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Washington Prime Group: Another One Bites The Dust

Mar. 02, 2020 7:00 AM ETWashington Prime Group Inc. (WPGGQ)453 Comments


  • We've been urging caution on this name and comparable REITs for many quarters.
  • WPG has joined peers such as CBL & Associates by substantially reducing its distribution.
  • Let's review fourth-quarter financials, determine realistic capex and cash flow, and see where WPG stands.
  • This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. Get started today »

This article was co-produced with Williams Equity Research.

You no doubt know the song "Another One Bites the Dust."

Written by Queen's bass guitarist, John Deacon, and then recorded and performed by the larger group - thousands of times to millions of screaming fans - the chorus goes like this:

Another one bites the dust. Another one bites the dust. And another one gone, and another one gone. Another one bites the dust. Hey, I'm gonna get you too. Another one bites the dust.

This is hardly inspiring in mere black and white, I know. But when put to "an instantly recognizable funk bass riff and high energy, bordering on manic, vocals", it's a smash hit for obvious reasons.

How many movies and rallies and individuals have since used it to set or enhance the mood? I couldn't tell you except to say that it's a lot. Which makes it something far from original for me to use right now.

But that doesn't make it inaccurate when it comes to Washington Prime Group Inc. (WPG). That company's in trouble, as we just learned for sure this week.

Photo Source

Alas, This Ain't "We Will Rock You"

I wish I was writing about a different Queen song today. I truly do.

It would be awesome if I had "We Will Rock You" stuck in my mind instead. But Washington Prime is anything but rocking right now.

As Seeking Alpha noted early on Feb. 27, it declared a "quarterly cash dividend of 12.5 cents per share vs. 25 cents in the prior quarter" - a 50% cut.

To be fair (again, in Seeking Alpha's words), the troubled mall REIT "was in compliance with all of its unsecured debt covenants at the end of 2019. And, based upon current projections, [it] anticipates remaining in compliance through 2020."

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This article was written by

Brad Thomas profile picture
Leader of iREIT on Alpha
The #1 Service For Safe and Reliable REIT Income

Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 100,000 investors around the world. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps.

The WMR brands include: (1) iREIT on Alpha (Seeking Alpha), and (2) The Dividend Kings (Seeking Alpha), and (3) Wide Moat Research. He is also the editor of The Forbes Real Estate Investor

Thomas has also been featured in Barron's, Forbes Magazine, Kiplinger’s, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox. 

He is the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 (based on page views) and has over 108,000 followers (on Seeking Alpha). Thomas is also the author of The Intelligent REIT Investor Guide (Wiley) and is writing a new book, REITs For Dummies. 

Thomas received a Bachelor of Science degree in Business/Economics from Presbyterian College and he is married with 5 wonderful kids. He has over 30 years of real estate investing experience and is one of the most prolific writers on Seeking Alpha. To learn more about Brad visit HERE.

Analyst’s Disclosure: I am/we are long SPG, SKT, BPY. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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