 | (16 | ) | 21 | |||||||||||
Pro-rata share of unconsolidated joint ventures in comp NOI | 17,445 | 17,282 | 163 | ||||||||||||
Property allocated corporate expense | 3,495 | 4,124 | (629 | ) | |||||||||||
Non-comparable properties and other (1) | (311 | ) | (591 | ) | 280 | ||||||||||
NOI from sold properties | 2 | (1,796 | ) | 1,798 | |||||||||||
Termination income | (786 | ) | (1,766 | ) | 980 | ||||||||||
Straight-line rents | (1,132 | ) | (859 | ) | (273 | ) | |||||||||
Ground lease adjustments for straight-line and fair market value | 5 | 13 | (8 | ) | |||||||||||
Fair market value and inducement adjustments to base rents | (2,900 | ) | (3,042 | ) | 142 | ||||||||||
Less: Tier 2 and noncore properties (2) | (8,938 | ) | (13,743 | ) | 4,805 | ||||||||||
Comparable NOI - Tier 1 and Open Air properties | $ | 109,322 | $ | 113,883 | $ | (4,561 | ) | ||||||||
Comparable NOI percentage change - Tier 1 and Open Air properties | -4.0 | % | |||||||||||||
(1) Represents an adjustment to remove the NOI amounts from properties not owned and operated in all periods presented, certain non-recurring expenses (such as hurricane related expenses), as well as material insurance proceeds and other non-recurring income received in the periods presented. This also includes adjustments related to the rents from the outparcels sold to Four Corners. | |||||||||||||||
(2) NOI from the Tier 2 and noncore properties held in each period presented. | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||
2019 | 2018 | Variance $ | Variance % | ||||||||||||
Comparable Property Net Operating Income (Comp NOI) | |||||||||||||||
Revenue: | |||||||||||||||
Minimum rent | $ | 115,799 | $ | 118,315 | $ | (2,516 | ) | -2.1 | % | ||||||
Overage rent | 2,803 | 2,047 | 756 | 36.9 | % | ||||||||||
Tenant reimbursements | 46,308 | 47,831 | (1,523 | ) | -3.2 | % | |||||||||
Change in estimate of collectibility of rental income | (2,298 | ) | (2,726 | ) | 428 | -15.7 | % | ||||||||
Other | 1,804 | 1,656 | 148 | 8.9 | % | ||||||||||
Total revenue | 164,416 | 167,123 | (2,707 | ) | -1.6 | % | |||||||||
Expenses: | |||||||||||||||
Recoverable expenses - operating | (31,975 | ) | (30,252 | ) | (1,723 | ) | -5.7 | % | |||||||
Recoverable expenses - real estate taxes | (21,913 | ) | (21,860 | ) | (53 | ) | -0.2 | % | |||||||
Ground rent | (1,206 | ) | (1,128 | ) | (78 | ) | -6.9 | % | |||||||
Total operating expenses | (55,094 | ) | (53,240 | ) | (1,854 | ) | -3.5 | % | |||||||
Comp NOI - Excluding Tier 2 and Noncore properties | $ | 109,322 | $ | 113,883 | $ | (4,561 | ) | -4.0 | % | ||||||
Comp NOI - Tier 1 enclosed retail properties | $ | 77,814 | $ | 82,557 | $ | (4,743 | ) | -5.7 | % | ||||||
Comp NOI - Open Air properties | $ | 31,508 | $ | 31,326 | $ | 182 | 0.6 | % |
SUPPLEMENTAL INFORMATION | 6
SUMMARY OF DEBT | |||||||||||||||||||||||||||||||||||||||
Washington Prime Group Inc. | |||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Total Debt as of 3/31/2019 | Total Debt, Including WPG Share of Unconsolidated Entities as of 3/31/2019 | Total Debt as of 12/31/2018 | Total Debt, Including WPG Share of Unconsolidated Entities as of 12/31/2018 | Schedule of Maturities by Year (1) | Mortgage Debt Maturities | Weighted Avg. Interest Rate | Unsecured Maturities | Weighted Avg. Interest Rate | Total Debt Maturities | Weighted Avg. Interest Rate | |||||||||||||||||||||||||||||
Consolidated debt: | Total debt, including WPG share of unconsolidated entities: | ||||||||||||||||||||||||||||||||||||||
Mortgage debt | |||||||||||||||||||||||||||||||||||||||
Fixed | $ | 911,134 | $ | 911,134 | $ | 915,276 | $ | 915,276 | 2019 | $ | 48,003 | 7.5% | $ | 48,003 | 7.5% | ||||||||||||||||||||||||
Variable | 65,000 | 65,000 | 65,000 | 65,000 | 2020 | 106,219 | 5.9% | $ | 250,000 | 3.9% | 356,219 | 4.5% | |||||||||||||||||||||||||||
Debt issuance costs | (2,500 | ) | (2,500 | ) | (2,771 | ) | (2,771 | ) | 2021 | 354,628 | 4.8% | — | 354,628 | 4.8% | |||||||||||||||||||||||||
Fair value debt adjustments | 5,189 | 5,189 | 5,764 | 5,764 | 2022 | 131,599 | 4.4% | 695,000 | 4.4% | 826,599 | 4.4% | ||||||||||||||||||||||||||||
Total mortgage debt | 978,823 | 978,823 | 983,269 | 983,269 | 2023 | 62,773 | 4.7% | 340,000 | 4.1% | 402,773 | 4.2% | ||||||||||||||||||||||||||||
2024 | 341,240 | 5.2% | 750,000 | 6.0% | (2 | ) | 1,091,240 | 5.7% | |||||||||||||||||||||||||||||||
Unsecured debt | 2025 | 343,587 | 3.7% | — | 343,587 | 3.7% | |||||||||||||||||||||||||||||||||
Credit facility | 345,000 | 345,000 | 290,000 | 290,000 | 2026 | 12,518 | 4.3% | — | 12,518 | 4.3% | |||||||||||||||||||||||||||||
Term loans | 690,000 | 690,000 | 690,000 | 690,000 | 2027 | 194,161 | 4.3% | — | 194,161 | 4.3% | |||||||||||||||||||||||||||||
Bonds payable | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 2028 | — | 0.0% | — | — | 0.0% | |||||||||||||||||||||||||||||
Debt issuance costs & discounts | (24,378 | ) | (24,378 | ) | (25,792 | ) | (25,792 | ) | 2029 | — | 0.0% | — | — | 0.0% | |||||||||||||||||||||||||
Total unsecured debt | 2,010,622 | 2,010,622 | 1,954,208 | 1,954,208 | Thereafter | 1,991 | 4.7% | — | 1,991 | 4.7% | |||||||||||||||||||||||||||||
Fair value,debt issuance cost, and debt discount adjustments | 5,373 | (24,378 | ) | (19,005 | ) | ||||||||||||||||||||||||||||||||||
Total consolidated debt | $ | 2,989,445 | $ | 2,989,445 | $ | 2,937,477 | $ | 2,937,477 | Total debt | $ | 1,602,092 | 4.7% | $ | 2,010,622 | 4.9% | $ | 3,612,714 | 4.8% | |||||||||||||||||||||
Unconsolidated debt: | (1) Includes extension options | ||||||||||||||||||||||||||||||||||||||
Mortgage loans payable | $ | 1,285,273 | $ | 620,585 | $ | 1,287,229 | $ | 624,964 | (2) The Senior Notes bear interest at a rate of 6.0% per annum through August 14, 2019, at which time the interest rate will increase to 6.5% per annum due to the credit downgrade. | ||||||||||||||||||||||||||||||
Debt issuance costs | (4,747 | ) | (2,339 | ) | (4,962 | ) | (2,451 | ) | |||||||||||||||||||||||||||||||
Fair value debt adjustments | 9,849 | 5,023 | 10,534 | 5,372 | Schedule of Maturities by Year (1) | Mortgage Debt Maturities | Weighted Avg. Interest Rate | Unsecured Maturities | Weighted Avg. Interest Rate | Total Debt Maturities | Weighted Avg. Interest Rate | ||||||||||||||||||||||||||||
Total unconsolidated debt | $ | 1,290,375 | $ | 623,269 | $ | 1,292,801 | $ | 627,885 | |||||||||||||||||||||||||||||||
Total debt: | $ | 4,279,820 | $ | 3,612,714 | $ | 4,230,278 | $ | 3,565,362 | Total consolidated debt: | ||||||||||||||||||||||||||||||
% of Total Debt as of 3/31/19 | Our Share of Total Debt as of 3/31/19 | Weighted Avg. Interest Rate | Weighted Avg. Years to Maturity | 2019 | $ | 48,003 | 7.5% | $ | 48,003 | 7.5% | |||||||||||||||||||||||||||||
2020 | 81,328 | 5.7% | $ | 250,000 | 3.9% | 331,328 | 4.3% | ||||||||||||||||||||||||||||||||
2021 | 317,773 | 4.7% | — | 317,773 | 4.7% | ||||||||||||||||||||||||||||||||||
Consolidated debt: | 2022 | 131,599 | 4.4% | 695,000 | 4.4% | 826,599 | 4.4% | ||||||||||||||||||||||||||||||||
Fixed | 83% | $ | 2,487,365 | 5.1 | % | 3.9 | 2023 | 56,191 | 4.7% | 340,000 | 4.1% | 396,191 | 4.1% | ||||||||||||||||||||||||||
Variable | 17% | 502,080 | 4.3 | % | 3.6 | 2024 | 341,240 | 5.2% | 750,000 | 6.0% | (2 | ) | 1,091,240 | 5.7% | |||||||||||||||||||||||||
