(Address of principal executive offices) | |||
Title of each class | Trading Symbols | Name of each exchange on which registered | ||
Washington Prime Group Inc. (Check One): | x | Accelerated filer | ☐ | Emerging growth company | |||
Non-accelerated filer | ☐ | Smaller reporting company | |||||
Washington Prime Group, L.P. (Check One): | Large accelerated filer | ☐ | Accelerated filer | ☐ | Emerging growth company | ☐ | |
x | Smaller reporting company | ☐ | |||||
• | enhances investors' understanding of the operations of WPG Inc. and WPG L.P. by enabling investors to view the business as a whole in the same manner as management views and operates the business; |
• | eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both WPG Inc. and WPG L.P.; and |
• | creates time and cost efficiencies through the preparation of one set of disclosures instead of two separate sets of disclosures. |
PART I: | FINANCIAL INFORMATION | PAGE |
Item 1. | Consolidated Financial Statements (unaudited) | |
Financial Statements for Washington Prime Group Inc.: | ||
Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 | ||
Consolidated Statements of Operations and Comprehensive (Loss) Income for the three and nine months ended September 30, 2019 and 2018 | ||
Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 and 2018 | ||
Consolidated Statements of Equity for the three and nine months ended September 30, 2019 and 2018 | ||
Financial Statements for Washington Prime Group, L.P.: | ||
Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 | ||
Consolidated Statements of Operations and Comprehensive (Loss) Income for the three and nine months ended September 30, 2019 and 2018 | ||
Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 and 2018 | ||
Consolidated Statements of Equity for the three and nine months ended September 30, 2019 and 2018 | ||
Condensed Notes to Consolidated Financial Statements | ||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
PART II: | OTHER INFORMATION | |
Item 1. | Legal Proceedings | |
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. | Defaults Upon Senior Securities | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Other Information | |
Item 6. | Exhibits | |
SIGNATURES | ||
Item 1. | Financial Statements |
September 30, 2019 | December 31, 2018 | |||||||
ASSETS: | ||||||||
Investment properties at cost | $ | $ | ||||||
Less: accumulated depreciation | ||||||||
Cash and cash equivalents | ||||||||
Tenant receivables and accrued revenue, net | ||||||||
Investment in and advances to unconsolidated entities, at equity | ||||||||
Deferred costs and other assets | ||||||||
Total assets | $ | $ | ||||||
LIABILITIES: | ||||||||
Mortgage notes payable | $ | $ | ||||||
Notes payable | ||||||||
Unsecured term loans | ||||||||
Revolving credit facility | ||||||||
Accounts payable, accrued expenses, intangibles, and deferred revenues | ||||||||
Distributions payable | ||||||||
Cash distributions and losses in unconsolidated entities, at equity | ||||||||
Total liabilities | ||||||||
Redeemable noncontrolling interests | ||||||||
EQUITY: | ||||||||
Stockholders' Equity: | ||||||||
Series H Cumulative Redeemable Preferred Stock, $0.0001 par value, 4,000,000 shares issued and outstanding as of September 30, 2019 and December 31, 2018 | ||||||||
Series I Cumulative Redeemable Preferred Stock, $0.0001 par value, 3,800,000 shares issued and outstanding as of September 30, 2019 and December 31, 2018 | ||||||||
Common stock, $0.0001 par value, 350,000,000 shares authorized; 186,599,793 and 186,074,461 issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | ||||||||
Capital in excess of par value | ||||||||
Accumulated deficit | ( | ) | ( | ) | ||||
Accumulated other comprehensive (loss) income | ( | ) | ||||||
Total stockholders' equity | ||||||||
Noncontrolling interests | ||||||||
Total equity | ||||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | $ | ||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
REVENUE: | |||||||||||||||
Rental income | $ | $ | $ | $ | |||||||||||
Other income | |||||||||||||||
Total revenues | |||||||||||||||
EXPENSES: | |||||||||||||||
Property operating | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Real estate taxes | |||||||||||||||
Advertising and promotion | |||||||||||||||
General and administrative | |||||||||||||||
Ground rent | |||||||||||||||
Impairment loss | |||||||||||||||
Total operating expenses | |||||||||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Gain on disposition of interests in properties, net | |||||||||||||||
Gain on extinguishment of debt, net | |||||||||||||||
Income and other taxes | ( | ) | ( | ) | |||||||||||
Loss from unconsolidated entities, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
NET (LOSS) INCOME | ( | ) | ( | ) | |||||||||||
Net (loss) income attributable to noncontrolling interests | ( | ) | ( | ) | |||||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY | ( | ) | ( | ) | |||||||||||
Less: Preferred share dividends | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
(LOSS) EARNINGS PER COMMON SHARE, BASIC & DILUTED | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
COMPREHENSIVE (LOSS) INCOME: | |||||||||||||||
Net (loss) income | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Unrealized (loss) income on interest rate derivative instruments, net | ( | ) | ( | ) | |||||||||||
Comprehensive (loss) income | ( | ) | ( | ) | |||||||||||
Comprehensive (loss) income attributable to noncontrolling interests | ( | ) | ( | ) | |||||||||||
Comprehensive (loss) income attributable to common shareholders | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
For the Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net (loss) income | $ | ( | ) | $ | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
