Washington Prime Group Inc. (NYSE: WPG) today
reported financial and operating results for the third quarter
ended September 30, 2019 that reflect continued progress of the
execution of the Company’s financial, operating and strategic
objectives.
|
|
Three Months EndedSeptember 30, |
|
Nine Months Ended September 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net (loss) income per diluted share |
|
$(0.02 |
) |
|
$0.00 |
|
|
$(0.14 |
) |
|
$0.13 |
|
FFO per diluted share |
|
$0.45 |
|
|
$0.37 |
|
|
$1.04 |
|
|
$1.13 |
|
FFO per diluted share, as adjusted |
|
$0.28 |
|
|
$0.37 |
|
|
$0.86 |
|
|
$1.13 |
|
A description of each non-GAAP financial measure
and the related reconciliation to the comparable GAAP financial
measure are provided in this press release.
Business Highlights
Robust and Diversified Leasing
Progress
- 2019 leasing continues to be strong exhibited by a 13%
year-over-year (YOY) increase totaling 3.2M SF, and the number of
lease transactions increased 9% YOY;
- Of the aforementioned 3.2M SF, 56% of new leasing volume was
attributable to lifestyle tenancy which includes food, beverage,
entertainment, home furnishings, fitness and professional services;
and
- The Company continues to incent its leasing and property
management professionals in order to further diversify tenancy as
illustrated by 143 leases qualifying under various incentive
programs during the first nine months of 2019.
Stable Operating Metrics
- Combined Tier One and Open Air occupancy decreased 110 basis
points to 92.9% during the third quarter 2019 compared to a year
ago, all of which was attributable to the bankruptcies of Charlotte
Russe, Gymboree, and Payless ShoeSource;
- Tier One sales PSF increased 4.6% to $413 during the trailing
12 months ended September 30, 2019;
- Tier One occupancy cost decreased 90 basis points to 11.2% as
of September 30, 2019; and
- Leasing spreads for new transactions increased 1.6% during the
trailing 12 months ended September 30, 2019 for Tier One and Open
Air assets.
Net Operating Income
Performance
- Third quarter 2019 Tier One comparable net operating income
(NOI) decreased 8.8% YOY while Open Air comparable NOI increased
2.6%, resulting in a combined decrease of 5.5% or $6.4M; and
- The aforementioned decrease is primarily due to a $4.3M
negative impact of cotenancy and rental income from 2018 anchor
bankruptcies (Bon-Ton Stores, Sears, Toys R Us), and $2.1M was
attributable to 2019 bankruptcies (Charlotte Russe, Gymboree, and
Payless ShoeSource).
Redevelopment and Department Store
Progress
- The Company has now addressed 17, or 74%, of the 23 department
store boxes to be repositioned within Tier One and Open Air
assets;
- As exhibited within the most recent third quarter 2019
supplemental, the Company continues to provide real time updates
relating to the 29 department stores within its Tier One and Open
Air properties identified for repositioning (excluding space owned
by third parties such as Seritage Growth Properties);
- The efforts of leasing and development include the following
projects, all of which are situated within Tier One assets:
- FieldhouseUSA will anchor the planned mixed use redevelopment
of the former Sears location at Polaris Fashion Place®, in
Columbus, Ohio;
- At Town Center at Aurora, located in Aurora, Colorado,
FieldhouseUSA will anchor the planned mixed use redevelopment of
the Sears location. Sears announced in August 2019 its plans to
close its Aurora location by the end of the year, and the Company
proactively gained control of the space for redevelopment
efforts;
- A national retailer has provided a letter of intent to replace
the former Carson Pirie Scott (Bon-Ton Stores) at Markland Mall, in
Kokomo, Indiana;
- The demolition of the former Sears department store is underway
at Southern Park Mall, in Boardman, Ohio, and is to be replaced by
DeBartolo Commons which includes an athletic and entertainment
green space and event venue. Adjacent to DeBartolo Commons,
Southern Park Mall will feature a new entertainment hub with plans
to include an indoor golf entertainment center, additional
entertainment uses, and new food and beverage offerings. The
renovation plans include a permanent DeBartolo-York family
installation in the common area;
- A national entertainment concept has executed a letter of
intent to replace the former Sears at Port Charlotte Town Center,
located in Port Charlotte, Florida;
- National retailers have finalized letters of intent to replace
the Sears at Longview Mall, in Longview, Texas;
- A national sporting goods retailer has provided a letter of
intent to replace a former Herberger’s (Bon-Ton Stores) at Mesa
Mall, located in Grand Junction, Colorado. In addition, a
to-be-constructed Dillard’s will replace the Sears space based on
terms of a letter of intent;
- At Southern Hills Mall, in Sioux City, Iowa, the Company has
executed a letter of intent with a national off price retailer and
has received a letter of intent from a national home furnishings
retailer to replace the former Sears location;
- Dillard’s opened a second location in June 2019 replacing the
former Herberger’s (Bon-Ton Stores) within Southgate Mall, in
Missoula, Montana;
- The Company announced HomeGoods, PetSmart, Ross Dress for Less
and T.J. Maxx will collectively replace the former Sears at Grand
Central Mall located in Parkersburg, West Virginia;
- The Company has executed a lease with Dunham’s Sports at
Morgantown Mall, in Morgantown, West Virginia, replacing space
previously occupied by Elder Beerman (Bon-Ton Stores). A national
discount retailer and an entertainment concept have provided
letters of intent to replace the former Belk department store. The
AMC Theatre located at Morgantown Mall will undergo a renovation in
late 2019, adding dine in food and beverage, and the Company is
actively planning to transform the former Sears location into an
outdoor greenspace;
- The Company is in the process of obtaining necessary
entitlements for WestShore Plaza, in Tampa, Florida, and
discussions are underway regarding a joint venture of this mixed
use redevelopment replacing the Sears space. In conjunction,
the Company also purchased an outparcel located in a high
visibility corner of the asset, currently occupied by office
tenancy to be included as part of the entitlement process;
- The RoomPlace opened in August 2019 and replaced a former
Carson Pirie Scott (Bon-Ton Stores) at Lincolnwood Town Center, in
Lincolnwood, Illinois. The beautifully-designed 84,000 SF space,
which is highlighted by a large atrium, occupies two floors and
combines three brands – The RoomPlace, The MattressPlace and RP
Outlet, marking The RoomPlace’s largest store to date; and
- The RoomPlace and Round1 Entertainment will replace the former
Sears at The Mall at Fairfield Commons, in Dayton, Ohio.