Total Consolidated | 100% | $ | 2,989,445 | 4.9 | % | 3.8 | Fair value,debt issuance cost, and debt discount adjustments | 2,689 | (24,378 | ) | (21,689 | ) | |||||||||||||||||||||||||||
Total debt | $ | 978,823 | 5.0% | $ | 2,010,622 | 4.9% | $ | 2,989,445 | 4.9% | ||||||||||||||||||||||||||||||
Unconsolidated debt: | |||||||||||||||||||||||||||||||||||||||
Fixed | 99% | $ | 616,687 | 4.1 | % | 6.3 | (1) Includes extension options | ||||||||||||||||||||||||||||||||
Variable | 1% | 6,582 | 5.0 | % | 3.8 | (2) The Senior Notes bear interest at a rate of 6.0% per annum through August 14, 2019, at which time the interest rate will increase to 6.5% per annum due to the credit downgrade. | |||||||||||||||||||||||||||||||||
Total Unconsolidated | 100% | $ | 623,269 | 4.1 | % | 6.3 | |||||||||||||||||||||||||||||||||
Total debt: | |||||||||||||||||||||||||||||||||||||||
Fixed | 86% | $ | 3,104,052 | 4.9 | % | 4.3 | |||||||||||||||||||||||||||||||||
Variable | 14% | 508,662 | 4.4 | % | 3.6 | ||||||||||||||||||||||||||||||||||
Total debt | 100% | $ | 3,612,714 | 4.8 | % | 4.2 |
SUPPLEMENTAL INFORMATION | 7
EBITDAre AND KEY BALANCE SHEET METRICS | ||||||||||
Washington Prime Group Inc. | ||||||||||
(dollars in thousands) | ||||||||||
Three Months Ended March 31, | ||||||||||
2019 | 2018 | |||||||||
Calculation of EBITDAre: | ||||||||||
Net (loss) income | $ | (2,563 | ) | $ | 20,185 | |||||
Interest expense, net | 36,830 | 34,344 | ||||||||
Income and other taxes | 356 | 485 | ||||||||
Depreciation and amortization | 66,378 | 61,294 | ||||||||
Gain on disposition of interests in properties, net | — | (295 | ) | |||||||
Pro-rata share of unconsolidated entities, net | 18,409 | 17,631 | ||||||||
EBITDAre (1)(2) | $ | 119,410 | $ | 133,644 | ||||||
Bond Covenant Requirement (3) | As of March 31, 2019 | |||||||||
Key Balance Sheet Metrics: | Ratio | |||||||||
Total indebtedness to Total assets | ≤ 60% | 53.3% | ||||||||
Secured indebtedness to Total assets | ≤ 40% | 17.3% | ||||||||
Consolidated EBITDA / Annual service charge | ≥ 1.5x | 2.65x | ||||||||
Total unencumbered assets / Total unsecured indebtedness | > 150% | 198% | ||||||||
(1) EBITDAre is calculated consistent with the NAREIT definition. | ||||||||||
(2) EBITDAre includes the expensing of internal leasing costs of $4,225 and $739 for the quarter ended March 31, 2019 and 2018, respectively. | ||||||||||
(3) The covenants detailed are from the August 2017 Bond Offering. |
SUPPLEMENTAL INFORMATION | 8
KEY GUIDANCE ASSUMPTIONS | |||
Washington Prime Group Inc. | |||
2019 Guidance | |||
Fiscal Year 2019 | |||
Guidance | |||
Earnings Expectations: | |||
FFO per share, as adjusted - diluted (1) | $1.16 to $1.24 | ||
FFO per share, as adjusted - diluted - second quarter | $0.25 to $0.28 | ||
Underlying Assumptions to 2019 Guidance (1): | |||
Comparable NOI growth for Tier 1 and Open Air (Core) properties- fiscal year 2019 (2) (3) | approximately (1.0) to (3.0)% | ||
Corporate overhead and general and administrative expenses (excluded from property NOI) (4) | $70-$74 million | ||
Non-cash adjustments for purchase accounting and straight line rents (3) | $17-$19 million | ||
Assumed property sales | None | ||
Assumed joint venture transactions | None | ||
Assumed acquisition | None | ||
Assumed lender transitions (guidance excludes any related gain from debt extinguishment) | 1 to 3 properties | ||
Gain from sale of outparcels (primarily relates to Four Corners transactions) | $15 to $17 million | ||
Redevelopment spend (3) | $100 to $125 million | ||
Recurring capital expenditures and deferred leasing costs | $55 to $65 million | ||
Distributions per common share and units | $0.25 per diluted share quarterly | ||
(1) Guidance excludes gains from debt extinguishment. | |||
(2) Excludes NOI of approximately $37 to $40 million related to Tier 2 and noncore properties. | |||
(3) Includes pro-rata share of joint venture properties | |||
(4) Includes $2 million of Q1 2019 severance cost related to open air region leadership restructuring, as well as approximately $16 million of leasing costs that were previously deferred under prior accounting standard | |||
SUPPLEMENTAL INFORMATION | 9
OPERATING METRICS | |||||||||||||||||||||||
Washington Prime Group Inc. | |||||||||||||||||||||||
As of March 31, 2019 | |||||||||||||||||||||||
PORTFOLIO SUMMARY | |||||||||||||||||||||||
Property Count | Leased Occupancy % (1) | Store Sales Per Square Foot for 12 Months Ended (1) | Store Occupancy Cost % (1) | % of Total Comp NOI for 3 Months Ended 3/31/19 | NOI Growth for 12 Months Ended 3/31/19 | Releasing Spreads Trailing Twelve Months Ended 2019 | |||||||||||||||||
3/31/19 | 3/31/18 | 3/31/19 | 3/31/18 | 3/31/19 | 3/31/18 | ||||||||||||||||||
Open Air Properties | 51 | 94.7% | 95.3% | 26.7% | 0.6% | 2.9% | |||||||||||||||||
Tier 1 Enclosed Retail Properties | 42 | 92.1% | 92.3% | $ | 399 | $ | 400 | 11.7% | 11.9% | 66.0% | -5.7% | -7.4% | |||||||||||
Tier 1 and Open Air | 93 | 93.3% | 93.7% | 92.7% | -4.0% | -5.2% | |||||||||||||||||
ENCLOSED RETAIL PROPERTY TIERS | |||||||||||||||||||||||
TIER 1 | TIER 2 / NONCORE | ||||||||||||||||||||||
TIER 2 | |||||||||||||||||||||||
Arbor Hills | Mesa Mall | Anderson Mall | |||||||||||||||||||||
Arboretum, The | Morgantown Mall | Boynton Beach Mall | |||||||||||||||||||||
Ashland Town Center | Northtown Mall | Chautauqua Mall | |||||||||||||||||||||
Bowie Town Center | Northwoods Mall | Indian Mound Mall | |||||||||||||||||||||
Brunswick Square | Oklahoma City Properties | Lima Mall | |||||||||||||||||||||
Clay Terrace | Orange Park Mall | Maplewood Mall | |||||||||||||||||||||
Cottonwood Mall | Paddock Mall | New Towne Mall | |||||||||||||||||||||
Dayton Mall | Pearlridge Center | Oak Court Mall | |||||||||||||||||||||
Edison Mall | Polaris Fashion Place | Rolling Oaks Mall | |||||||||||||||||||||
Grand Central Mall | Port Charlotte Town Center | Sunland Park Mall | |||||||||||||||||||||
Great Lakes Mall | Scottsdale Quarter | ||||||||||||||||||||||
Irving Mall | Southern Hills Mall | NONCORE | |||||||||||||||||||||
Jefferson Valley Mall | Southern Park Mall | Charlottesville Fashion Square | |||||||||||||||||||||
Lincolnwood Town Center | Southgate Mall | Muncie Mall | |||||||||||||||||||||
Lindale Mall | The Outlet Collection | Seattle | Seminole Towne Center | |||||||||||||||||||||
Longview Mall | Town Center at Aurora | Towne West Square | |||||||||||||||||||||
Malibu Lumber Yard | Town Center Crossing & Plaza | West Ridge Mall | |||||||||||||||||||||
Mall at Fairfield Commons, The | Waterford Lakes Town Center | ||||||||||||||||||||||
Mall at Johnson City, The | Weberstown Mall | ||||||||||||||||||||||
Markland Mall | Westminster Mall | ||||||||||||||||||||||
Melbourne Square | WestShore Plaza | ||||||||||||||||||||||
(1) Metrics include properties owned and managed as of March 31, 2019, and exclude Tier 2 and Noncore properties. | |||||||||||||||||||||||
SUPPLEMENTAL INFORMATION | 10
LEASING RESULTS AND BASE RENT PSF | ||||||||||||||||||||||||||||||||||||||||||||||||||
Washington Prime Group Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year-to-date through March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Leasing Results- Comparable Properties | ||||||||||||||||||||||||||||||||||||||||||||||||||