Depreciation and amortization, including fair value rent, fair value debt, deferred financing costs and equity-based compensation | |||||||
Gain on extinguishment of debt, net | ( | ) | |||||
Gain on disposition of interests in properties and outparcels, net | ( | ) | ( | ) | |||
Impairment loss | |||||||
Change in estimate of collectibility of rental income | |||||||
Loss from unconsolidated entities, net | |||||||
Distributions of income from unconsolidated entities | |||||||
Changes in assets and liabilities: | |||||||
Tenant receivables and accrued revenue, net | |||||||
Deferred costs and other assets | ( | ) | ( | ) | |||
Accounts payable, accrued expenses, deferred revenues and other liabilities | ( | ) | ( | ) | |||
Net cash provided by operating activities | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisitions, net of cash acquired | ( | ) | |||||
Capital expenditures, net | ( | ) | ( | ) | |||
Net proceeds from disposition of interests in properties and outparcels | |||||||
Investments in unconsolidated entities | ( | ) | ( | ) | |||
Distributions of capital from unconsolidated entities | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Distributions to noncontrolling interest holders in properties | ( | ) | ( | ) | |||
Redemption of limited partner units | ( | ) | ( | ) | |||
Net proceeds from issuance of common shares, including common stock plans | |||||||
Distributions on common and preferred shares/units | ( | ) | ( | ) | |||
Proceeds from issuance of debt, net of transaction costs | |||||||
Repayments of debt | ( | ) | ( | ) | |||
Other financing activities | ( | ) | |||||
Net cash used in financing activities | ( | ) | ( | ) | |||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | |||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ | $ | |||||
For the Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||
Preferred Series H | Preferred Series I | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | Non- Controlling Interests | Total Equity | Redeemable Non-Controlling Interests | |||||||||||||||||||||||||||||||
Balance, June 30, 2019 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | $ | ||||||||||||||||||||||||||
Redemption of limited partner units | — | — | — | — | — | — | — | ( | ) | ( | ) | — | ||||||||||||||||||||||||||||
Other | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | — | |||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Adjustments to noncontrolling interests | — | — | — | ( | ) | — | — | ( | ) | — | — | |||||||||||||||||||||||||||||
Distributions on common shares/units ($0.25 per common share/unit) | — | — | — | — | ( | ) | — | ( | ) | ( | ) | ( | ) | — | ||||||||||||||||||||||||||
Distributions declared on preferred shares | — | — | — | — | ( | ) | — | ( | ) | — | ( | ) | — | |||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ) | ( | ) | ( | ) | ( | ) | — | ||||||||||||||||||||||||||
Net loss, excluding $60 of distributions to preferred unitholders | — | — | — | — | ( | ) | — | ( | ) | ( | ) | ( | ) | — | ||||||||||||||||||||||||||
Balance, September 30, 2019 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | $ | ||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||
Preferred Series H | Preferred Series I | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Total Stockholders' Equity | Non- Controlling Interests | Total Equity | Redeemable Non-Controlling Interests | |||||||||||||||||||||||||||||||
Balance, December 31, 2018 | $ | $ | $ | $ | $ | ( | ) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Redemption of limited partner units | — | — | — | — | — | — | — | ( | ) | ( | ) | — | ||||||||||||||||||||||||||||
Other | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | — | |||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Adjustments to noncontrolling interests | — | — | — | ( | ) | — | — | ( | ) | — | — | |||||||||||||||||||||||||||||
Distributions on common shares/units ($0.75 per common share/unit) | — | — | — | — | ( | ) | — | ( | ) | ( | ) | ( | ) | — | ||||||||||||||||||||||||||
Distributions declared on preferred shares | — | — | — | — | ( | ) | — | ( | ) | — | ( | ) | — | |||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ) | ( | ) | ( | ) | ( | ) | — | ||||||||||||||||||||||||||
Net loss, excluding $180 of distributions to preferred unitholders | — | — | — | — | ( | ) | — | ( | ) | ( | ) | ( | ) | — | ||||||||||||||||||||||||||
Balance, September 30, 2019 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | $ | ||||||||||||||||||||||||||
For the Three Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
Preferred Series H | Preferred Series I | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Stockholders' Equity | Non- Controlling Interests | Total Equity | Redeemable Non-Controlling Interests | |||||||||||||||||||||||||||||||
Balance, June 30, 2018 | $ | $ | $ | $ | $ | ( | ) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Other | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | — | |||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Adjustments to noncontrolling interests | — | — | — | ( | ) | — | — | ( | ) | — | — | |||||||||||||||||||||||||||||
Distributions on common shares/units ($0.25 per common share/unit) | — | — | — | — | ( | ) | — | ( | ) | ( | ) | ( | ) | — | ||||||||||||||||||||||||||
Distributions declared on preferred shares | — | — | — | — | ( | ) | — | ( | ) | — | ( | ) | — | |||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net income, excluding $60 of distributions to preferred unitholders | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance, September 30, 2018 | $ | $ | $ | $ | $ | ( | ) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