Financial Transactions
During the third quarter, the Company
proactively retired $29.1M of outstanding principal on the Senior
Notes due 2024 and recorded a $1.2M gain on the debt
extinguishment.
In addition, the Company has demonstrated
continued ability to access new strategic capital in 2019
including:
- The Company repaid the $47.6M mortgage loan previously
secured by four Open Air assets, which was scheduled to mature
on October 16, 2019 at a fixed rate of 7.5%.
Simultaneously, the Company closed on a new $117.0M loan
secured by the same four assets. The interest-only loan bears
interest at a fixed rate of 3.67%. The loan will mature
on October 1, 2029;
- Approximately $68.1M of net loan proceeds from the
aforementioned transaction, as well as proceeds from the previously
executed $180M nonrecourse mortgage loan secured by Waterford Lakes
Town Center, will provide the necessary liquidity to address the
upcoming $250M senior unsecured note maturing April 2020;
- The Company completed the sale and leaseback of four enclosed
assets (collectively, the “Properties”). Under the master ground
lease agreement, an affiliate of Kawa Capital
Partners (the “Lessor”), in conjunction with Perennial
Fee Investors, has acquired a fee interest in the land at the
Properties for a price of $98.9M. The Company received
approximately $42.4M in proceeds upon closing, net
of $55.0M in bridge financing provided by the Company and
closing costs. The bridge financing has a maximum five-year term,
which can be pre-paid without penalty, at an interest rate of
4.00%. The Company’s property-level affiliates (the “Lessees”)
entered into a new 99-year master ground lease for a leasehold
interest in the land at the Properties. The respective Lessees
retained the fee interest in the improvements and development
rights. The master ground lease includes fixed annual
payments to Lessor at an initial annualized rate of 7.4% and
contains annual rent escalators over the term. The agreement
includes an option for the Lessees to repurchase the fee interest
in the land at a fixed price in year 30 of the master ground lease.
If the Lessees do not exercise this option, then Lessor will retain
the fee interest in the land, and the fee interest in the
improvements and development rights will transfer to Lessor at the
end of the 99-year ground lease term. As previously announced, in
addition to Lessees continuing to own a fee interest in the
improvements and development rights through the term of the
aforementioned master ground lease, Lessees will continue to
manage, lease and develop the Properties, offering the same
exceptional guest experience. It will be business as usual to
guests and Property employees; and
- The Company signed during the third quarter of 2019 a
definitive agreement for the sale of 20 additional outparcels to
FCPT Acquisitions, LLC ("Four Corners") for approximately
$38M.
Louis Conforti, CEO and Director, Commentary
“Here’s the bullet point summary for the third quarter:
- Reaffirming both 2019 FFO, as adjusted, and dividend guidance
of $1.20 at the midpoint and $1.00 per diluted share,
respectively;
- Maintaining 2020 comparable NOI growth forecast of at least
2.0% for Tier One and Open Air;
- Leased 3.2M SF of space YTD;
- Lifestyle tenancy accounted for 56% of the 3.2M SF;
- Combined Enclosed and Open Air occupancy was 92.9%;
- Tier One occupancy cost decreased 90 basis points to
11.2%;
- Tier One Sales PSF increased 4.6% to $413;
- Leasing spreads for new Tier One and Open Air transactions
increased 1.6%;
- The Company hosted 776 events, activities and installations
during the quarter totaling 2,163 YTD;
- Comparable NOI growth for Tier One and Open Air was
(5.5%);
- Excluding cotenancy and lost rental income impact from
bankruptcies, comparable NOI was flat;
- Of the 23 vacant department store spaces, 17 or 74% has been
addressed;
- Proactively retired $29.1M of outstanding principal of Senior
Unsecured Notes due 2024;
- Raised $68.1M of net proceeds from refinancing of four Open Air
assets; and
- Sale leaseback of fee interest in land at four Tier One assets
resulted in $42.4M of net proceeds.
“The Merriam Webster Dictionary defines
alternative music as ‘produced by performers who are outside the
musical mainstream...typically regarded as more eclectic or
original than popular music…often distributed by independent record
labels’. There exists a distinct analogy between this musical genre
and Washington Prime Group. In fact, we have strived to
transform our assets from their previous 19791 aesthetic via
creativity and originality. Instead of walking around Numb2 akin to
a Zombie3, my colleagues have laced up their Pumped Up Kicks4,
deciding to Tighten Up5 and deal with the challenges facing our
sector. It hasn’t been easy and we have the Scar Tissue6 to prove
it.