No Exclusions | ||||||||||||||||||||||||||||||||||||||||||||||||||
2019 Year-to-Date | Change from Prior YTD | |||||||||||||||||||||||||||||||||||||||||||||||||
New | Renewal | Total | Total | |||||||||||||||||||||||||||||||||||||||||||||||
# of Deals | Sqft | # of Deals | Sqft | # of Deals | Sqft | # of Deals | Sqft | |||||||||||||||||||||||||||||||||||||||||||
Tier 1 Enclosed Retail Properties | 33 | 331,288 | 166 | 533,257 | 199 | 864,545 | 9% | 9% | ||||||||||||||||||||||||||||||||||||||||||
Open Air Properties | 12 | 81,291 | 21 | 182,119 | 33 | 263,410 | 14% | 72% | ||||||||||||||||||||||||||||||||||||||||||
Total Tier 1 and Open Air | 45 | 412,579 | 187 | 715,376 | 232 | 1,127,955 | 10% | 20% | ||||||||||||||||||||||||||||||||||||||||||
Tier 2 and Noncore Properties | 8 | 49,299 | 46 | 207,101 | 54 | 256,400 | 10% | 19% | ||||||||||||||||||||||||||||||||||||||||||
Grand Total | 53 | 461,878 | 233 | 922,477 | 286 | 1,384,355 | 10% | 20% | ||||||||||||||||||||||||||||||||||||||||||
Leasing Results | ||||||||||||||||||||||||||||||||||||||||||||||||||
Small Shop Deals for Enclosed Properties; Anchor and Small Shop Deals for Open Air | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Square Feet | Base Rent PSF | Average Term | Tenant Allow.$(000)s | Tenant Allow. PSF | |||||||||||||||||||||||||||||||||||||||||||||
of Leases | New | Renewal | Total | New | Renewal | Total | New | Renewal | Total | New | Renewal | New | Renewal | |||||||||||||||||||||||||||||||||||||
Tier 1 Enclosed Retail Properties | 119 | 77,842 | 266,282 | 344,124 | $ | 32.68 | $ | 32.07 | $ | 32.21 | 8.2 | 3.5 | 4.5 | $ | 4,686 | $ | 2,873 | $ | 60.19 | $ | 10.79 | |||||||||||||||||||||||||||||
Open Air Properties | 29 | 80,282 | 172,967 | 253,249 | $ | 15.38 | $ | 19.56 | $ | 18.24 | 8.1 | 6.4 | 7.1 | $ | 2,330 | $ | 4,417 | $ | 29.03 | $ | 25.54 | |||||||||||||||||||||||||||||
Total Tier 1 and Open Air | 148 | 158,124 | 439,249 | 597,373 | $ | 23.90 | $ | 27.15 | $ | 26.29 | 8.2 | 4.0 | 5.0 | $ | 7,016 | $ | 7,290 | $ | 44.37 | $ | 16.60 | |||||||||||||||||||||||||||||
Tier 2 and Noncore Properties | 26 | 16,894 | 51,752 | 68,646 | $ | 25.33 | $ | 23.19 | $ | 23.71 | 4.4 | 2.7 | 3.1 | $ | 175 | $ | — | $ | 10.36 | $ | — | |||||||||||||||||||||||||||||
Total | 174 | 175,018 | 491,001 | 666,019 | $ | 24.03 | $ | 26.73 | $ | 26.02 | 7.6 | 3.8 | 4.8 | $ | 7,191 | $ | 7,290 | $ | 41.09 | $ | 14.85 | |||||||||||||||||||||||||||||
Note: The table above includes leasing results for enclosed properties for stores of 10,000 SF or less, also anchors and office leases are excluded. For open air properties, office leases are excluded. Only new leases and renewals with terms in excess of 12 months are included. These results include properties owned and managed at March 31, 2019. Accordingly, Towne West Square is no longer included in the noncore properties. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average Base Rent PSF | ||||||||||||||||||||||||||||||||||||||||||||||||||
Base Minimum Rent PSF As of March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 Enclosed Retail Properties | $ | 28.98 | $ | 29.37 | ||||||||||||||||||||||||||||||||||||||||||||||
Open Air Properties | $ | 13.93 | $ | 13.87 | ||||||||||||||||||||||||||||||||||||||||||||||
Total Tier 1 and Open Air Properties | $ | 21.75 | $ | 21.85 |
SUPPLEMENTAL INFORMATION | 11
RELEASING SPREADS | ||||||||||||||||||||
Washington Prime Group Inc. | ||||||||||||||||||||
For the trailing 12 months ended March 31, 2019 | ||||||||||||||||||||
Square Footage of Signings | New Rate PSF | Prior Rate PSF | Re-leasing Spread | |||||||||||||||||
$ | % | |||||||||||||||||||
Open Air Properties: | ||||||||||||||||||||
New | 212,606 | $ | 19.33 | $ | 17.83 | $ | 1.50 | 8.4 | % | |||||||||||
Renewal | 367,940 | $ | 22.31 | $ | 22.24 | $ | 0.07 | 0.3 | % | |||||||||||
All Deals | 580,546 | $ | 21.22 | $ | 20.63 | $ | 0.59 | 2.9 | % | |||||||||||
Tier 1 Enclosed Retail Properties: | ||||||||||||||||||||
New | 152,424 | $ | 42.10 | $ | 44.33 | $ | (2.23 | ) | -5.0 | % | ||||||||||
Renewal | 825,678 | $ | 39.68 | $ | 43.07 | $ | (3.39 | ) | -7.9 | % | ||||||||||
All Deals | 978,102 | $ | 40.05 | $ | 43.27 | $ | (3.22 | ) | -7.4 | % | ||||||||||
Total Open Air and Tier 1 Properties: | ||||||||||||||||||||
New | 365,030 | $ | 28.84 | $ | 28.90 | $ | (0.06 | ) | -0.2 | % | ||||||||||
Renewal | 1,193,618 | $ | 34.32 | $ | 36.65 | $ | (2.33 | ) | -6.4 | % | ||||||||||
All Deals | 1,558,648 | $ | 33.04 | $ | 34.84 | $ | (1.80 | ) | -5.2 | % | ||||||||||
Note: The Company's Tier 2 and noncore properties are excluded from these metrics. |
SUPPLEMENTAL INFORMATION | 12
TOP 10 TENANTS | ||||||||||||
Washington Prime Group Inc. | ||||||||||||
As of March 31, 2019 | ||||||||||||
Non-Anchor Stores (Ranked by Percent of Total Minimum Rents) | ||||||||||||
National Tenant Name | Tenant DBA's in Portfolio | Number of Stores | GLA of Stores | Percent of Total GLA in Portfolio | Percent of Total Annualized Base Minimum Rent | |||||||
Signet Jewelers, Ltd. | Body by Pagoda, Gordon's Jewelers, Jared's, J.B. Robinson Jewelers, Kay Jewelers, Leroy's Jewelers, Mark's & Morgan, Piercing Pagoda, Plumb Gold, Rogers Jewelers, Silver and Gold Connection, Totally Pagoda, Zales Jewelers | 126 | 170,135 | 0.3% | 2.8% | |||||||
L Brands, Inc. | Bath & Body Works, Pink, Victoria's Secret, White Barn Candle | 112 | 589,815 | 1.0% | 2.8% | |||||||
Footlocker, Inc. | Champs Sports, Foot Action USA, Footlocker, Kids Footlocker, Lady Footlocker, World Footlocker | 81 | 349,062 | 0.6% | 1.8% | |||||||
Ascena Retail Group Inc. | Ann Taylor, Catherine's, Dress Barn, Justice, Lane Bryant, Loft, Maurice's | 116 | 584,588 | 1.0% | 1.6% | |||||||
American Eagle Outfitters, Inc. | aerie, American Eagle | 43 | 248,289 | 0.4% | 1.2% | |||||||
The Gap, Inc. | Athleta, Banana Republic, Banana Republic Outlet, Gap, Gap Kids, Gap Outlet, Intermix, Old Navy | 32 | 361,933 | 0.6% | 1.2% | |||||||
Luxottica Group | Apex, Lenscrafters, Oakley, Pearle Vision, Sunglass Hut, Watch Station | 75 | 194,486 | 0.3% | 1.2% | |||||||
Roark Capital Group | Arby's, Auntie Anne's, Buffalo Wild Wings, Cinnabon, Corner Bakery, Drybar, Fitness Connection, Hardee's, Jamba Juice, Jimmy John's, Massage Envy, McAlister's Deli, Miller's Ale House, Moe's Southwest Grill, Sonic, Waxing the City | 99 | 176,187 | 0.3% | 1.1% | |||||||
The Finish Line, Inc. | Finish Line, JD Sports | 35 | 203,896 | 0.4% | 1.1% | |||||||
Ulta Salon, Cosmetics & Fragrance, Inc. | Ulta Beauty | 23 | 244,451 | 0.4% | 1.0% | |||||||
Anchor Stores (Ranked by Total GLA) | ||||||||||||
National Tenant Name | Tenant DBA's in Portfolio | Number of Stores | GLA of Stores | Percent of Total GLA in Portfolio | Percent of Total Annualized Base Minimum Rent | Number of WPG Owned Stores | ||||||
JCPenney Company, Inc. | JCPenney | 37 | 4,741,205 | 8.2% | 1.1% | 19 | ||||||
Macy's, Inc. | Macy's | 26 | 4,579,870 | 7.9% | 0.3% | 5 | ||||||
Dillard's, Inc. | Dillard's | 22 | 3,108,424 | 5.4% | 0.1% | 1 | ||||||
Sears Holding Corporation (1) | Sears | 10 | 1,532,436 | 2.6% | 0.2% | 4 | ||||||
Target Corporation | Target, Super Target | 11 | 1,520,830 | 2.6% | 0.0% | 1 | ||||||
Kohl's Corporation | Kohl's | 13 | 1,186,302 | 2.0% | 0.9% | 10 | ||||||
Dick's Sporting Goods, Inc. | Dick's Sporting Goods, Field & Stream, Golf Galaxy | 17 | 1,020,114 | 1.8% | 2.0% | 15 | ||||||