Preferred Series H | Preferred Series I | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Stockholders' Equity | Non- Controlling Interests | Total Equity | Redeemable Non-Controlling Interests | |||||||||||||||||||||||||||||||
Balance, December 31, 2017 | $ | $ | $ | $ | $ | ( | ) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Cumulative effect of accounting standards | — | — | — | ( | ) | — | ||||||||||||||||||||||||||||||||||
Redemption of limited partner units | — | — | — | — | — | — | — | ( | ) | ( | ) | — | ||||||||||||||||||||||||||||
Other | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | — | |||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Adjustments to noncontrolling interests | — | — | — | — | — | ( | ) | — | — | |||||||||||||||||||||||||||||||
Distributions on common shares/units ($0.75 per common share/unit) | — | — | — | — | ( | ) | — | ( | ) | ( | ) | ( | ) | — | ||||||||||||||||||||||||||
Distributions declared on preferred shares | — | — | — | — | ( | ) | — | ( | ) | — | ( | ) | — | |||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net income, excluding $180 of distributions to preferred unitholders | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance, September 30, 2018 | $ | $ | $ | $ | $ | ( | ) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||
ASSETS: | ||||||||
Investment properties at cost | $ | $ | ||||||
Less: accumulated depreciation | ||||||||
Cash and cash equivalents | ||||||||
Tenant receivables and accrued revenue, net | ||||||||
Investment in and advances to unconsolidated entities, at equity | ||||||||
Deferred costs and other assets | ||||||||
Total assets | $ | $ | ||||||
LIABILITIES: | ||||||||
Mortgage notes payable | $ | $ | ||||||
Notes payable | ||||||||
Unsecured term loans | ||||||||
Revolving credit facility | ||||||||
Accounts payable, accrued expenses, intangibles, and deferred revenues | ||||||||
Distributions payable | ||||||||
Cash distributions and losses in unconsolidated entities, at equity | ||||||||
Total liabilities | ||||||||
Redeemable noncontrolling interests | ||||||||
EQUITY: | ||||||||
Partners' Equity: | ||||||||
General partner | ||||||||
Preferred equity, 7,800,000 units issued and outstanding as of September 30, 2019 and December 31, 2018 | ||||||||
Common equity, 186,599,793 and 186,074,461 units issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | ||||||||
Total general partners' equity | ||||||||
Limited partners, 34,714,281 and 34,755,660 units issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | ||||||||
Total partners' equity | ||||||||
Noncontrolling interests | ||||||||
Total equity | ||||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | $ | ||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
REVENUE: | |||||||||||||||
Rental income | $ | $ | $ | $ | |||||||||||
Other income | |||||||||||||||
Total revenues | |||||||||||||||
EXPENSES: | |||||||||||||||
Property operating | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Real estate taxes | |||||||||||||||
Advertising and promotion | |||||||||||||||
General and administrative | |||||||||||||||
Ground rent | |||||||||||||||
Impairment loss | |||||||||||||||
Total operating expenses | |||||||||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Gain on disposition of interests in properties, net | |||||||||||||||
Gain on extinguishment of debt, net | |||||||||||||||
Income and other taxes | ( | ) | ( | ) | |||||||||||
Loss from unconsolidated entities, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
NET (LOSS) INCOME ATTRIBUTABLE TO UNITHOLDERS | ( | ) | ( | ) | |||||||||||
Less: Preferred unit distributions | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON UNITHOLDERS | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON UNITHOLDERS: | |||||||||||||||
General partner | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Limited partners | ( | ) | ( | ) | |||||||||||
Net (loss) income attributable to common unitholders | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
(LOSS) EARNINGS PER COMMON UNIT, BASIC & DILUTED | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
COMPREHENSIVE (LOSS) INCOME: | |||||||||||||||
Net (loss) income | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Unrealized (loss) income on interest rate derivative instruments, net | ( | ) | ( | ) | |||||||||||
Comprehensive (loss) income | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
For the Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net (loss) income | $ | ( | ) | $ | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
Depreciation and amortization, including fair value rent, fair value debt, deferred financing costs and equity-based compensation | |||||||
Gain on extinguishment of debt, net | ( | ) | |||||
Gain on disposition of interests in properties and outparcels, net | ( | ) | ( | ) | |||
Impairment loss | |||||||
Change in estimate of collectibility of rental income | |||||||
Loss from unconsolidated entities, net | |||||||
Distributions of income from unconsolidated entities | |||||||
Changes in assets and liabilities: | |||||||
Tenant receivables and accrued revenue, net | |||||||
Deferred costs and other assets | ( | ) | ( | ) | |||
Accounts payable, accrued expenses, deferred revenues and other liabilities | ( | ) | ( | ) | |||
Net cash provided by operating activities | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisitions, net of cash acquired | ( | ) | |||||
Capital expenditures, net | ( | ) | ( | ) | |||
Net proceeds from disposition of interests in properties and outparcels | |||||||
Investments in unconsolidated entities | ( | ) | ( | ) | |||