“Starting with a department store update, we
have now resolved 17, or 74%, of the 23 vacant department stores
within the Company’s portfolio and expect to announce several
others within short order. While pundits were expecting a [more]
Bitter [than] Sweet Symphony7, we were able to provide solutions
ahead of schedule and attract a wide array of tenants which
markedly diversify current rosters. I’ll let you decide what’s
better for our assets…FieldhouseUSA, HomeGoods, PetSmart, Round1,
ALDI, The RoomPlace, T.J. Maxx…just to name a few…or a lackluster
Sears or Bon-Ton store. Unless you’re the Mayor of Simpletown8,
it’s a pretty easy decision. Combine those names with some
local and regional flavor as well as common area activations and
you have a party!
“Let’s now turn to leasing, which As You Oughta
Know9 is our most important and Epic10 task. Our leasing
professionals continue to perform with the fortitude of a Seven
Nation Army11 and as a result exhibited a robust 13% YOY increase
totaling 3.2M SF…the number of lease transactions for the same
period increased 9%. Of the aforementioned 3.2M SF, 56% of new
leasing volume was attributable to lifestyle tenancy which includes
food, beverage, entertainment, home furnishings, fitness and
professional services. I can’t resist…we continue to give our
guests plenty of reasons to Come Out and Play12 as well as eat,
drink and buy a loveseat or two. In addition, the Company continues
to incent its leasing and property management professionals in
order to further diversify tenancy as illustrated by 143 leases
qualifying under various incentive programs during the first nine
months of 2019.
“While Washington Prime Group will always
love our tenants with stores that Smell like Teen Spirit13 and we
certainly don’t want to start a Teenage Riot14, isn’t it about time
we catered to a more diverse demographic constituency?
Listen, Mark and I like to rock the latest crop top as much as
anybody’s teenage Daughter15 ; however, when we’re meeting with an
institutional investor, an exposed midriff is just plain
disrespectful. All of this talk about baring one’s midsection makes
me think about Forever 21. We currently have 16 locations within
our portfolio. As of now, it looks like we’ll only lose between two
to three, of which one was slated to be relocated, if even
feasible, as the result of redevelopment. Turning to Motherhood
Maternity…just thought I’d mention they account for only 20 basis
points of annualized rents, of which ~50% of our exposure is
situated within Polaris Fashion Place, Town Center Crossing and
Scottsdale Quarter.
“Continuing with a few other operating metrics,
Tier One sales PSF increased 4.6% to $413 during the trailing 12
months ended September 30, 2019 and occupancy cost decreased 90
basis points to 11.2%. Remember, occupancy cost is the litmus test
of tenant profitability and we rank among the best within our
sector. Also, leasing spreads for new Tier One and Open Air
transactions increased 1.6% during the trailing 12 months ended
September 30, 2019. While combined Tier One and Open Air
occupancy decreased 110 basis points to 92.9%, every single square
foot of it was attributable to the bankruptcies of Charlotte Russe,
Gymboree, and Payless ShoeSource. Now, I’d be uncomfortable as a
Blister in the Sun16 save for the fact we’re filling the space
with, plain and simple, better tenants with more interesting goods
and services. In fact, we estimate Tier One occupancy will
sequentially improve approximately 150 to 200 basis points by the
end of the fourth quarter 2019.
“It’s now time to discuss comparable net
operating income. Tier One decreased 8.8% and Open Air increased
2.6% which resulted in a combined decrease of 5.5% equating to
$6.4M during the third quarter 2019. Before you reach for
your Lithium17, it’s important to deconstruct this data point in
order to better understand its various components. Take it from The
Strokes, one of my favorite bands of all times, It’s [not] Hard to
Explain18. The entire decrease can best be described as follows: a
$4.3M negative impact as a result of cotenancy and rental income
loss from 2018 anchor bankruptcies (Bon-Ton Stores, Sears and Toys
‘R’ Us), and the remaining $2.1M was attributable to 2019
bankruptcies (Charlotte Russe, Gymboree and Payless
ShoeSource).
“So, backing out the aforementioned cotenancy
and rental income impact would result in flat comparable net
operating income growth. Think about it, if we didn’t have
visibility as it relates to resolving cotenancy and rental income
loss e.g. leasing space, we sure as heck wouldn’t forecast positive
2020 comparable net operating growth of at least 2.0% for Tier One
and Open Air. The bottom line is we are working our behinds off to
lease both inline and department store space and have satisfied the
vast majority of this detrimental impact. In other words, our
leasing volume proves Michael Stipes is sadly mistaken if he
believes It’s the End of the World19. Just remember, You Get
What You Give20 and my colleagues have given their all.
“Crappy companies are ubiquitous in every sector
and one of Beck’s most popular songs sums them up in a word.
According to Credit Risk Monitor, the ten largest corporate
bankruptcies in 2018 exhibited total liabilities of $54.5B.
Three of the ten were classified as retail (Sears, Claire’s Stores
and Bon-Ton Stores) and their total liabilities amounted to 28.4%
of the aggregate $54.5B. While I am absolutely not defending
these ne’er do wells or any of their crappy counterparts, there
exists a disproportionate amount of negativity with respect to our
sector as compared to other industries.
“I think I know the reason…my mother. When
Carson, Pirie & Scott (Bon-Ton Stores) shuttered their stores
last year, my mother was an absolute Basket Case20 lamenting their
demise as if a beloved relative had kicked the bucket (don’t even
think about asking her opinion about the post merger name change of
Marshall Field’s). In an admittedly feeble attempt to comfort
her, I said it’s not really a big deal because she was one of only
twelve remaining customers anyway, at which point she directed her
vitriol toward me as if I was responsible for their demise. Here’s
the moral of the story: Ask your mother if she has ever heard of
First Energy Solutions, Westmoreland Coal Company, Rex Energy
Corporation or any of the other names which accounted for the
remaining 71.6%. As physical retail is the quintessential
consumer facing industry, I guess I’ll just have to assume the role
of martyr and bear the wrath of shopping mothers everywhere.
