Washington Prime Group Provides Update on Healthy Rent Collection Rate and Strong Leasing Volume
September 15 2020 - 7:00AM
Business Wire
Washington Prime Group Inc. (NYSE: WPG) today provided an update
on several operating metrics in conjunction with the posting of its
investor presentation for the BofA Securities Global Real Estate
Virtual Conference.
Significant Leasing Progress in the Face of COVID-19
Pandemic
- Leasing volume exhibited a 3.6% YOY increase during the first
eight months of 2020 totaling 2.9M SF of which ~44% of new leasing
volume was attributable to lifestyle tenancy;
- The aforementioned 2.9M SF follows annual leasing volume of
4.4M SF, 4.2M SF and 4.0M SF in 2019, 2018 and 2017, respectively,
totaling 15.5M SF; and
- Illustrating continued tenant demand of WPG town centers during
the height of the pandemic (March, April, May and June), 182 leases
were signed totaling 1.3M SF. This robust volume continued during
July and August as an additional 142 leases were signed. During the
six months since the onset of the COVID-19 pandemic, 324 signed
leases totaled 2.0M SF.
Current Status of Reopening WPG Town Centers
- All of the Company’s assets have reopened since closures in
response to COVID-19, with the exception of a single asset in
Hawaii, which is offering Retail-to-Go curbside pickup;
- Over 90% of the Company’s tenants are back open for
business;
- Upon reopening assets following temporary closures due to
COVID-19, reported year-over-year comparable sales increased 1.2%
for the month of June and declined 11.5% in July for a combined
60-day decrease of 5.6%; and
- Traffic trends have showed steady weekly sequential improvement
since reopening before, as expected, leveling off in early July
with traffic improving once again in August.
Healthy Rent Collection Rate
- The Company has collected 48% of contractual rents and charges,
and through deferral arrangements and payments currently due
expects to collect an additional 26% for a total of 74% for 2Q
20;
- The aforementioned ~48% collection rate is comprised of a ~43%
collection rate for enclosed assets and ~64% for Open Air assets;
and
- To date, the Company has collected over 80% of expected July
and August rents and associated charges and believes these trends
will continue to improve throughout the remainder of the year.
Washington Prime Group will participate in a roundtable
presentation at the BofA Securities Global Real Estate Virtual
Conference today, September 15, 2020 at 10:30 a.m. ET. A live audio
webcast of the presentation will be available on the Investor
Relations section of the Company’s website at
www.washingtonprime.com. An audio replay of the presentation will
be available approximately 24 hours after conclusion of the live
event through Tuesday, December 15, 2020. An accompanying investor
presentation has been posted to the Investor Relations section of
the Company’s website.
About Washington Prime Group
Washington Prime Group: National footprint with local flavor.
With about 100 town centers throughout the US, we’re as American as
apple pie. As a matter of fact, we are also as American as deep
dish pizza in Chicago, Hawaiian poke salad, vegan spring rolls in
Malibu, El Paso Tex-Mex, Maryland crab cakes, kimchi in Orange
County, Memphis barbeque and a Kansas City porterhouse. Our well
regarded infrastructure, from Hawaii to Connecticut, and pretty
much everywhere else in between, allows our tenant and sponsor
partners to benefit from the operating efficacy and economies of
scale at a large national real estate company, alongside local
management who possess comprehensive knowledge of the specific
locale within which they reside. Washington Prime Group® is a
registered trademark of the Company. Learn more at
www.washingtonprime.com or on Instagram or on LinkedIn.
Forward-Looking Statements
This news release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
which represent the current expectations and beliefs of management
of Washington Prime Group Inc. (“WPG”) concerning the Amendments,
the anticipated consequences and benefits of the Amendments, and
other future events and their potential effects on WPG, including,
but not limited to, statements relating to anticipated financial
and operating results, including its covenant compliance, the
Company’s plans, objectives, expectations and intentions, cost
savings and other statements, including words such as “anticipate,”
“believe,” “confident,” “plan,” “estimate,” “expect,” “intend,”
“will,” “should,” “may,” and other similar expressions. Such
statements are based upon the current beliefs and expectations of
WPG’s management, and involve known and unknown risks,
uncertainties, and other factors which may cause the actual
results, performance, or achievements of WPG to be materially
different from future results, performance or achievements
expressed or implied by such forward-looking statements. Such
factors include, without limitation: changes in asset quality and
credit risk; ability to sustain revenue and earnings growth;
changes in political, economic or market conditions generally and
the real estate and capital markets specifically; the impact of
increased competition; the availability of capital and financing;
tenant or joint venture partner(s) bankruptcies; the failure to
increase store occupancy and same-store operating income; risks
associated with the acquisition, disposition, (re)development,
expansion, leasing and management of properties; changes in market
rental rates; trends in the retail industry; relationships with
anchor tenants; risks relating to joint venture properties; costs
of common area maintenance; competitive market forces; the level
and volatility of interest rates; the rate of revenue increases as
compared to expense increases; the financial stability of tenants
within the retail industry; the restrictions in current financing
arrangements or the failure to comply with such arrangements; the
liquidity of real estate investments; the impact of changes to tax
legislation and WPG’s tax positions; losses associated with
closures, failures and stoppages associated with the spread and
proliferation of the coronavirus (COVID-19) pandemic; to qualify as
a real estate investment trust; the failure to refinance debt at
favorable terms and conditions; loss of key personnel; material
changes in the dividend rates on securities or the ability to pay
dividends on common shares or other securities; possible
restrictions on the ability to operate or dispose of any
partially-owned properties; the failure to achieve earnings/funds
from operations targets or estimates; the failure to achieve
projected returns or yields on (re)development and investment
properties (including joint ventures); expected gains on debt
extinguishment; changes in generally accepted accounting principles
or interpretations thereof; terrorist activities and international
hostilities; the unfavorable resolution of legal or regulatory
proceedings; the impact of future acquisitions and divestitures;
assets that may be subject to impairment charges; significant costs
related to environmental issues; changes in LIBOR reporting
practices or the method in which LIBOR is determined; and other
risks and uncertainties, including those detailed from time to time
in WPG’s statements and periodic reports filed with the Securities
and Exchange Commission, including those described under “Risk
Factors”. The forward-looking statements in this communication are
qualified by these risk factors. Each statement speaks only as of
the date of this press release and WPG undertakes no obligation to
update or revise any forward-looking statements to reflect new
information, subsequent events or circumstances. Actual results may
differ materially from current projections, expectations, and
plans, if any. Investors, potential investors and others should
give careful consideration to these risks and uncertainties.
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version on businesswire.com: https://www.businesswire.com/news/home/20200915005345/en/
Kimberly A. Green, VP, Investor Relations & Corporate
Communications, 614.887.5647 or Kim.Green@washingtonprime.com.
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