Washington Prime Group, Inc.NYSE
10% Yield With A 90% Upside At WP Glimcher
Dane Bowler • 48 Comments
Dane Bowler • 48 Comments
Wed, Nov. 30, 12:14 PM
Wed, Nov. 2, 5:06 PM
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Tue, Jun. 21, 1:00 PM
Tue, Jun. 21, 11:28 AM
- Michael Glimcher is out as CEO and Vice Chairman of the mall operator, with board member Louis Conforti taking over as interim CEO. Lead independent director Robert Laikin will become non-executive chairman.
- In other board moves, Nile Overly resigns, and John Levy and John Dillon will join.
- Alongside this, the company plans to change its name to Washington Prime Group.
- Conforti: "The focus is straightforward: maximize current cash flow of the Company which involves traditional and innovative leasing as well as reducing G&A ... We’ll be rolling up our sleeves and concentrating on the basics of our business.”
- WPG +6%
Thu, Jun. 16, 7:56 AM
- General Growth Properties (NYSE:GGP) chose not to make the payment after a $144M loan on suburban Detroit's Lakeside Mall came due this month, and it could be a sign of trouble as $47.5B of shopping-center backed loans are set to mature in the next 18 months, according to BAML.
- WP Glimcher (NYSE:WPG) plans to turn over five of its malls to lenders - four of which have mortgages coming due in the next year - according to a recent company presentation.
- Negotiating loan extensions or refinancing notes could be difficult as lenders mull the future of shopping centers amid lame earnings from still-standing retailers like Macy's and Nordstrom, and bankruptcy filings from the likes of Aeropostale and Sports Authority.
- Green Street Advisors estimates several hundred malls could shut down in the next decade, with those reliant on Macy's, J.C. Penney, and Sears most at risk.
Tue, Jun. 14, 9:33 AM
- The dive in the stock price of WP Glimcher (NYSE:WPG) yesterday after it announced it was not in sale talks with Kite Realty (NYSE:KRG) - not to mention the big jump in KRG's price - was telling, writes Shelly Banjo. For one, it shows investors have little faith WPG can turn around its portfolio of nearly 120 strip malls, and second it suggests the deal wouldn't have been a good investment for Kite.
- Over the past year, shares of WPG are lower by 20% vs. a 14% rise for the broader mall REIT sector. WPG now trades at just 6.4x expected FFO vs. an average 16.6x for retail REITs.
- While it's popular to say malls are dying, says Banjo, the reality is one of a bifurcated market - with those exposed to high-end neighborhoods and luxury retailers doing well. Those in poorer neighborhoods exposed to struggling department stores and regional retailers are doing most of the dying.
- Along with WP Glimcher, CBL & Associates (NYSE:CBL), and Wheeler Real Estate (NASDAQ:WHLR) are the worst three performers in Bloomberg's retail REIT index since January 2015.
- Might other suitors await? High-end shops like Simon Property (NYSE:SPG), Taubman (NYSE:TCO), or General Growth (NYSE:GGP) are likely not interested in WPG's assets, and while Brookfield's purchase of Rouse Properties shows some interest in lower-end real estate, Brookfield already owned one-third of Rouse, and Rouse's portfolio was a small one with just three dozen properties.
Mon, Jun. 13, 1:31 PM
Mon, Jun. 13, 12:49 PM
- Noting it's not company policy to comment on speculation, WP Glimcher (WPG -7.2%) nevertheless says it's not in talks involving a merger or any other strategic alternative with any third parties.
- The stock shot higher last week on a report the company was in talks about a sale to Kite Realty Group (KRG +4.2%).
Thu, Jun. 9, 7:59 AM
- WP Glimcher (NYSE:WPG) shot higher in late action yesterday on a report its in sale talks with Kite Realty Group (NYSE:KRG). Both are similarly sized, with KRG at a $2.3B market cap, and WPG at $2B.
- Kite is no stranger to acquisitions, having purchased Inland Diversified Real Estate Trust in 2014 for $1.2B. WP Glimcher is the product of Washington Prime Group's $2B purchase of Glimcher Realty Trust last year. Washington Prime was spun out of Simon Property Group in 2014. These guys know how to keep their bankers happy.
Tue, Jun. 7, 4:23 PM
- Last month, the company announced the spinoff of the HCR ManorCare portfolio into a independent REIT. The deal is "on track" says HCP CEO Lauralee Martin, and expected to close in H2. SpinCo will be led by Mark Ordan, who hails from WP Glimcher (NYSE:WPG), where he was board chairman.
- Other Martin comments: There's "no question" the supply of senior housing has grown faster than demand in some markets; the company will focus on dividend growth post-spin.
- Presentation slides
Tue, May 17, 5:06 PM
- WP Glimcher (NYSE:WPG) declares $0.25/share quarterly dividend, in line with previous.
- Forward yield 10.05%
- Payable June 15; for shareholders of record June 3; ex-div June 1.
Tue, May 17, 11:02 AM
- Following up on yesterday's story about the divergence between the stock prices of major retailers (down) and those of their landlords (up), Bloomberg's Rani Molla and Shelly Banjo break down the numbers further.
- They find those REITs with a large portion of portfolios concentrated in malls are down 10% Y/Y vs. all REITs, which are higher by 6%. Going further, they find those REITs with exposure to higher-end malls and outlet centers - Simon Property Group (NYSE:SPG) and Tanger Factory (NYSEMKT:SKY) come to mind – have been spared, while those owning older malls have taken the hit. CBL & Associates (NYSE:CBL) and WP Glimcher (NYSE:WPG) are down 40% and 30% this year, respectively.
- It's easy to pick on mall owners, but a broad slowdown at brick-and-mortar stores is ultimately a threat to all retail landlords, as traffic across all types of retail real estate in the U.S. and Canada has fallen as much as 18% Y/Y.
- On the good side is low supply as developers have stopped building, but even that's begun to run its course, they write.
- REITs of interest: O, NNN, GGP, KIM, WRI, MAC, TCO, PEI, SKT, TCO, ROIC, RPAI, IRC, FRT, DDR, WHLR, EQY, KRG, REG