“I’m going to end my commentary with an
interesting scenario analysis which provides yet another
illustration of the silliness of our current share price. Remember
last quarter when we provided a financial analysis which in effect
solved for the applicable capitalization rate of Tier One assets by
setting all other factors (remaining asset valuation) constant
given current share price? The result was at the then current share
price, Tier One assets, which comprise ~49% of 2019 budgeted NOI,
trade at a ~29.0% capitalization rate.
“This time we’re going to take a look at retail
or mixed use redevelopment potential and its incremental impact
upon net asset valuation. I’ll provide a summary as illustrated
below:
- Three representative assets were selected, WestShore Plaza,
Westminster Mall and Clay Terrace, all of which are scheduled to
undergo redevelopment in short order;
- Drawing from the aforementioned financial analysis of the
previous quarter, current valuation was ascribed to each asset by
applying actual net operating income and an implied capitalization
rate of 25.0% derived from a current share price of ~$4.00;
- Note these redevelopment projects include retail, office,
residential and lodging components; in every instance, obligation
is to deliver fully entitled land parcels to developers of these
products while retail remains the responsibility of WPG;
- Capital spend for aforementioned delivery of fully entitled
land parcels was included as a deduct; and
- A fair market valuation upon stabilization was calculated via
third party research.
“The result of what we considered to be highly conservative
assumption set resulted in $2.00 or more of value creation per
share...just for these three assets. Now extrapolate with varying
degrees and apply this methodology to Pearlridge Center, Southern
Park Mall, Grand Central Mall, Polaris Fashion Place, Southgate
Mall, The Mall at Johnson City...just to name a few.
“In closing, I’d like to thank my colleagues who have all become
My Hero[s]22. Their collective efforts make me feel like I’m
Mr. Brightside22.”
Footnotes 1-23: Check out the playlist at
https://open.spotify.com/playlist/4n4uo6AYQRMskNRvrJUaBv.
Third Quarter Financial
Results
Net loss attributable to common shareholders for
the third quarter of 2019 was $4.4 million, or ($0.02) per
diluted share, compared to income of $0.5 million, or $0.00 per
diluted share, a year ago. The YOY difference relates primarily to
lost rental income from retail bankruptcies and related cotenancy,
as well as higher interest expense. Results for the third quarter
of 2019 include a gain on the extinguishment of debt of $38.9
million, and a gain on disposition of interests in properties of
$9.8 million, which compares to $3.9 million of such gains during
the same quarter a year ago. Other items contributing to the YOY
change include a non-cash impairment loss of $28.9 million during
the third quarter of 2019.
In addition, general and administrative expenses
increased $3.1 million YOY, which was attributable to the impact of
the new lease accounting standard which now prohibits the Company
from capitalizing non-incremental internal leasing and legal
efforts.
NAREIT Funds from Operations (FFO) for the third
quarter of 2019 were $100.9 million, or $0.45 per diluted
share. This compares to $82.1 million, or $0.37 per diluted
share, during the same quarter a year ago. Results for the third
quarter of 2019 include a gain on the extinguishment of debt of
$38.9 million. When excluding that item, adjusted FFO (“AFFO”) for
the third quarter of 2019 was $62.0 million, or $0.28 per diluted
share, which compares to $0.37 per diluted share during the same
quarter a year ago. The YOY decrease in AFFO relates primarily to
lost rental income from retail bankruptcies and related cotenancy,
as well as higher interest expense.
Financial Activity
Dispositions
The Company announced in September 2017 the sale
of multiple tranches of outparcels to Four Corners with a combined
purchase price of approximately $70 million, of which the Company
closed on $27.8 million of restaurant outparcels in 2018. In
addition, the Company completed approximately $29.5 million of
outparcel sales during the first nine months of 2019. The Company
anticipates closing on most of the approximately $13.0 million of
remaining outparcel sales from the 2017 transaction in the fourth
quarter of 2019, subject to due diligence and closing conditions.
The net proceeds from the outparcel disposition activities were
generally used to fund ongoing redevelopment efforts and for
general corporate purposes. In addition, the Company signed during
the third quarter of 2019 a definitive agreement for the sale of 20
additional outparcels to Four Corners for a combined purchase price
of approximately $38 million. This pricing reflects a mid-six
percent capitalization rate on in-place net operating income. The
Company anticipates closing on a majority of the 20 additional
outparcels in 2020, subject to due diligence and closing
conditions.
Mortgage Loans
On September 16, 2019, the Company repaid the
$47.6 million mortgage loan previously secured by four Open Air
assets, which was scheduled to mature on October 16, 2019 at a
fixed rate of 7.5%. Simultaneously, the Company closed on a new
$117.0 million loan secured by the same four assets. The
interest-only loan bears interest at a fixed rate of 3.67%. The new
loan will mature on October 1, 2029. The Open Air assets are:
Forest Plaza located in Rockford, Illinois; Lakeline Plaza, located
in Cedar Park, Texas; Muncie Towne Plaza, located in Muncie,
Indiana; and White Oaks Plaza, located in Springfield,
Illinois.
On July 1, 2019, the $45.2 million mortgage loan
secured by Towne West Square, located in Wichita, Kansas, was
extinguished upon the property transition to the lender. The
Company recognized a gain on debt extinguishment, net of default
interest, of approximately $37.7 million related to the transition
during the third quarter of 2019.
Senior Notes
During the third quarter of 2019, the Company
retired at a discount $29.1 million outstanding principal on the
Senior Notes due 2024. The Company recognized a gain of
approximately $1.2 million, net of $0.6M of bond discount and debt
issuance costs, which is recorded in gain on extinguishment of
debt.