Distributions of capital from unconsolidated entities | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Distributions to noncontrolling interest holders in properties | ( | ) | ( | ) | |||
Redemption of limited partner units | ( | ) | ( | ) | |||
Net proceeds from issuance of common units, including equity-based compensation plans | |||||||
Distributions to unitholders | ( | ) | ( | ) | |||
Proceeds from issuance of debt, net of transaction costs | |||||||
Repayments of debt | ( | ) | ( | ) | |||
Other financing activities | ( | ) | |||||
Net cash used in financing activities | ( | ) | ( | ) | |||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | |||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ | $ | |||||
For the Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
General Partner | ||||||||||||||||||||||||||||||||
Preferred | Common | Total | Limited Partners | Total Partners' Equity | Non- Controlling Interests | Total Equity | Redeemable Non-Controlling Interests | |||||||||||||||||||||||||
Balance, June 30, 2019 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Redemption of limited partner units | — | — | — | ( | ) | ( | ) | — | ( | ) | — | |||||||||||||||||||||
Other | — | ( | ) | ( | ) | — | ( | ) | — | ( | ) | — | ||||||||||||||||||||
Equity-based compensation | — | — | — | — | ||||||||||||||||||||||||||||
Adjustments to limited partners' interests | — | ( | ) | ( | ) | — | — | — | — | |||||||||||||||||||||||
Distributions on common units ($0.25 per common unit) | — | ( | ) | ( | ) | ( | ) | ( | ) | — | ( | ) | — | |||||||||||||||||||
Distributions declared on preferred units | ( | ) | — | ( | ) | — | ( | ) | — | ( | ) | ( | ) | |||||||||||||||||||
Other comprehensive loss | — | ( | ) | ( | ) | ( | ) | ( | ) | — | ( | ) | — | |||||||||||||||||||
Net income (loss) | ( | ) | ( | ) | ( | ) | ( | ) | — | ( | ) | |||||||||||||||||||||
Balance, September 30, 2019 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
For the Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
General Partner | ||||||||||||||||||||||||||||||||
Preferred | Common | Total | Limited Partners | Total Partners' Equity | Non- Controlling Interests | Total Equity | Redeemable Non-Controlling Interests | |||||||||||||||||||||||||
Balance, December 31, 2018 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Redemption of limited partner units | — | — | — | ( | ) | ( | ) | — | ( | ) | — | |||||||||||||||||||||
Other | — | ( | ) | ( | ) | — | ( | ) | — | ( | ) | — | ||||||||||||||||||||
Exercise of stock options | — | — | — | — | ||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | |||||||||||||||||||||||||||||
Adjustments to limited partners' interests | — | ( | ) | ( | ) | — | — | — | — | |||||||||||||||||||||||
Distributions on common units ($0.75 per common unit) | — | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | — | ||||||||||||||||||
Distributions declared on preferred units | ( | ) | — | ( | ) | — | ( | ) | — | ( | ) | ( | ) | |||||||||||||||||||
Other comprehensive loss | — | ( | ) | ( | ) | ( | ) | ( | ) | — | ( | ) | — | |||||||||||||||||||
Net income (loss) | ( | ) | ( | ) | ( | ) | ( | ) | — | ( | ) | |||||||||||||||||||||
Balance, September 30, 2019 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
For the Three Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||
General Partner | ||||||||||||||||||||||||||||||||
Preferred | Common | Total | Limited Partners | Total Partners' Equity | Non- Controlling Interests | Total Equity | Redeemable Non-Controlling Interests | |||||||||||||||||||||||||
Balance, June 30, 2018 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Other | — | ( | ) | ( | ) | — | ( | ) | — | ( | ) | — | ||||||||||||||||||||
Equity-based compensation | — | — | — | |||||||||||||||||||||||||||||
Adjustments to limited partners' interests | — | ( | ) | ( | ) | — | — | — | — | |||||||||||||||||||||||
Distributions on common units ($0.25 per common unit) | — | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | — | ||||||||||||||||||||
Distributions declared on preferred units | ( | ) | — | ( | ) | — | ( | ) | — | ( | ) | ( | ) | |||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||
Balance, September 30, 2018 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
For the Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||
General Partner | ||||||||||||||||||||||||||||||||
Preferred | Common | Total | Limited Partners | Total Partners' Equity | Non- Controlling Interests | Total Equity | Redeemable Non-Controlling Interests | |||||||||||||||||||||||||
Balance, December 31, 2017 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Cumulative effect of accounting standards | — | — | ||||||||||||||||||||||||||||||
Redemption of limited partner units | — | — | — | ( | ) | ( | ) | — | ( | ) | — | |||||||||||||||||||||
Other | — | ( | ) | ( | ) | — | ( | ) | — | ( | ) | — | ||||||||||||||||||||
Equity-based compensation | — | — | — | |||||||||||||||||||||||||||||
Adjustments to limited partners' interests | — | ( | ) | — | — | — | — | |||||||||||||||||||||||||
Distributions on common units ($0.75 per common unit) | — | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | — | ||||||||||||||||||
Distributions declared on preferred units | ( | ) | — | ( | ) | — | ( | ) | — | ( | ) | ( | ) | |||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||
Balance, September 30, 2018 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
1. | Organization |
2. | Basis of Presentation and Principles of Consolidation |
3. | Summary of Significant Accounting Policies |
• | Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. |
• | Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as interest rates, foreign exchange rates, and yield curves, that are observable at commonly quoted intervals. |