Belk, Inc. | Belk, Belk for Her, Belk Home Store | 11 | 879,058 | 1.5% | 0.3% | 7 | ||||||
Best Buy Co. Inc. | Best Buy | 16 | 708,102 | 1.2% | 1.4% | 15 | ||||||
Wal-Mart Stores, Inc. | Wal-Mart | 4 | 618,061 | 1.1% | 0.0% | 0 | ||||||
(1) Of the 10 stores that remain open at March 31, 2019, one is owned by Seritage Properties. | ||||||||||||
Note: Schedule above includes properties owned and managed at March 31, 2019. Accordingly, Towne West Square is excluded. |
SUPPLEMENTAL INFORMATION | 13
LEASE EXPIRATIONS (1) | |||||||||||||||||||||||
Washington Prime Group Inc. | |||||||||||||||||||||||
As of March 31, 2019 | |||||||||||||||||||||||
Enclosed Retail Properties | |||||||||||||||||||||||
Number of Leases Expiring | Anchor Square Feet of GLA Expiring | Store Square Feet of GLA Expiring | Total Square Feet of GLA Expiring | Anchor Annualized Base Rents PSF Expiring | Store Annualized Base Rents PSF Expiring | % of Annualized Base Rents Represented by Expiring Leases | |||||||||||||||||
Year | |||||||||||||||||||||||
Month To Month Leases | 236 | — | 612,770 | 612,770 | $ | — | $ | 36.86 | 3.7 | % | |||||||||||||
2019 | 268 | 670,669 | 611,198 | 1,281,867 | $ | 1.54 | $ | 31.64 | 3.3 | % | |||||||||||||
2020 | 737 | 1,727,316 | 2,370,616 | 4,097,932 | $ | 5.01 | $ | 26.17 | 11.6 | % | |||||||||||||
2021 | 619 | 1,356,775 | 1,998,779 | 3,355,554 | $ | 6.40 | $ | 27.01 | 10.7 | % | |||||||||||||
2022 | 478 | 898,117 | 1,588,599 | 2,486,716 | $ | 6.74 | $ | 28.68 | 8.8 | % | |||||||||||||
2023 | 407 | 1,198,225 | 1,374,855 | 2,573,080 | $ | 8.98 | $ | 30.65 | 8.9 | % | |||||||||||||
2024 | 270 | 739,997 | 1,015,891 | 1,755,888 | $ | 6.45 | $ | 28.83 | 5.9 | % | |||||||||||||
2025 | 203 | 958,450 | 862,763 | 1,821,213 | $ | 7.18 | $ | 28.36 | 5.4 | % | |||||||||||||
2026 | 189 | 167,790 | 1,032,886 | 1,200,676 | $ | 7.20 | $ | 29.56 | 5.3 | % | |||||||||||||
2027 | 178 | 429,380 | 847,067 | 1,276,447 | $ | 7.98 | $ | 29.64 | 4.6 | % | |||||||||||||
2028 | 137 | 313,510 | 568,429 | 881,939 | $ | 12.10 | $ | 27.04 | 3.3 | % | |||||||||||||
2029 and Thereafter | 60 | 745,313 | 425,861 | 1,171,174 | $ | 9.77 | $ | 26.04 | 2.9 | % | |||||||||||||
Specialty Leasing Agreements w/ terms in excess of 11 months | 651 | — | 1,460,866 | 1,460,866 | $ | — | $ | 10.31 | 2.6 | % | |||||||||||||
Open Air Properties | |||||||||||||||||||||||
Number of Leases Expiring | Anchor Square Feet of GLA Expiring | Store Square Feet of GLA Expiring | Total Square Feet of GLA Expiring | Anchor Annualized Base Rents PSF Expiring | Store Annualized Base Rents PSF Expiring | % of Annualized Base Rents Represented by Expiring Leases | |||||||||||||||||
Year | |||||||||||||||||||||||
Month To Month Leases | 20 | — | 61,817 | 61,817 | $ | — | $ | 20.14 | 0.2 | % | |||||||||||||
2019 | 64 | 91,490 | 176,779 | 268,269 | $ | 2.95 | $ | 19.54 | 0.7 | % | |||||||||||||
2020 | 179 | 804,078 | 525,617 | 1,329,695 | $ | 11.97 | $ | 21.01 | 3.7 | % | |||||||||||||
2021 | 165 | 1,166,459 | 467,000 | 1,633,459 | $ | 9.03 | $ | 20.04 | 3.5 | % | |||||||||||||
2022 | 161 | 824,867 | 515,928 | 1,340,795 | $ | 10.79 | $ | 18.42 | 3.1 | % | |||||||||||||
2023 | 153 | 1,080,476 | 492,862 | 1,573,338 | $ | 10.63 | $ | 19.45 | 3.8 | % | |||||||||||||
2024 | 89 | 779,655 | 276,240 | 1,055,895 | $ | 9.50 | $ | 19.87 | 2.3 | % | |||||||||||||
2025 | 48 | 369,313 | 116,062 | 485,375 | $ | 12.87 | $ | 23.32 | 1.3 | % | |||||||||||||
2026 | 51 | 291,053 | 173,084 | 464,137 | $ | 12.95 | $ | 24.30 | 1.4 | % | |||||||||||||
2027 | 59 | 354,118 | 195,482 | 549,600 | $ | 8.98 | $ | 22.43 | 1.4 | % | |||||||||||||
2028 | 28 | 167,771 | 90,488 | 258,259 | $ | 15.89 | $ | 20.02 | 0.8 | % | |||||||||||||
2029 and Thereafter | 27 | 202,437 | 135,996 | 338,433 | $ | 9.46 | $ | 22.48 | 0.8 | % | |||||||||||||
Specialty Leasing Agreements w/ terms in excess of 11 months | 6 | — | 15,189 | 15,189 | $ | — | $ | 9.32 | 0.0 | % | |||||||||||||
(1) Does not consider the impact of renewal options that may be contained in leases, and this only considers landlord owned GLA. Schedule includes leases for properties owned and managed at March 31, 2019. Accordingly, leases at Towne West Square are excluded. |
SUPPLEMENTAL INFORMATION | 14
CAPITAL EXPENDITURES | |||||||||||||||||||||
Washington Prime Group Inc. | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Consolidated Three Months Ended March 31, 2019 | Unconsolidated Joint Venture Proportionate Share | Total Three Months Ended March 31, 2019 | Consolidated Three Months Ended March 31, 2018 | Unconsolidated Joint Venture Proportionate Share | Total Three Months Ended March 31, 2018 | ||||||||||||||||
New Developments | $ | — | $ | — | $ | — | $ | 302 | $ | — | $ | 302 | |||||||||
Redevelopments, Renovations, and Expansions | $ | 15,623 | $ | 4,109 | $ | 19,732 | $ | 11,839 | $ | 2,488 | $ | 14,327 | |||||||||
Internal Leasing Costs | $ | 337 | $ | 118 | $ | 455 | $ | 4,140 | $ | 258 | $ | 4,398 | |||||||||
Property Capital Expenditures: | |||||||||||||||||||||
Non-anchor stores tenant improvements and allowances | $ | 9,918 | $ | 1,036 | $ | 10,954 | $ | 5,642 | $ | 1,447 | $ | 7,089 | |||||||||
Operational capital expenditures | 6,958 | 755 | 7,713 | 4,833 | 272 | 5,105 | |||||||||||||||
Total Property Capital Expenditures | $ | 16,876 | $ | 1,791 | $ | 18,667 | $ | 10,475 | $ | 1,719 | $ | 12,194 | |||||||||
SUPPLEMENTAL INFORMATION | 15
REDEVELOPMENT PROJECTS | |||||||||||||||||||||
Washington Prime Group Inc. | |||||||||||||||||||||
As of March 31, 2019 | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Projects under construction or approved for construction with an estimated investment of $5 million or more | |||||||||||||||||||||
Property Name | City | St | Opportunity | Ownership % | Estimated Total Costs (1)(3) | Estimated Project Yield (1) (2) | WPG Costs Incurred to Date (3) | Estimated Completion (1) | |||||||||||||
Cottonwood Mall | Albuquerque | NM | Replace former Macy's store with new retailers to add Homelife Furniture and Mor for Less Furniture and other retail concepts including Hobby Lobby | 100% | $20,000 - $22,000 | 6% - 7% | $ | 16,119 | 2019 | ||||||||||||
Dayton Mall | Dayton | OH | Replace former hhgregg with Ross Dress for Less and add new The RoomPlace home furnishings store in newly configured in-line space | 100% | $8,000 - $10,000 | 10% - 12% | $ | 1,865 | 2019 | ||||||||||||
Fairfield Town Center | Houston | TX | Final phase of development to add 130,000 SF to add a theater, value fashion apparel as well as big box and small shop stores. | 100% | $26,000 - $30,000 | 7% - 8% | $ | 605 | 2020 | ||||||||||||
Grand Central Mall | Parkersburg | WV | Replaced Elder-Beerman with H&M, replaced Toys R Us with Big Lots, replaced hhgregg with Ulta and Five Below, planned replacement of former Sears with big box retail | 100% | $31,000 - $33,000 | 6% - 8% | $ | 8,396 | 2020 | ||||||||||||
Lincolnwood Town Center | Lincolnwood | IL | Replace former Carsons Pirie Scott with The RoomPlace | 100% | $16,000 - $18,000 | 7% - 8% | $ | 1,685 | 2019 | ||||||||||||
Mall at Fairfield Commons, The | Beavercreek | OH | Replace Sears store with The RoomPlace and Round 1 | 100% | $14,000 - $16,000 | 9% - 11% | $ | 706 | 2019 | ||||||||||||