2019 Guidance
The Company updates guidance for fiscal 2019 net
loss attributable to common shareholders in the range of $(0.18) to
$(0.09) per diluted share, primarily to incorporate non-cash items
which occurred during the third quarter of 2019. The Company
reaffirms guidance for fiscal 2019 FFO, as adjusted, in a range of
$1.16 to $1.24 per diluted share.
The following table provides the reconciliation for estimated
net loss attributable to common shareholders per diluted share to
estimated FFO per diluted share, as adjusted, for the year ending
December 31, 2019:
|
|
LowEnd |
|
HighEnd |
Estimated net loss attributable to common shareholders per diluted
share |
|
$(0.18 |
) |
|
$(0.09 |
) |
|
|
|
|
|
Real estate depreciation and amortization, including joint venture
impact |
|
1.40 |
|
|
1.39 |
|
Impairment loss, including gain on disposition of interests in
properties, net |
|
0.11 |
|
|
0.11 |
|
Estimated FFO per diluted share |
|
$1.33 |
|
|
$1.41 |
|
Gain on debt extinguishment, net |
|
(0.17 |
) |
|
(0.17 |
) |
Estimated FFO per diluted share, as adjusted |
|
$1.16 |
|
|
$1.24 |
|
|
|
|
|
|
The Company guidance now assumes that fiscal
2019 comparable NOI will decline 3.0% to 4.0% for Tier One and Open
Air properties from the prior year. The Company also expects higher
gains from outparcel sales and lower overhead costs from previous
guidance while other key assumptions for 2019 remain unchanged. A
summary of all key guidance assumptions can be found in the
Supplemental Information report available on the investor relations
section of the Company’s website.
The following table provides a reconciliation of
estimated net loss attributable to common shareholders from GAAP
financial statements to the Company’s NOI estimates for the
year:
(Dollars in thousands) |
|
|
|
|
|
|
LowEnd |
|
HighEnd |
Estimated net loss attributable to common shareholders |
|
$(26,000 |
) |
|
$(7,000 |
) |
Depreciation and amortization |
|
275,000 |
|
|
270,000 |
|
General and administrative and corporate overhead |
|
70,000 |
|
|
68,000 |
|
Interest expense |
|
155,000 |
|
|
153,000 |
|
Gains from sales of outparcels, debt extinguishment net of
impairment loss |
|
(36,000 |
) |
|
(38,000 |
) |
Pro rata share of unconsolidated joint venture in comp NOI |
|
69,000 |
|
|
71,000 |
|
Non-comparable properties and other (1) |
|
(20,000 |
) |
|
(27,500 |
) |
Tier Two and Noncore properties comp NOI |
|
(37,000 |
) |
|
(35,000 |
) |
Estimated comparable NOI – Tier One and Open Air |
|
$450,000 |
|
|
$454,500 |
|
Estimated comparable NOI year-over-year growth (2) |
|
(4.0 |
%) |
|
(3.0 |
%) |
- Includes fee income, termination and outparcel sales
projections, straight line rents, fair market adjustments and NOI
for non-comparable properties.
- Reported 2018 comparable NOI adjusted for actual and projected
property dispositions was $468.8 million.
For the fourth quarter of 2019, the Company
estimates net (loss) income attributable to common shareholders to
be in the range of $(0.03) to $0.02 per diluted share and FFO to be
in the range of $0.31 to $0.35 per diluted share.
A reconciliation of the range of estimated net loss per diluted
share to estimated FFO per diluted share for the fourth
quarter of 2019 follows:
|
|
LowEnd |
|
HighEnd |
Estimated net (loss) income attributable to common
shareholders per diluted share |
|
$(0.03 |
) |
|
$0.02 |
|
Real estate depreciation and amortization, including joint venture
impact |
|
0.34 |
|
|
0.33 |
|
Estimated FFO per diluted share |
|
$0.31 |
|
|
$0.35 |
|
|
|
|
|
|
|
|
Earnings Call and Webcast on October
24
The Company will host its quarterly earnings
conference call and an audio webcast on Thursday, October 24, 2019
at 11:00 a.m. Eastern Time.
The live webcast will be available in
listen-only mode from the investor relations section of the
Company’s website at www.washingtonprime.com. Listeners can also
access the call by dialing 844.646.4463 (or +1.615.247.0256 for
international callers), and the participant passcode is 2330779.
A replay of the call will be available on the
Company’s website, or by calling 855.859.2056
(or +1.404.537.3406 for international callers), passcode is
2330779, beginning on Thursday, October 24, 2019, at
approximately 1:00 p.m. Eastern Time through midnight
on Thursday, November 7, 2019.
Supplemental Information
For additional details on the Company’s results
and properties, please refer to the Supplemental Information report
on the investor relations section of the Company’s website.
This release as well as the supplemental information have been
furnished to the Securities and Exchange Commission (SEC) in a Form
8-K.
About Washington Prime
Group
Washington Prime Group Inc. is a retail REIT and
a recognized leader in the ownership, management, acquisition and
development of retail properties. The Company combines a national
real estate portfolio with its expertise across the entire shopping
center sector to increase cash flow through rigorous management of
assets and provide new opportunities to retailers looking for
growth throughout the U.S. Washington Prime Group® and Polaris
Fashion Place® are registered trademarks of the Company. Learn more
at www.washingtonprime.com.