• | Level 3 inputs are unobservable inputs for the asset or liability which are typically based on an entity's own assumptions, as there is little, if any, related market activity. |
Balance at December 31, 2018 | Adjustments Due to ASU 2016-02 | Balance at January 1, 2019 | |||||||||
Balance Sheet | |||||||||||
Assets | |||||||||||
Deferred costs and other assets | $ | $ | $ | ||||||||
Liabilities | |||||||||||
Accounts payable, accrued expenses, intangibles, and deferred revenues | $ | $ | $ | ||||||||
Balance at September 30, | Balance at December 31, | ||||||||||||||
2019 | 2018 | 2018 | 2017 | ||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||
Restricted cash | |||||||||||||||
Total cash, cash equivalents and restricted cash | $ | $ | $ | $ | |||||||||||
4. | Investment in Real Estate |
Investment properties | $ | |||
Investment in and advances to unconsolidated entities, at equity | ||||
Deferred costs and other assets | ||||
Accounts payable, accrued expenses, intangibles, and deferred revenue | ( | ) | ||
Net cash paid for acquisitions | $ | |||
Sales Date | Parcels Sold | Purchase Price | Sales Proceeds | ||||||||
January 18, 2019 | $ | $ | |||||||||
February 11, 2019 | |||||||||||
April 3, 2019 | |||||||||||
June 28, 2019 | |||||||||||
August 1, 2019 | |||||||||||
August 29, 2019 | |||||||||||
September 16, 2019 | |||||||||||
September 27, 2019 | |||||||||||
$ | $ | ||||||||||
Sales Date | Parcels Sold | Purchase Price | Sales Proceeds | ||||||||
January 12, 2018 | $ | $ | |||||||||
June 29, 2018 | |||||||||||
July 27, 2018 | |||||||||||
$ | $ | ||||||||||
5. | Investment in Unconsolidated Entities, at Equity |
• | The O'Connor Joint Venture I |
• | The O'Connor Joint Venture II |
• | The Seminole Joint Venture |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Total revenues | $ | $ | $ | $ | |||||||||||
Operating expenses | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Operating income | |||||||||||||||
Loss on sale of interests in properties | ( | ) | ( | ) | ( | ) | |||||||||
Interest expense, taxes, and other, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net (loss) income of the Company's unconsolidated real estate entities | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Loss from the Company's unconsolidated real estate entities | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
September 30, 2019 | December 31, 2018 | |||||||
Assets: | ||||||||
Investment properties at cost, net | $ | $ | ||||||
Construction in progress | ||||||||
Cash and cash equivalents | ||||||||
Tenant receivables and accrued revenue, net | ||||||||
Deferred costs and other assets (1) | ||||||||
Total assets | $ | $ | ||||||
Liabilities and Members’ Equity: | ||||||||
Mortgage notes payable | $ | $ | ||||||
Accounts payable, accrued expenses, intangibles, and deferred revenues(2) | ||||||||
Total liabilities | ||||||||
Members’ equity | ||||||||
Total liabilities and members’ equity | $ | $ | ||||||
Our share of members’ equity, net | $ | $ | ||||||
Our share of members’ equity, net | $ | $ | ||||||
Advances and excess investment | ||||||||
Net investment in and advances to unconsolidated entities, at equity(3) | $ | $ | ||||||
(1) | Includes value of acquired in-place leases and acquired above-market leases with a net book value of $ |
(2) | Includes the net book value of below market leases of $ |
(3) | Includes $ |
6. | Indebtedness |
September 30, 2019 | December 31, 2018 | |||||||
Face amount of mortgage loans | $ | $ | ||||||
Fair value adjustments, net | ||||||||
Debt issuance cost, net | ( | ) | ( | ) | ||||
Carrying value of mortgage loans | $ | $ | ||||||
Balance at December 31, 2018 | $ | ||
Debt borrowings, net of issuance costs | |||
Debt canceled upon lender foreclosures, net of debt issuance costs | ( | ) | |
Debt amortization payments | ( | ) | |
Repayment of debt | ( | ) | |
Amortization of fair value and other adjustments | ( | ) | |
Amortization of debt issuance costs | |||
Balance at September 30, 2019 | $ | ||
September 30, 2019 | December 31, 2018 | |||||||
Notes payable: | ||||||||
Face amount - the Exchange Notes(1) | $ | $ | ||||||
Face amount - Senior Notes due 2024(2) | ||||||||
Debt discount, net | ( | ) | ( | ) | ||||
Debt issuance costs, net | ( | ) | ( | ) | ||||
Total carrying value of notes payable | $ | $ | ||||||
Unsecured term loans:(7) | ||||||||
Face amount - Term Loan(3)(4) | $ | $ | ||||||
Face amount - December 2015 Term Loan(5) | ||||||||
Debt issuance costs, net | ( | ) | ( | ) | ||||
Total carrying value of unsecured term loans | $ | $ | ||||||
Revolving credit facility:(3)(6) | ||||||||
Face amount | $ | $ | ||||||
Debt issuance costs, net | ( | ) | ( | ) | ||||
Total carrying value of revolving credit facility | $ | $ | ||||||
September 30, 2019 | December 31, 2018 | |||||
Book value of fixed-rate mortgages(1) | $ | $ | ||||
Fair value of fixed-rate mortgages | $ | $ | ||||
Weighted average discount rates assumed in calculation of fair value for fixed-rate mortgages | % | % | ||||
Book value of fixed-rate unsecured debt(1) | $ | $ | ||||
Fair value of fixed-rate unsecured debt | $ | $ | ||||
Weighted average discount rates assumed in calculation of fair value for fixed-rate unsecured debt | % | % | ||||
7. | Derivative Financial Instruments |
Derivatives designated as hedging instruments: | Balance Sheet Location | September 30, 2019 | December 31, 2018 | |||||||
Interest rate products | Asset derivatives | Deferred costs and other assets | $ | $ | ||||||
Interest rate products | Liability derivatives | Accounts payable, accrued expenses, intangibles, and deferred revenue | $ | $ | ||||||