Outlet Collection | Seattle | Seattle | WA | Replace former Sam's Club with FieldhouseUSA, a community based multi-purpose indoor sports facility specializing in leagues, events and tournaments. | 100% | $11,000 - $13,000 | 9% - 10% | $ | 29 | 2020 | ||||||||||||
Scottsdale Quarter (5) | Scottsdale | AZ | Ground-level retail in existing residential building; Retail and office tenants in mixed-use building; New residential and retail development on middle parcel. | 51% | $59,800 - $69,800 | (4 | ) | 7% - 8% | $ | 47,162 | (4 | ) | 2019 | ||||||||
(1) Estimated total costs, project yield, and completion are subject to adjustment as a result of changes (some of which are not under the direct control of the company) that are inherent in the development process. | |||||||||||||||||||||
(2) The project yield excludes any NOI benefit to the property that is indirectly related to the redevelopment other than near-term renewals, although each project does benefit other aspects of the property. The incremental yield does not consider prior rent paid by bankrupt tenants and does include the impact of co-tenancy cures as applicable. | |||||||||||||||||||||
(3) Project costs exclude the allocation of internal costs such as labor, interest, and taxes. | |||||||||||||||||||||
(4) Amounts shown represent 51% of the project spend. | |||||||||||||||||||||
(5) The new residential and retail units planned for development in the middle parcel have a completion date of 2019. |
SUPPLEMENTAL INFORMATION | 16
DEPARTMENT STORE REPOSITIONING STATUS | |||||||
Washington Prime Group Inc. | |||||||
Plans as of March 31, 2019 | |||||||
Count | Property | City | Former Department Store | Owner | Closing Date | Planned Replacement | Status |
Former Department Stores - Vacant as of March 31, 2019 | |||||||
1 | Cottonwood Mall | Albuquerque, NM | Sears | Sears | Aug-18 | Sears owns box | Evaluating Options |
2 | Grand Central Mall | Parkersburg, WV | Sears | Lease | Dec-18 | Big box retail | Lease out for Signature |
3 | Lincolnwood Town Center | Lincolnwood, IL | Carsons Pirie Scott | Lease | Aug-18 | RoomPlace/ Dining/ Retail | RoomPlace under construction |
4 | Lindale Mall | Cedar Rapids, IA | Younkers | Lease | Aug-18 | Retail concepts | Active Planning |
5 | Longview Mall | Longview, TX | Sears | Lease | Jan-19 | Big box retail | Pro-active termination, Letter of Intent (LOI) finalized |
6 | Mall at Fairfield Commons | Dayton, OH | Sears | Lease | Dec-18 | RoomPlace / Round1 | Pro-active termination, Replacement leases executed |
7 | Mall at Fairfield Commons | Dayton, OH | Elder-Beerman | Lease | Aug-18 | Retail concepts | Active Planning |
8 | Markland Mall | Kokomo, IN | Carsons Pirie Scott | Lease | Aug-18 | Retail concepts | Active Planning |
9 | Mesa Mall | Grand Junction, CO | Sears | Lease | Nov-18 | Dillard's | LOI executed |
10 | Mesa Mall | Grand Junction, CO | Herberger's | Lease | Aug-18 | Big box retail | LOI received |
11 | Morgantown Mall | Morgantown, WV | Belk | Lease | Mar-18 | Big box retail | Active Planning |
12 | Morgantown Mall | Morgantown, WV | Sears | Lease | Jan-19 | Evaluating options | Evaluating Options |
13 | Morgantown Mall | Morgantown, WV | Elder-Beerman | Lease | Aug-18 | Dunham's Sports | Lease executed |
14 | Northtown Mall | Blaine, MN | Herberger's | Lease | Aug-18 | Entertainment/Big box retail | Active Planning |
15 | Polaris Fashion Place | Columbus, OH | Sears | Lease | Mar-19 | Mixed use | Pro-active termination, Development Partner agreement executed |
16 | Port Charlotte Town Center | Port Charlotte, FL | Sears | Lease | Mar-19 | Big box retail | Active Planning |
17 | Southern Hills Mall | Sioux City, IA | Sears | Lease | Mar-19 | Retail concepts | Pro-active termination, LOI received |
18 | Southern Hills Mall | Sioux City, IA | Younkers | Lease | Aug-18 | Retail concepts | Active Planning |
19 | Southern Park Mall | Youngstown, OH | Sears | Lease | Jul-18 | Big box retail | Pro-active termination, Active Planning |
20 | Southgate Mall | Missoula, MT | Herberger's | Lease | Aug-18 | Dillard's | LOI executed |
21 | Southgate Mall | Missoula, MT | Herberger's Men | Lease | Aug-18 | Dining | Active Planning |
22 | WestShore Plaza | Tampa, FL | Sears | Lease | Mar-19 | Mixed use | Pro-active termination, Obtaining Entitlements |
Stores Occupied by Sears as of March 31, 2019 | |||||||
23 | Mall at Johnson City | Johnson City, TN | Sears | Lease | Big box retail | Active Planning | |
24 | Northwoods Mall | Peoria, IL | Sears | Sears | Sears owns box | Active Planning | |
25 | Orange Park Mall | Orange Park, FL | Sears | Sears | Sears owns box | Evaluating Options | |
26 | Pearlridge Center | Aiea, HI | Sears | Lease | Entertainment / Dining | Evaluating Options | |
27 | Town Center Aurora | Aurora, CO | Sears | Lease | Mixed use | Pro-active termination, Active Planning | |
28 | Weberstown Mall | Stocktown, CA | Sears | Ground lease | Mixed use | Active Planning | |
29 | Whitehall Mall | Whitehall, PA | Sears | Lease | Big box and small shop retail | Active Planning | |
Note that the Company plans to spend between $300M to $350M to redevelop these 29 department store locations over the next three to five years. |
SUPPLEMENTAL INFORMATION | 17
PROPERTY INFORMATION | |||||||||||||||||||||||
Washington Prime Group Inc. | |||||||||||||||||||||||
As of March 31, 2019 | |||||||||||||||||||||||
Debt Information | |||||||||||||||||||||||
Indebtedness | |||||||||||||||||||||||
Property Name | St | City (Major Metropolitan Area) | Financial Interest (1) | Total Center Square Feet | Total WPG Owned Square Feet | Total Tenant Owned Square Feet | Maturity Date (2) | Interest Rate | Type | Total | WPG Share | ||||||||||||
Enclosed Retail Properties | |||||||||||||||||||||||
Anderson Mall | SC | Anderson | 100% | 670,759 | 315,570 | 355,189 | 12/01/22 | 4.61% | Fixed | $17,745 | $17,745 | ||||||||||||
Arbor Hills | MI | Ann Arbor | 51% | 87,487 | 87,487 | 0 | 01/01/26 | 4.27% | Fixed | $24,545 | $12,518 | ||||||||||||
Arboretum, The | TX | Austin | 51% | 195,331 | 195,331 | 0 | 06/01/27 | 4.13% | Fixed | $59,400 | $30,294 | ||||||||||||
Ashland Town Center | KY | Ashland | 100% | 437,284 | 331,494 | 105,790 | 07/06/21 | 4.90% | Fixed | $36,605 | $36,605 | ||||||||||||
Bowie Town Center | MD | Bowie (Wash, D.C.) | 100% | 571,243 | 269,945 | 301,298 | |||||||||||||||||
Boynton Beach Mall | FL | Boynton Beach (Miami) | 100% | 1,031,678 | 590,324 | 441,354 | |||||||||||||||||
Brunswick Square | NJ | East Brunswick (New York) | 100% | 760,998 | 289,702 | 471,296 | 03/01/24 | 4.80% | Fixed | $70,795 | $70,795 | ||||||||||||
Charlottesville Fashion Square (4) | VA | Charlottesville | 100% | 577,813 | 354,109 | 223,704 | 04/01/24 | 4.54% | Fixed | $45,857 | $45,857 | ||||||||||||
Chautauqua Mall | NY | Lakewood | 100% | 432,931 | 427,955 | 4,976 | |||||||||||||||||
Chesapeake Square Theater | VA | Chesapeake (VA Beach) | 100% | 42,248 | 42,248 | 0 | |||||||||||||||||
Clay Terrace | IN | Carmel (Indianapolis) | 100% | 577,601 | 558,725 | 18,876 | |||||||||||||||||
Cottonwood Mall | NM | Albuquerque | 100% | 1,051,847 | 571,618 | 480,229 | 04/06/24 | 4.82% | Fixed | $96,716 | $96,716 | ||||||||||||
Dayton Mall | OH | Dayton | 100% | 1,443,065 | 771,284 | 671,781 | 09/01/22 | 4.57% | Fixed | $80,082 | $80,082 | ||||||||||||