Contacts
Lisa A. Indest, CAO & EVP, Finance, 614.887.5844 or
lisa.indest@washingtonprime.com
Kimberly A. Green, VP, Investor Relations & Corporate
Communications, 614.887.5647 or kim.green@washingtonprime.com
Non-GAAP Financial Measures
This press release includes FFO and NOI,
including same property NOI growth, which are financial performance
measures not defined by generally accepted accounting principles in
the United States (GAAP). Reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP measures
are included in this press release. FFO and comparable NOI growth
are financial performance measures widely used by securities
analysts, investors and other interested parties in the evaluation
of REITs. The Company believes that FFO provides investors with
additional information regarding operating performance and a basis
to compare the Company’s performance with that of other REITs.
The Company uses FFO in addition to net income
to report operating results. We determine FFO based on the
definition set forth by the National Association of Real Estate
Investment Trusts (NAREIT) as net income computed in accordance
with GAAP, excluding real estate related depreciation and
amortization, excluding gains and losses from extraordinary items
and cumulative effects of accounting changes, excluding gains and
losses from the sales or disposals of previously depreciated retail
operating properties, excluding impairment charges of depreciable
real estate, plus the allocable portion of FFO of unconsolidated
entities accounted for under the equity method of accounting based
upon economic ownership interest.
NOI is used by industry analysts, investors and
Company management to measure operating performance of the
Company’s properties. NOI represents total property revenues less
property operating and maintenance expenses. Accordingly, NOI
excludes certain expenses included in the determination of net
income such as corporate general and administrative expense and
other indirect operating expenses, interest expense, impairment
charges and depreciation and amortization expense. These items are
excluded from NOI in order to provide results that are more closely
related to a property’s results of operations. In addition, the
Company’s computation of same property NOI excludes termination
income and income from outparcel sales. The Company also adjusts
for other miscellaneous items in order to enhance the comparability
of results from one period to another. Certain items, such as
interest expense, while included in FFO and net income, do not
affect the operating performance of a real estate asset and are
often incurred at the corporate level as opposed to the property
level. As a result, management uses only those income and expense
items that are incurred at the property level to evaluate a
property’s performance. Real estate asset related depreciation and
amortization, as well as impairment charges, are excluded from NOI
for the same reasons that they are excluded from FFO pursuant to
NAREIT’s definition.
Non-GAAP financial measures have limitations as
they do not include all items of income and expense that affect
operations, and accordingly, should always be considered as
supplemental to financial results presented in accordance with
GAAP. Investors should understand that the Company’s computation of
these non-GAAP measures might not be comparable to similar measures
reported by other REITs and that these non-GAAP measures do not
represent cash flow from operations as defined by GAAP, should not
be considered as alternatives to net income determined in
accordance with GAAP as a measure of operating performance and are
not alternatives to cash flows as a measure of liquidity. Investors
are cautioned that items excluded from these measures are
significant components in understanding and addressing financial
performance. Reconciliations of these measures are included in the
press release.
Regulation Fair Disclosure
(FD)
The Company routinely posts important
information online on the investor relations section of the
corporate website. The Company uses this website, press releases,
SEC filings, conference calls, presentations and webcasts to
disclose material, non-public information in accordance with
Regulation FD. The Company encourages members of the investment
community to monitor these distribution channels for material
disclosures. Any information accessed through the Company’s website
is not incorporated by reference into, and is not a part of, this
document.
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 proposed transactions, the anticipated consequences
and benefits of the transactions and the targeted close date for
the transactions, and other future events and their potential
effects on WPG, including, but not limited to, statements relating