Derivatives in Cash Flow Hedging Relationships (Interest rate products) | Location of Gain or Loss Recognized in Income on Derivatives | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Amount of (Loss) or Gain Recognized in OCI on Derivative | Interest expense | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||
Amount of Gain Reclassified from AOCI into Income | Interest expense | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Effect of Cash Flow Hedges on Consolidated Statements of Operations | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Total interest expense presented in the consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Amount of gain reclassified from accumulated other comprehensive income into interest expense | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Quoted Prices in Active Markets for Identical Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at September 30, 2019 | ||||||||||||
Derivative instruments, net | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Quoted Prices in Active Markets for Identical Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at December 31, 2018 | ||||||||||||
Derivative instruments, net | $ | $ | $ | $ | |||||||||||
8. | Rental Income |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating lease payments, fixed | $ | $ | $ | $ | ||||||||||||
Operating lease payments, variable | ||||||||||||||||
Amortization of straight-line rent, inducements, and rent abatements | ||||||||||||||||
Net amortization/accretion of above and below-market leases | ||||||||||||||||
Change in estimate of collectibility of rental income | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Total rental income | $ | $ | $ | $ | ||||||||||||
2019 (October - December) | $ | |||
2020 | ||||
2021 | ||||
2022 | ||||
2023 | ||||
Thereafter | ||||
$ | ||||
9. | Equity |
2019 Annual Long-Term Incentive Awards | 2018 Annual Long-Term Incentive Awards | |||
Grant Date | February 20, 2019 | February 20, 2018 | ||
RSUs issued | ||||
Grant date fair value per unit | $ | $ | ||
PSUs issued | ||||
Grant date fair value per unit | $ | $ | ||
10. | Commitments and Contingencies |
2019 (October - December) | $ | |||
2020 | ||||
2021 | ||||
2022 | ||||
2023 | ||||
Thereafter | ||||
Total lease payments | ||||
Less: Discount | ||||
Present value of lease liabilities | $ | |||
11. | (Loss) Earnings Per Common Share/Unit |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Loss) Earnings Per Common Share, Basic: | ||||||||||||||||
Net (loss) income attributable to common shareholders - basic | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Weighted average shares outstanding - basic | ||||||||||||||||
(Loss) Earnings per common share, basic | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
(Loss) Earnings Per Common Share, Diluted: | ||||||||||||||||
Net (loss) income attributable to common shareholders - basic | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Net (loss) income attributable to limited partner unitholders | ( | ) | ( | ) | ||||||||||||
Net (loss) income attributable to common shareholders - diluted | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Weighted average common shares outstanding - basic | ||||||||||||||||
Weighted average operating partnership units outstanding | ||||||||||||||||
Weighted average additional dilutive securities outstanding | ||||||||||||||||
Weighted average common shares outstanding - diluted | ||||||||||||||||
(Loss) Earnings per common share, diluted | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Loss) Earnings Per Common Unit, Basic & Diluted: | ||||||||||||||||
Net (loss) income attributable to common unitholders - basic and diluted | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Weighted average common units outstanding - basic | ||||||||||||||||
Weighted average additional dilutive securities outstanding | ||||||||||||||||
Weighted average units outstanding - diluted | ||||||||||||||||
(Loss) Earnings per common unit, basic & diluted | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
12. | Subsequent Events |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Sales Date | Parcels Sold | Purchase Price | Sales Proceeds | ||||||||
January 18, 2019 | 8 | $ | 9,435 | $ | 9,364 | ||||||
February 11, 2019 | 1 | 2,766 | 2,720 | ||||||||
April 3, 2019 | 1 | 2,048 | 2,016 | ||||||||
June 28, 2019 | 3 | 3,050 | 3,031 | ||||||||
August 1, 2019 | 1 | 1,210 | 1,199 | ||||||||
August 29, 2019 | 1 | 3,397 | 3,394 | ||||||||
September 16, 2019 | 1 | 3,205 | 3,118 | ||||||||
September 27, 2019 | 2 | 4,412 | 4,377 | ||||||||
18 | $ | 29,523 | $ | 29,219 | |||||||
September 30, 2019 | September 30, 2018 | % Change | ||||
Ending occupancy(1) | 92.9% | 94.0% | (1.1)% | |||
Average base minimum rent per square foot(2) | $21.28 | $21.86 | (2.7)% | |||
(1) | Ending occupancy is the percentage of gross leasable area, or GLA, which is leased as of the last day of the reporting period. We include all Company-owned space except for anchors, majors, freestanding office and outlots at our enclosed retail properties in the calculation of ending occupancy. Open air property GLA included in the calculation relates to all Company-owned space other than office space. |
(2) | Average base minimum rent per square foot is the average base minimum rent charge in effect for the reporting period for all tenants that would qualify to be included in ending occupancy. |
• | funded capital expenditures and redevelopment projects of $119.6 million; |
• | received net proceeds from the sale of interests in properties and outparcels of $33.2 million; |
• | funded investments in unconsolidated entities of $13.8 million; |
• | received distributions of capital from unconsolidated entities of $21.7 million; |
• | received net proceeds from our debt financing, refinancing and repayment activities of $131.4 million; and |