Edison Mall | FL | Fort Myers | 100% | 1,038,946 | 556,653 | 482,293 | |||||||||||||||||
Grand Central Mall | WV | Parkersburg | 100% | 758,513 | 752,005 | 6,508 | 07/06/20 | 6.05% | Fixed | $39,382 | $39,382 | ||||||||||||
Great Lakes Mall | OH | Mentor (Cleveland) | 100% | 1,232,642 | 634,458 | 598,184 | |||||||||||||||||
Indian Mound Mall | OH | Newark | 100% | 556,746 | 384,085 | 172,661 | |||||||||||||||||
Irving Mall | TX | Irving (Dallas) | 100% | 1,051,773 | 488,228 | 563,545 | |||||||||||||||||
Jefferson Valley Mall | NY | Yorktown Heights (New York) | 100% | 582,937 | 417,245 | 165,692 | |||||||||||||||||
Lima Mall | OH | Lima | 100% | 743,872 | 544,050 | 199,822 | |||||||||||||||||
Lincolnwood Town Center | IL | Lincolnwood (Chicago) | 100% | 422,847 | 422,846 | 1 | 04/01/21 | 4.26% | Fixed | $48,396 | $48,396 | ||||||||||||
Lindale Mall | IA | Cedar Rapids | 100% | 713,708 | 477,016 | 236,692 | |||||||||||||||||
Longview Mall | TX | Longview | 100% | 645,871 | 347,074 | 298,797 | |||||||||||||||||
Malibu Lumber Yard | CA | Malibu | 51% | 31,514 | 31,514 | 0 | |||||||||||||||||
Mall at Fairfield Commons, The | OH | Beavercreek | 100% | 1,038,585 | 863,765 | 174,820 | |||||||||||||||||
Mall at Johnson City, The | TN | Johnson City | 51% | 567,892 | 567,892 | 0 | 05/06/20 | 6.76% | Fixed | $48,806 | $24,891 | ||||||||||||
Maplewood Mall | MN | St. Paul (Minneapolis) | 100% | 904,236 | 323,480 | 580,756 | |||||||||||||||||
Markland Mall | IN | Kokomo | 100% | 381,502 | 355,777 | 25,725 | |||||||||||||||||
Melbourne Square | FL | Melbourne | 100% | 723,304 | 419,394 | 303,910 | |||||||||||||||||
Mesa Mall | CO | Grand Junction | 100% | 802,628 | 430,607 | 372,021 | |||||||||||||||||
Morgantown Mall | WV | Morgantown | 100% | 555,350 | 555,350 | 0 | |||||||||||||||||
Muncie Mall (4) | IN | Muncie | 100% | 637,795 | 387,995 | 249,800 | 04/01/21 | 4.19% | Fixed | $33,747 | $33,747 | ||||||||||||
New Towne Mall | OH | New Philadelphia | 100% | 505,223 | 505,223 | 0 | |||||||||||||||||
Northtown Mall | MN | Blaine | 100% | 644,535 | 644,535 | 0 | |||||||||||||||||
Northwoods Mall | IL | Peoria | 100% | 649,408 | 337,279 | 312,129 | |||||||||||||||||
Oak Court Mall | TN | Memphis | 100% | 847,127 | 361,310 | 485,817 | 04/01/21 | 4.76% | Fixed | $36,811 | $36,811 | ||||||||||||
Oklahoma City Properties | OK | Oklahoma City | 51% | 313,953 | 311,707 | 2,246 | 06/01/27 | 3.90% | Fixed | $52,779 | $26,917 | ||||||||||||
01/01/23 | 4.99% | Variable | $12,906 | $6,582 | |||||||||||||||||||
Orange Park Mall | FL | Orange Park (Jacksonville) | 100% | 952,861 | 555,681 | 397,180 | |||||||||||||||||
Outlet Collection | Seattle, The | WA | Seattle | 100% | 923,331 | 923,331 | 0 | |||||||||||||||||
Paddock Mall | FL | Ocala | 100% | 548,147 | 317,590 | 230,557 | |||||||||||||||||
Pearlridge Center | HI | Aiea | 51% | 1,297,814 | 1,244,537 | 53,277 | 06/01/25 | 3.53% | Fixed | $225,000 | $114,750 | ||||||||||||
05/01/25 | 4.07% | Fixed | $43,200 | $22,032 | |||||||||||||||||||
Polaris Fashion Place | OH | Columbus | 51% | 1,572,168 | 934,653 | 637,515 | 03/01/25 | 3.90% | Fixed | $225,000 | $114,750 | ||||||||||||
03/01/25 | 4.46% | Fixed | $15,500 | $7,905 | |||||||||||||||||||
Port Charlotte Town Center (3) | FL | Port Charlotte | 100% | 777,246 | 493,037 | 284,209 | 11/01/20 | 5.30% | Fixed | $41,946 | $41,946 | ||||||||||||
Rolling Oaks Mall | TX | San Antonio | 100% | 883,079 | 286,771 | 596,308 | |||||||||||||||||
SUPPLEMENTAL INFORMATION | 18
PROPERTY INFORMATION | |||||||||||||||||||||||
Washington Prime Group Inc. | |||||||||||||||||||||||
As of March 31, 2019 | |||||||||||||||||||||||
Debt Information | |||||||||||||||||||||||
Indebtedness | |||||||||||||||||||||||
Property Name | St | City (Major Metropolitan Area) | Financial Interest (1) | Total Center Square Feet | Total WPG Owned Square Feet | Total Tenant Owned Square Feet | Maturity Date (2) | Interest Rate | Type | Total | WPG Share | ||||||||||||
Enclosed Retail Properties | |||||||||||||||||||||||
Scottsdale Quarter | AZ | Scottsdale | 51% | 724,896 | 724,896 | 0 | 06/01/25 | 3.53% | Fixed | $165,000 | $84,150 | ||||||||||||
04/01/27 | 4.36% | Fixed | $55,000 | $28,050 | |||||||||||||||||||
Seminole Towne Center (4) | FL | Sanford (Orlando) | 0% | 1,109,945 | 596,654 | 513,291 | 05/06/21 | 5.97% | Fixed | $53,326 | $— | ||||||||||||
Southern Hills Mall | IA | Sioux City | 100% | 794,010 | 672,670 | 121,340 | |||||||||||||||||
Southern Park Mall | OH | Youngstown | 100% | 1,194,618 | 1,007,054 | 187,564 | |||||||||||||||||
Southgate Mall | MT | Missoula | 100% | 578,811 | 436,278 | 142,533 | 09/27/23 | 4.48% | Fixed | $35,000 | $35,000 | ||||||||||||
Sunland Park Mall | TX | El Paso | 100% | 918,205 | 332,368 | 585,837 | |||||||||||||||||
Town Center at Aurora | CO | Aurora (Denver) | 100% | 1,081,087 | 494,589 | 586,498 | 04/01/21 | 4.19% | Fixed | $52,000 | $52,000 | ||||||||||||
Town Center Crossing & Plaza | KS | Leawood | 51% | 670,455 | 533,894 | 136,561 | 02/01/27 | 4.25% | Fixed | $33,443 | $17,056 | ||||||||||||
02/01/27 | 5.00% | Fixed | $67,586 | $34,469 | |||||||||||||||||||
Towne West Square (4)(5) | KS | Wichita | 100% | 06/01/21 | 5.61% | Fixed | $45,214 | $45,214 | |||||||||||||||
Waterford Lakes Town Center | FL | Orlando | 100% | 965,730 | 691,230 | 274,500 | |||||||||||||||||
Weberstown Mall | CA | Stockton | 100% | 859,071 | 264,251 | 594,820 | 06/08/21 | 4.79% | Variable | $65,000 | $65,000 | ||||||||||||
West Ridge Mall (4)(6) | KS | Topeka | 100% | 1,013,874 | 409,763 | 604,111 | 03/06/24 | 7.84% | Fixed | $39,841 | $39,841 | ||||||||||||
Westminster Mall | CA | Westminster (Los Angeles) | 100% | 1,216,695 | 444,003 | 772,692 | 04/01/24 | 4.65% | Fixed | $78,095 | $78,095 | ||||||||||||
WestShore Plaza | FL | Tampa | 100% | 1,075,486 | 847,024 | 228,462 | |||||||||||||||||
Enclosed Retail Properties Total | 43,388,721 | 28,135,554 | 15,253,167 | $1,944,723 | $1,387,596 | ||||||||||||||||||
Open Air Properties | |||||||||||||||||||||||
Bloomingdale Court | IL | Bloomingdale (Chicago) | 100% | 681,988 | 385,543 | 296,445 | |||||||||||||||||
Bowie Town Center Strip | MD | Bowie (Wash, D.C.) | 100% | 106,636 | 40,974 | 65,662 | |||||||||||||||||
Canyon View Marketplace | CO | Grand Junction | 100% | 199,815 | 43,053 | 156,762 | 11/06/23 | 5.47% | Fixed | $5,191 | $5,191 | ||||||||||||
Charles Towne Square | SC | Charleston | 100% | 71,794 | 71,794 | 0 | |||||||||||||||||
Chesapeake Center | VA | Chesapeake (Virginia Beach) | 100% | 279,581 | 128,972 | 150,609 | |||||||||||||||||
Concord Mills Marketplace | NC | Concord (Charlotte) | 100% | 240,720 | 226,907 | 13,813 | 11/01/23 | 4.82% | Fixed | $16,000 | $16,000 | ||||||||||||
Countryside Plaza | IL | Countryside (Chicago) | 100% | 403,455 | 203,994 | 199,461 | |||||||||||||||||
Dare Centre | NC | Kill Devil Hills | 100% | 168,613 | 109,094 | 59,519 | |||||||||||||||||
DeKalb Plaza | PA | King of Prussia (Philadelphia) | 100% | 101,915 | 44,095 | 57,820 | |||||||||||||||||
Empire East | SD | Sioux Falls | 100% | 301,438 | 167,616 | 133,822 | |||||||||||||||||
Fairfax Court | VA | Fairfax (Wash, D.C.) | 100% | 249,488 | 245,999 | 3,489 | |||||||||||||||||
Fairfield Town Center | TX | Houston | 100% | 364,469 | 185,469 | 179,000 | |||||||||||||||||