to anticipated financial and operating results, 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; failure 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.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS |
Washington
Prime Group Inc. |
(Unaudited,
dollars in thousands, except per share data) |
|
|
|
|
|
|
|
Three Months
EndedSeptember 30, |
|
Nine Months
EndedSeptember 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Rental income |
|
$ |
154,611 |
|
|
$ |
174,449 |
|
|
$ |
474,114 |
|
|
$ |
517,309 |
|
Other
income |
|
6,593 |
|
|
4,970 |
|
|
17,347 |
|
|
17,221 |
|
Total
revenues |
|
161,204 |
|
|
179,419 |
|
|
491,461 |
|
|
534,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Property
operating |
|
(39,007 |
) |
|
(37,885 |
) |
|
(114,868 |
) |
|
(110,196 |
) |
Real estate
taxes |
|
(19,014 |
) |
|
(22,145 |
) |
|
(61,006 |
) |
|
(65,280 |
) |
Advertising
and promotion |
|
(2,323 |
) |
|
(1,875 |
) |
|
(6,241 |
) |
|
(5,886 |
) |
Total
recoverable expenses |
|
(60,344 |
) |
|
(61,905 |
) |
|
(182,115 |
) |
|
(181,362 |
) |
Depreciation
and amortization |
|
(70,948 |
) |
|
(71,010 |
) |
|
(209,142 |
) |
|
(196,100 |
) |
General and
administrative (1) |
|
(12,210 |
) |
|
(9,124 |
) |
|
(39,459 |
) |
|
(29,969 |
) |
Ground
rent |
|
(215 |
) |
|
(197 |
) |
|
(613 |
) |
|
(592 |
) |
Impairment
loss |
|
(28,936 |
) |
|
- |
|
|
(28,936 |
) |
|
- |
|
Total
operating expenses |
|
(172,653 |
) |
|
(142,236 |
) |
|
(460,265 |
) |
|
(408,023 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
(38,833 |
) |
|
(36,582 |
) |
|
(114,806 |
) |
|
(105,627 |
) |
Gain on
disposition of interests in properties, net |
|
9,825 |
|
|
3,864 |
|
|
26,056 |
|
|
20,108 |
|
Gain on
extinguishment of debt, net |
|
38,913 |
|
|
- |
|
|
38,913 |
|
|
- |
|
Income and
other taxes |
|
120 |
|
|
227 |
|
|
(465 |
) |
|
(859 |
) |
Loss from
unconsolidated entities, net |
|
(241 |
) |
|
(577 |
) |
|
(2,002 |
) |
|
(310 |
) |
Net (loss)
income |
|
(1,665 |
) |
|
4,115 |
|
|
(21,108 |
) |
|
39,819 |
|
Net (loss)
income attributable to noncontrolling interests |
|
(752 |
) |
|
144 |
|
|
(4,774 |
) |
|
4,730 |
|
Net (loss)
income attributable to the Company |
|
(913 |
) |
|
3,971 |
|
|
(16,334 |
) |
|
35,089 |
|
Less:
Preferred share dividends |
|
(3,508 |
) |
|
(3,508 |
) |
|
(10,524 |
) |
|
(10,524 |
) |
Net
(loss) income attributable to common shareholders |
|
$ |
(4,421 |
) |
|
$ |
463 |
|
|
$ |
(26,858 |
) |
|
$ |
24,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
earnings per common share, basic and diluted |
|
$ |
(0.02 |
) |
|
$ |
0.00 |
|
|
$ |
(0.14 |
) |
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) An increase of
$3.1 million and $10.3 million for the three and nine months ended
September 30, 2019 relates to the new lease accounting standard
effective January 1, 2019, which no longer permits deferral of
certain internal legal and leasing costs. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
Washington Prime Group Inc. |
(Unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
September
30, |
|
December
31, |
|
|
2019 |
|
2018 |
Assets: |
|
|
|
|
Investment properties at cost |
|
$ |
5,870,026 |
|
|
$ |
5,879,637 |
|
Construction
in progress |
|
|
70,944 |
|
|
|
35,068 |
|
|
|
|
5,940,970 |
|
|
|
5,914,705 |
|
Less:
accumulated depreciation |
|
|
2,408,980 |
|
|
|
2,283,764 |
|
|
|
|
3,531,990 |
|
|
|
3,630,941 |
|
|
|
|
|
|
Cash and
cash equivalents |
|
|
36,003 |
|
|
|
42,542 |
|
Tenant
receivables and accrued revenue, net |
|
|
76,708 |
|
|
|
85,463 |
|
Investment
in and advances to unconsolidated entities, at equity |
|
|
418,105 |
|
|
|
433,207 |
|
Deferred
costs and other assets |
|
|
165,352 |
|
|
|
169,135 |
|
Total assets |
|
$ |
4,228,158 |
|
|
$ |
4,361,288 |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
Mortgage
notes payable |
|
$ |
1,170,129 |
|
|
$ |
983,269 |
|
Notes
payable |
|
|
956,716 |
|
|
|
982,697 |
|
Unsecured
term loans |
|
|
686,359 |
|
|
|
685,509 |
|
Revolving
credit facility |
|
|
213,859 |
|
|
|
286,002 |
|
Accounts
payable, accrued expenses, intangibles, and deferred revenues |
|
|
241,569 |
|
|
|
253,862 |
|
Distributions payable |
|
|
3,117 |
|
|
|
2,992 |
|
Cash
distributions and losses in unconsolidated entities, at equity |
|
|
15,421 |
|
|
|
15,421 |
|
Total liabilities |
|
|
3,287,170 |
|
|
|
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 |
|
|
1,253,152 |
|
|
|
1,247,639 |
|
Accumulated
deficit |
|
|
(625,304 |
) |
|
|
(456,924 |
) |
Accumulated
other comprehensive (loss) income |
|
|
(7,848 |
) |
|
|
6,400 |
|
Total
stockholders' equity |
|
|
822,595 |
|
|
|
999,710 |
|
Noncontrolling interests |
|
|
115,128 |
|
|
|
148,561 |
|
Total equity |
|
|
937,723 |
|
|
|
1,148,271 |
|
Total liabilities, redeemable noncontrolling interests and
equity |
|
$ |
4,228,158 |
|
|
$ |
4,361,288 |
|
|
|
|
|
|
|
|
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
EndedSeptember 30, |
|
Nine Months