• | funded distributions to common and preferred shareholders and unitholders of $178.1 million. |
• | excess cash generated from operating performance and working capital reserves; |
• | borrowings on our debt arrangements; |
• | opportunistic asset sales; |
• | additional secured or unsecured debt financing; or |
• | additional equity raised in the public or private markets. |
September 30, 2019 | December 31, 2018 | |||||||
Face amount of mortgage loans | $ | 1,171,508 | $ | 980,276 | ||||
Fair value adjustments, net | 4,038 | 5,764 | ||||||
Debt issuance cost, net | (5,417 | ) | (2,771 | ) | ||||
Carrying value of mortgage loans | $ | 1,170,129 | $ | 983,269 | ||||
Balance at December 31, 2018 | $ | 983,269 | |
Debt borrowings, net of issuance costs | 293,442 | ||
Debt canceled upon lender foreclosures, net of debt issuance costs | (45,160 | ) | |
Debt amortization payments | (13,367 | ) | |
Repayment of debt | (47,175 | ) | |
Amortization of fair value and other adjustments | (1,726 | ) | |
Amortization of debt issuance costs | 846 | ||
Balance at September 30, 2019 | $ | 1,170,129 | |
September 30, 2019 | December 31, 2018 | |||||||
Notes payable: | ||||||||
Face amount - the Exchange Notes(1) | $ | 250,000 | $ | 250,000 | ||||
Face amount - Senior Notes due 2024(2) | 720,900 | 750,000 | ||||||
Debt discount, net | (8,234 | ) | (9,680 | ) | ||||
Debt issuance costs, net | (5,950 | ) | (7,623 | ) | ||||
Total carrying value of notes payable | $ | 956,716 | $ | 982,697 | ||||
Unsecured term loans:(7) | ||||||||
Face amount - Term Loan(3)(4) | $ | 350,000 | $ | 350,000 | ||||
Face amount - December 2015 Term Loan(5) | 340,000 | 340,000 | ||||||
Debt issuance costs, net | (3,641 | ) | (4,491 | ) | ||||
Total carrying value of unsecured term loans | $ | 686,359 | $ | 685,509 | ||||
Revolving credit facility:(3)(6) | ||||||||
Face amount | $ | 217,000 | $ | 290,000 | ||||
Debt issuance costs, net | (3,141 | ) | (3,998 | ) | ||||
Total carrying value of revolving credit facility | $ | 213,859 | $ | 286,002 | ||||
September 30, 2019 | Weighted Average Interest Rate | December 31, 2018 | Weighted Average Interest Rate | |||||||||||
Fixed-rate debt, face amount (1) | $ | 2,667,408 | 5.05 | % | $ | 2,505,276 | 4.91 | % | ||||||
Variable-rate debt, face amount | 382,000 | 3.98 | % | 455,000 | 3.87 | % | ||||||||
Total face amount of debt | 3,049,408 | 4.91 | % | 2,960,276 | 4.75 | % | ||||||||
Note discount | (8,234 | ) | (9,680 | ) | ||||||||||
Fair value adjustments, net | 4,038 | 5,764 | ||||||||||||
Debt issuance costs, net | (18,149 | ) | (18,883 | ) | ||||||||||
Total carrying value of debt | $ | 3,027,063 | $ | 2,937,477 | ||||||||||
2019 | 2020 - 2021 | 2022 - 2023 | Thereafter | Total | ||||||||||||||||
Long term debt(1) | $ | 4,567 | $ | 625,603 | $ | 1,109,000 | $ | 1,310,238 | $ | 3,049,408 | ||||||||||
Interest payments(2) | 37,123 | 265,356 | 196,694 | 101,246 | 600,419 | |||||||||||||||
Distributions(3) | 3,568 | — | — | — | 3,568 | |||||||||||||||
Ground rent/operating leases(4) | 570 | 4,402 | 3,621 | 21,376 | 29,969 | |||||||||||||||
Purchase/tenant obligations(5) | 30,964 | 92,893 | — | — | 123,857 | |||||||||||||||
Total | $ | 76,792 | $ | 988,254 | $ | 1,309,315 | $ | 1,432,860 | $ | 3,807,221 | ||||||||||
2019 | 2020 - 2021 | 2022 - 2023 | Thereafter | Total | ||||||||||||||||
Long term debt(1) | $ | 875 | $ | 69,938 | $ | 20,062 | $ | 528,068 | $ | 618,943 | ||||||||||
Interest payments(2) | 6,394 | 47,858 | 42,381 | 44,655 | 141,288 | |||||||||||||||
Ground rent/operating leases(3) | 985 | 7,942 | 8,053 | 189,002 | 205,982 | |||||||||||||||
Purchase/tenant obligations(4) | 4,436 | 13,307 | — | — | 17,743 | |||||||||||||||
Total | $ | 12,690 | $ | 139,045 | $ | 70,496 | $ | 761,725 | $ | 983,956 | ||||||||||
2019 Annual Long-Term Incentive Awards | 2018 Annual Long-Term Incentive Awards | |||
Grant Date | February 20, 2019 | February 20, 2018 | ||
RSUs issued | 572,163 | 587,000 | ||
Grant date fair value per unit | $5.77 | $6.10 | ||
PSUs issued | 572,163 | 587,000 | ||
Grant date fair value per unit | $4.98 | $4.88 | ||
Redevelopments and expansions | $ | 55,433 | ||
Tenant allowances | 19,759 | |||
Operational capital expenditures | 20,785 | |||
Total(1) | $ | 95,977 | ||
• | 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 gains and losses upon acquisition of controlling interests in 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. |
• | do not represent cash flow from operations as defined by GAAP; |
• | should not be considered as alternatives to net (loss) income determined in accordance with GAAP as a measure of operating performance; and |
• | are not alternatives to cash flows as a measure of liquidity. |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
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 | ) | ||||||||
Adjustments to Arrive at FFO: | ||||||||||||||||
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 of the Operating Partnership (1) | 100,914 | 82,072 | 232,240 | 252,439 | ||||||||||||
FFO allocable to limited partners | 15,695 | 12,719 | 36,165 | 39,156 | ||||||||||||
FFO allocable to common shareholders/unitholders | $ | 85,219 | $ | 69,353 | $ | 196,075 | $ | 213,283 | ||||||||
Diluted (loss) earnings per share/unit | $ | (0.02 | ) | $ | 0.00 | $ | (0.14 | ) | $ | 0.13 | ||||||
Adjustments to arrive at FFO per share/unit: | ||||||||||||||||
Real estate depreciation and amortization, including joint venture impact | 0.36 | 0.37 | 1.07 | 1.01 | ||||||||||||
Impairment loss, including (gain) on disposition of interests in properties, net | 0.11 | 0.00 | 0.11 | (0.01 | ) | |||||||||||
Diluted FFO per share/unit | $ | 0.45 | $ | 0.37 | $ | 1.04 | $ | 1.13 | ||||||||