Forest Plaza | IL | Rockford | 100% | 433,816 | 413,519 | 20,297 | 10/10/19 | 7.50% | Fixed | $15,459 | $15,459 | ||||||||||||
Gaitway Plaza (3) | FL | Ocala | 96% | 197,435 | 196,635 | 800 | |||||||||||||||||
Gateway Centers | TX | Austin | 51% | 513,987 | 404,984 | 109,003 | 06/01/27 | 4.03% | Fixed | $112,500 | $57,375 | ||||||||||||
Greenwood Plus | IN | Greenwood (Indianapolis) | 100% | 152,123 | 146,091 | 6,032 | |||||||||||||||||
Henderson Square | PA | King of Prussia (Philadelphia) | 100% | 107,368 | 53,612 | 53,756 | |||||||||||||||||
Keystone Shoppes | IN | Indianapolis | 100% | 36,457 | 36,457 | 0 | |||||||||||||||||
Lake Plaza | IL | Waukegan (Chicago) | 100% | 215,590 | 124,961 | 90,629 | |||||||||||||||||
Lake View Plaza | IL | Orland Park (Chicago) | 100% | 364,525 | 309,116 | 55,409 | |||||||||||||||||
Lakeline Plaza | TX | Cedar Park (Austin) | 100% | 386,229 | 355,792 | 30,437 | 10/10/19 | 7.50% | Fixed | $14,482 | $14,482 | ||||||||||||
Lima Center | OH | Lima | 100% | 233,878 | 173,878 | 60,000 | |||||||||||||||||
Lincoln Crossing | IL | O'Fallon (St. Louis) | 100% | 303,526 | 98,061 | 205,465 | |||||||||||||||||
MacGregor Village | NC | Cary | 100% | 139,520 | 139,520 | 0 | |||||||||||||||||
Mall of Georgia Crossing | GA | Buford (Atlanta) | 100% | 440,774 | 317,639 | 123,135 | 10/06/22 | 4.28% | Fixed | $22,075 | $22,075 | ||||||||||||
Markland Plaza | IN | Kokomo | 100% | 90,527 | 80,977 | 9,550 | |||||||||||||||||
Martinsville Plaza | VA | Martinsville | 100% | 102,105 | 94,760 | 7,345 | |||||||||||||||||
Matteson Plaza | IL | Matteson (Chicago) | 100% | 273,836 | 182,436 | 91,400 | |||||||||||||||||
Muncie Towne Plaza | IN | Muncie | 100% | 171,621 | 171,621 | 0 | 10/10/19 | 7.50% | Fixed | $6,021 | $6,021 |
SUPPLEMENTAL INFORMATION | 19
PROPERTY INFORMATION | ||||||||||||||||||||||||
Washington Prime Group Inc. | ||||||||||||||||||||||||
As of March 31, 2019 | ||||||||||||||||||||||||
Debt Information | ||||||||||||||||||||||||
Indebtedness | ||||||||||||||||||||||||
Property Name | St | City (Major Metropolitan Area) | Financial Interest (1) | Total Center Square Feet | Total WPG Owned Square Feet | Total Tenant Owned Square Feet | Maturity Date (2) | Interest Rate | Type | Total | WPG Share | |||||||||||||
Open Air Properties | ||||||||||||||||||||||||
North Ridge Shopping Center | NC | Raleigh | 100% | 171,489 | 166,089 | 5,400 | 12/01/22 | 3.41% | Fixed | $11,697 | $11,697 | |||||||||||||
Northwood Plaza | IN | Fort Wayne | 100% | 204,956 | 76,727 | 128,229 | ||||||||||||||||||
Palms Crossing | TX | McAllen | 51% | 389,618 | 389,618 | 0 | 08/01/21 | 5.49% | Fixed | $33,924 | $17,301 | |||||||||||||
Plaza at Buckland Hills, The | CT | Manchester | 100% | 310,243 | 210,429 | 99,814 | ||||||||||||||||||
Richardson Square | TX | Richardson (Dallas) | 100% | 516,100 | 40,187 | 475,913 | ||||||||||||||||||
Rockaway Commons | NJ | Rockaway (New York) | 100% | 229,929 | 226,179 | 3,750 | ||||||||||||||||||
Rockaway Town Plaza | NJ | Rockaway (New York) | 100% | 306,436 | 73,154 | 233,282 | ||||||||||||||||||
Royal Eagle Plaza | FL | Coral Springs (Miami) | 100% | 186,283 | 175,330 | 10,953 | ||||||||||||||||||
Shops at Arbor Walk, The | TX | Austin | 51% | 309,064 | 280,315 | 28,749 | 08/01/21 | 5.49% | Fixed | $38,341 | $19,554 | |||||||||||||
Shops at North East Mall, The | TX | Hurst (Dallas) | 100% | 365,039 | 365,039 | 0 | ||||||||||||||||||
St. Charles Towne Plaza | MD | Waldorf (Wash, D.C.) | 100% | 391,325 | 329,483 | 61,842 | ||||||||||||||||||
Tippecanoe Plaza | IN | Lafayette | 100% | 90,522 | 85,811 | 4,711 | ||||||||||||||||||
University Center | IN | Mishawaka | 100% | 150,441 | 100,441 | 50,000 | ||||||||||||||||||
University Town Plaza | FL | Pensacola | 100% | 557,538 | 216,194 | 341,344 | ||||||||||||||||||
Village Park Plaza | IN | Carmel (Indianapolis) | 100% | 517,948 | 290,009 | 227,939 | ||||||||||||||||||
Washington Plaza | IN | Indianapolis | 100% | 50,107 | 50,107 | 0 | ||||||||||||||||||
West Ridge Plaza (6) | KS | Topeka | 100% | 253,086 | 98,593 | 154,493 | 03/06/24 | 7.84% | Fixed | $9,936 | $9,936 | |||||||||||||
West Town Corners (3) | FL | Altamonte Springs (Orlando) | 100% | 379,220 | 234,602 | 144,618 | ||||||||||||||||||
Westland Park Plaza (3) | FL | Orange Park (Jacksonville) | 100% | 163,259 | 163,259 | 0 | ||||||||||||||||||
White Oaks Plaza | IL | Springfield | 100% | 394,514 | 263,231 | 131,283 | 10/10/19 | 7.50% | Fixed | $12,041 | $12,041 | |||||||||||||
Whitehall Mall | PA | Whitehall | 100% | 603,475 | 588,601 | 14,874 | ||||||||||||||||||
Wolf Ranch | TX | Georgetown (Austin) | 100% | 632,246 | 420,060 | 212,186 | ||||||||||||||||||
Open Air Properties Total | 14,506,067 | 9,997,027 | 4,509,040 | $297,667 | $207,132 | |||||||||||||||||||
Total | 57,894,788 | 38,132,581 | 19,762,207 | $2,242,390 | $1,594,728 | (7) | ||||||||||||||||||
Footnotes: | ||||||||||||||||||||||||
(1) Direct and indirect interests in some joint venture properties are subject to preferences on distributions and/or capital allocation in favor of other partners. | ||||||||||||||||||||||||
(2) Assumes full exercise of available extension options. | ||||||||||||||||||||||||
(3) WPG receives approximately 96%-100% of the economic benefit of property due to performance or advance, although legal ownership is less than 100%. Legal ownership is as follows: Port Charlotte Town Center (80%); Gaitway Plaza (88.2%); West Town Corners (88.2%); and Westland Park Plaza (88.2%). | ||||||||||||||||||||||||
(4) Noncore property. | ||||||||||||||||||||||||
(5) While the Company still owns the property, the special servicer has transferred management to a third party during the third quarter of 2018 and the loan is in default. Accordingly, operating metrics are excluded for this property. | ||||||||||||||||||||||||
(6) The borrower is in default on the loan and is in discussions with the loan servicer. | ||||||||||||||||||||||||
(7) Our share of the joint venture debt excludes the $2.0 million indirect 12.5% ownership interest in another real estate project. | ||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION | 20
NON-GAAP PRO-RATA FINANCIAL INFORMATION | ||||||
The pro-rata financial information presented on pages 22 and 23 is not, and is not intended to be, a presentation in accordance with GAAP. The non-GAAP pro-rata financial information aggregates the Company’s proportionate economic ownership of each unconsolidated asset in the property portfolio that the Company does not wholly own. The amounts in the column labeled ‘‘WPG’s Share of Unconsolidated Entities’’ were derived on a per property or entity basis by applying to each line item the ownership percentage interest used to arrive at the Company’s share of the operations for the period consistent with the application of the equity method of accounting to each of the unconsolidated joint ventures. | ||||||
The Company does not control the unconsolidated joint ventures and the presentations of the assets and liabilities and revenues and expenses do not represent the Company’s legal claim to such items. | ||||||
The Company provides pro-rata financial information because it is believed to assist investors and analysts in estimating the economic interest in our unconsolidated joint ventures when read in conjunction with the Company’s reported results under GAAP. | ||||||