EndedSeptember 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Funds from Operations ("FFO"): |
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(1,665 |
) |
|
$ |
4,115 |
|
|
$ |
(21,108 |
) |
|
$ |
39,819 |
|
Less:
Preferred dividends and distributions on preferred operating
partnership units |
|
|
(3,568 |
) |
|
|
(3,568 |
) |
|
|
(10,704 |
) |
|
|
(10,704 |
) |
Real estate
depreciation and amortization, including joint venture impact |
|
|
81,155 |
|
|
|
81,525 |
|
|
|
239,060 |
|
|
|
225,079 |
|
Impairment
loss, including (gain) on disposition of interests in properties,
net |
|
|
24,992 |
|
|
|
- |
|
|
|
24,992 |
|
|
|
(1,755 |
) |
FFO |
|
$ |
100,914 |
|
|
$ |
82,072 |
|
|
$ |
232,240 |
|
|
$ |
252,439 |
|
|
|
|
|
|
|
|
|
|
Adjusted Funds from Operations: |
|
|
|
|
|
|
|
|
FFO |
|
$ |
100,914 |
|
|
$ |
82,072 |
|
|
$ |
232,240 |
|
|
$ |
252,439 |
|
Gain on
extinguishment of debt, net |
|
|
(38,913 |
) |
|
|
- |
|
|
|
(38,913 |
) |
|
|
- |
|
Adjusted
FFO |
|
$ |
62,001 |
|
|
$ |
82,072 |
|
|
$ |
193,327 |
|
|
$ |
252,439 |
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - diluted |
|
|
224,176 |
|
|
|
223,993 |
|
|
|
223,676 |
|
|
|
223,796 |
|
|
|
|
|
|
|
|
|
|
FFO per
diluted share |
|
$ |
0.45 |
|
|
$ |
0.37 |
|
|
$ |
1.04 |
|
|
$ |
1.13 |
|
Total
adjustments |
|
$ |
(0.17 |
) |
|
$ |
- |
|
|
$ |
(0.17 |
) |
|
$ |
- |
|
Adjusted FFO
per diluted share |
|
$ |
0.28 |
|
|
$ |
0.37 |
|
|
$ |
0.86 |
|
|
$ |
1.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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
EndedSeptember 30, |
|
Nine Months
EndedSeptember 30, |
|
|
2019 |
|
2018 |
|
Variance $ |
|
2019 |
|
2018 |
|
Variance $ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Comp NOI to Net (Loss)
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income |
|
$ |
(1,665 |
) |
|
$ |
4,115 |
|
|
$ |
(5,780 |
) |
|
$ |
(21,108 |
) |
|
$ |
39,819 |
|
|
$ |
(60,927 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
unconsolidated entities |
|
|
241 |
|
|
|
577 |
|
|
|
(336 |
) |
|
|
2,002 |
|
|
|
310 |
|
|
|
1,692 |
|
Income and
other taxes |
|
|
(120 |
) |
|
|
(227 |
) |
|
|
107 |
|
|
|
465 |
|
|
|
859 |
|
|
|
(394 |
) |
Gain on
disposition of interests in properties, net |
|
|
(9,825 |
) |
|
|
(3,864 |
) |
|
|
(5,961 |
) |
|
|
(26,056 |
) |
|
|
(20,108 |
) |
|
|
(5,948 |
) |
Gain on
extinguishment of debt, net |
|
|
(38,913 |
) |
|
|
- |
|
|
|
(38,913 |
) |
|
|
(38,913 |
) |
|
|
- |
|
|
|
(38,913 |
) |
Interest
expense, net |
|
|
38,833 |
|
|
|
36,582 |
|
|
|
2,251 |
|
|
|
114,806 |
|
|
|
105,627 |
|
|
|
9,179 |
|
Operating
(Loss) Income |
|
|
(11,449 |
) |
|
|
37,183 |
|
|
|
(48,632 |
) |
|
|
31,196 |
|
|
|
126,507 |
|
|
|
(95,311 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization |
|
|
70,948 |
|
|
|
71,010 |
|
|
|
(62 |
) |
|
|
209,142 |
|
|
|
196,100 |
|
|
|
13,042 |
|
Impairment
loss |
|
|
28,936 |
|
|
|
- |
|
|
|
28,936 |
|
|
|
28,936 |
|
|
|
- |
|
|
|
28,936 |
|
General and
administrative |
|
|
12,210 |
|
|
|
9,124 |
|
|
|
3,086 |
|
|
|
39,459 |
|
|
|
29,969 |
|
|
|
9,490 |
|
Fee
income |
|
|
(3,242 |
) |
|
|
(2,562 |
) |
|
|
(680 |
) |
|
|
(8,669 |
) |
|
|
(7,044 |
) |
|
|
(1,625 |
) |
Management
fee allocation |
|
|
39 |
|
|
|
21 |
|
|
|
18 |
|
|
|
124 |
|
|
|
5 |
|
|
|
119 |
|
Pro-rata
share of unconsolidated joint ventures in comp NOI |
|
|
17,619 |
|
|
|
18,434 |
|
|
|
(815 |
) |
|
|
52,437 |
|
|
|
53,859 |
|
|
|
(1,422 |
) |
Property
allocated corporate expense |
|
|
4,342 |
|
|
|
3,577 |
|
|
|
765 |
|
|
|
12,675 |
|
|
|
10,758 |
|
|
|
1,917 |
|
Non-comparable properties and other (1) |
|
|
788 |
|
|
|
(212 |
) |
|
|
1,000 |
|
|
|
558 |
|
|
|
(2,559 |
) |
|
|
3,117 |
|
NOI from
sold properties |
|
|
674 |
|
|
|
(2,100 |
) |
|
|
2,774 |
|
|
|
(462 |
) |
|
|
(7,427 |
) |
|
|
6,965 |
|
Termination
income |
|
|
(100 |
) |
|
|
(197 |
) |
|
|
97 |
|
|
|
(1,512 |
) |
|
|
(2,221 |
) |
|
|
709 |
|
Straight-line rents |
|
|
(1,293 |
) |
|
|
(1,131 |
) |
|
|
(162 |
) |
|
|
(3,655 |
) |
|
|
(3,154 |
) |
|
|
(501 |
) |
Ground lease
adjustments for straight-line and fair market value |
|
|
5 |
|
|
|
13 |
|
|
|
(8 |
) |
|
|
15 |
|
|
|
38 |
|
|
|
(23 |
) |
Fair market
value and inducement adjustments to base rents |
|
|
(915 |
) |
|
|
(3,847 |
) |
|
|
2,932 |
|
|
|
(5,302 |
) |
|
|
(7,962 |
) |
|
|
2,660 |
|
Less: Tier 2
and noncore properties (2) |
|
|
(8,280 |
) |
|
|
(12,643 |
) |
|
|
4,363 |
|
|
|
(25,435 |
) |
|
|
(38,450 |
) |
|
|
13,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable NOI - Tier 1 and Open Air
properties |
|
$ |
110,282 |
|
|
$ |
116,670 |
|
|
$ |
(6,388 |
) |
|
$ |
329,507 |
|
|
$ |
348,419 |
|
|
$ |
(18,912 |
) |
Comparable NOI percentage change - Tier 1 and Open Air
properties |
|
|
|
|
|
|
-5.5 |
% |
|
|
|
|
|
|
-5.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
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