SUPPLEMENTAL INFORMATION | 21
NON-GAAP PRO-RATA FINANCIAL INFORMATION | |||||||
PROPORTIONATE SHARE OF UNCONSOLIDATED PROPERTIES - STATEMENTS OF OPERATIONS | |||||||
Washington Prime Group Inc. | |||||||
(Unaudited, dollars in thousands) | |||||||
Three Months Ended March 31, 2019 | |||||||
WPG's Share of Unconsolidated Entities | |||||||
Revenue: | |||||||
Minimum rent | $ | 21,100 | |||||
Overage rent | 426 | ||||||
Tenant reimbursements | 8,210 | ||||||
Changes in estimate of collectibility of rental income | (405 | ) | |||||
Other income | 640 | ||||||
Total revenues | 29,971 | ||||||
Expenses: | |||||||
Property operating | (6,096 | ) | |||||
Real estate taxes | (3,635 | ) | |||||
Advertising and promotion | (322 | ) | |||||
Total recoverable expenses | (10,053 | ) | |||||
Depreciation and amortization | (12,248 | ) | |||||
Ground rent | (1,557 | ) | |||||
Total operating expenses | (23,858 | ) | |||||
Interest expense, net | (6,084 | ) | |||||
Income and other taxes | (77 | ) | |||||
Loss from unconsolidated entities, net | $ | (48 | ) | ||||
Note: The amounts above represent the company's pro-rata share based upon the percentage of ownership interest per joint venture entity in each amount indicated, but it should be noted that the company does not control the unconsolidated entities. | |||||||
SUPPLEMENTAL INFORMATION | 22
NON-GAAP PRO-RATA FINANCIAL INFORMATION | |||||
PROPORTIONATE SHARE OF UNCONSOLIDATED PROPERTIES - BALANCE SHEET | |||||
Washington Prime Group Inc. | |||||
(Unaudited, dollars in thousands) | |||||
March 31, 2019 WPG's Share of Unconsolidated Entities | |||||
Assets: | |||||
Investment properties at cost | $ | 1,158,785 | |||
Construction in progress | 10,869 | ||||
1,169,654 | |||||
Less: accumulated depreciation | 194,665 | ||||
974,989 | |||||
Cash and cash equivalents | 15,687 | ||||
Tenant receivables and accrued revenue, net (see below) | 15,416 | ||||
Deferred costs and other assets (see below) | 157,388 | ||||
Total assets | $ | 1,163,480 | |||
Liabilities and members' equity: | |||||
Mortgage notes payable | $ | 623,269 | |||
Accounts payable, accrued expenses, intangibles, and deferred revenues (see below) | 147,681 | ||||
Total liabilities | 770,950 | ||||
Members' equity | 392,530 | ||||
Total liabilities and members' equity | $ | 1,163,480 | |||
Supplemental Balance Sheet Detail: | |||||
Tenant receivables and accrued revenue, net: | |||||
Straight-line receivable | $ | 9,558 | |||
Tenant receivable | 6,330 | ||||
Unbilled receivables and other | 1,452 | ||||
Allowance for doubtful accounts, net | (1,924 | ) | |||
Total | $ | 15,416 | |||
Deferred costs and other assets: | |||||
Deferred leasing, net | $ | 13,704 | |||
In place lease intangibles, net | 22,524 | ||||
Acquired above market lease intangibles, net | 22,448 | ||||
Right of use asset | 88,094 | ||||
Mortgage and other escrow deposits | 7,723 | ||||
Prepaids, notes receivable and other assets, net | 2,895 | ||||
Total | $ | 157,388 | |||
Accounts payable, accrued expenses, intangibles and deferred revenues: | |||||
Accounts payable and accrued expenses | $ | 26,401 | |||
Below market leases, net | 27,363 | ||||
Lease liability | 88,094 | ||||
Other | 5,823 | ||||
Total | $ | 147,681 | |||
Note: The amounts above represent the company's pro-rata share based upon the percentage of ownership interest per joint venture entity, but it should be noted that the company does not control the unconsolidated entities. |
SUPPLEMENTAL INFORMATION | 23
GLOSSARY OF TERMS | |||
- Average rent PSF | Average base minimum rent charge in effect for the reporting period for all tenants that qualify to be included in the occupancy as defined below. | ||
- EBITDAre | Net income (loss) attributable to the company before interest, depreciation and amortization, gains/losses on sale of operating properties, impairment charges, income taxes and adjustments related to pro-rata share of unconsolidated entities. The calculation is consistent with the definition published by The National Association of Real Estate Investment Trusts ("NAREIT") in a white paper issued in September 2017. | ||
- Funds from operations (FFO) | Funds From Operations ("FFO") is a supplemental non-GAAP measure utilized to evaluate the operating performance of real estate companies. NAREIT defines FFO as net income (loss) attributable to common shareholders computed in accordance with generally accepted accounting principles ("GAAP"), excluding (i) gains or losses from sales of operating real estate assets and (ii) extraordinary items, plus (iii) depreciation and amortization of operating properties and (iv) impairment of depreciable real estate and in substance real estate equity investments and (v) after adjustments for unconsolidated partnerships and joint ventures calculated to reflect funds from operations on the same basis. | ||
- Funds from operations, as adjusted (AFFO) | AFFO is calculated by adjusting FFO as defined above for non-recurring items such as merger costs, non-recurring debt fee amortization charges, gain on debt extinguishment and similar items. | ||
- Gross leasable area (GLA) | Measure of the total amount of leasable space in a property. | ||
- Net operating income (NOI) | Revenues from all rental property less operating and maintenance expenses, real estate taxes and rent expense including the company's pro-rata share of real estate joint ventures. Excludes non-recurring items such as termination income, sales from outparcels, material insurance proceeds, and other noncash items such as straight-line rent and fair value adjustments. | ||
- Occupancy | Occupancy is the percentage of total owned square footage ("GLA") which is leased as of the last day of the reporting period for tenants with terms of a year or more. For enclosed retail properties, all company owned space except for anchors, majors, office and outlots are included in the calculation. For open air properties, all owned GLA other than office are included in the calculation. | ||
- Occupancy cost | Percent of tenant's total occupancy cost (rent and reimbursement of CAM, tax and insurance) to tenant sales for stores of 10,000 sf or less. | ||
- Re-leasing spread | Re-leasing Spread is a ‘‘same space’’ measure that compares initial rent for new deals on individual spaces to expiring rents for prior tenants. For enclosed retail properties, majors, freestanding and office tenants are excluded. For open air properties, office tenants are excluded. The new rent is the weighted average of the initial cash Total Rent PSF for spaces leased during the trailing twelve month period, and includes new leases and existing tenant renewals and relocations (including expansions and downsizings). The prior rent is the weighted average of the final cash Total Rent PSF as of the month the tenant terminates or closes. Total Rent PSF includes Base Minimum Rent, common area maintenance ("CAM") and base percentage rent. It includes leasing activity on all spaces occupied by tenants as long as the opening and closing dates are within 24 months of one another. | ||
- Sales PSF | Trailing twelve-month sales for in-line stores of 10,000 SF or less. Excludes freestanding stores and specialty tenants. |
SUPPLEMENTAL INFORMATION | 24