Weighted average shares outstanding - basic | 188,603,382 | 187,845,587 | 188,392,694 | 187,647,504 | ||||||||||||
Weighted average limited partnership units outstanding | 34,735,136 | 34,711,788 | 34,739,598 | 34,699,815 | ||||||||||||
Weighted average additional dilutive securities outstanding (2) | 837,529 | 1,435,195 | 543,925 | 1,449,179 | ||||||||||||
Weighted average shares/units outstanding - diluted | 224,176,047 | 223,992,570 | 223,676,217 | 223,796,498 | ||||||||||||
(1) | FFO of the operating partnership decreased $20.2 million for the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018. During the nine months ended September 30, 2019, we received $36.2 million less in operating income related to comparable properties, which can be primarily attributed to the Anchor Store Impact and the sale of certain outparcels. Additionally, general and administrative expenses increased $9.5 million, primarily related to the impact of the new lease accounting standard which prohibits the Company from capitalizing non-incremental internal leasing and legal efforts. Lastly, interest expense, net, increased $9.2 million, which was primarily attributable to corporate debt activity primarily related to higher interest rates due to the credit rating downgrade. Offsetting these decreases was a $38.9 million increase related to the gain on extinguishment of debt which primarily related to the transition of Towne West Square to the lender. |
(2) | The weighted average additional dilutive securities for the three and nine months ended September 30, 2019 are excluded for purposes of calculating diluted (loss) earnings per share/unit because their effect would have been anti-dilutive. |
• | straight-line rents and fair value rent amortization; |
• | management fee allocation to promote comparability across periods; and |
• | termination income, out-parcel sales and material insurance proceeds, which are deemed to be outside of normal operating results. |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net (loss) income | $ | (1,665 | ) | $ | 4,115 | $ | (21,108 | ) | $ | 39,819 | ||||||
Loss from unconsolidated entities | 241 | 577 | 2,002 | 310 | ||||||||||||
Income and other taxes | (120 | ) | (227 | ) | 465 | 859 | ||||||||||
Gain on extinguishment of debt, net | (38,913 | ) | — | (38,913 | ) | — | ||||||||||
Gain on disposition of interests in properties, net | (9,825 | ) | (3,864 | ) | (26,056 | ) | (20,108 | ) | ||||||||
Interest expense, net | 38,833 | 36,582 | 114,806 | 105,627 | ||||||||||||
Operating (loss) income | (11,449 | ) | 37,183 | 31,196 | 126,507 | |||||||||||
Depreciation and amortization | 70,948 | 71,010 | 209,142 | 196,100 | ||||||||||||
Impairment loss | 28,936 | — | 28,936 | — | ||||||||||||
General and administrative | 12,210 | 9,124 | 39,459 | 29,969 | ||||||||||||
Fee income | (3,242 | ) | (2,562 | ) | (8,669 | ) | (7,044 | ) | ||||||||
Management fee allocation | 39 | 21 | 124 | 5 | ||||||||||||
Pro-rata share of unconsolidated joint ventures in comp NOI | 17,619 | 18,434 | 52,437 | 53,859 | ||||||||||||
Property allocated corporate expense | 4,342 | 3,577 | 12,675 | 10,758 | ||||||||||||
Non-comparable properties and other (1) | 788 | (212 | ) | 558 | (2,559 | ) | ||||||||||
NOI from sold properties | 674 | (2,100 | ) | (462 | ) | (7,427 | ) | |||||||||
Termination income | (100 | ) | (197 | ) | (1,512 | ) | (2,221 | ) | ||||||||
Straight-line rents | (1,293 | ) | (1,131 | ) | (3,655 | ) | (3,154 | ) | ||||||||
Ground lease adjustments for straight-line and fair market value | 5 | 13 | 15 | 38 | ||||||||||||
Fair market value and inducement adjustments to base rents | (915 | ) | (3,847 | ) | (5,302 | ) | (7,962 | ) | ||||||||
Less: Tier 2 and noncore properties (2) | (8,280 | ) | (12,643 | ) | (25,435 | ) | (38,450 | ) | ||||||||
Comparable NOI - Tier 1 and open air properties | $ | 110,282 | $ | 116,670 | $ | 329,507 | $ | 348,419 | ||||||||
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. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
• | reducing the liquidity and market price of our common stock; |
• | eliminating the open market trading of our common stock; |
• | reducing the number of investors willing to hold or acquire our common stock; and |
• | reducing our ability to retain, attract and motivate the members of our board of directors, officers and employees through the use of equity-based compensation and equity incentives. |
Item 4. | Mine Safety Disclosures |
Exhibit Number | Exhibit Descriptions |
10.1+ | |
10.2+ | |
10.3+ | |
10.4 | |
31.1* | |
31.2* | |
31.3* | |
31.4* | |
32.1* | |
32.2* | |
101.INS* | XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. |
101.SCH* | XBRL Taxonomy Extension Schema Document |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document |
Washington Prime Group Inc. | |||
Washington Prime Group, L.P. | |||
by: Washington Prime Group Inc., its sole general partner | |||
Date: | October 24, 2019 | By: | /s/ Mark E. Yale |
Mark E. Yale Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||
Date: | October 24, 2019 | By: | /s/ Melissa A. Indest |
Melissa A. Indest Executive Vice President, Finance and Chief Accounting Officer (Principal Accounting Officer) | |||
1. | I have reviewed this Quarterly Report on Form 10-Q of Washington Prime Group Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | October 24, 2019 | /s/ Louis G. Conforti | |
Louis G. Conforti Chief Executive Officer and Director | |||
1. | I have reviewed this Quarterly Report on Form 10-Q of Washington Prime Group Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | October 24, 2019 | /s/ Mark E. Yale | |
Mark E. Yale Executive Vice President and Chief Financial Officer | |||
1. | I have reviewed this Quarterly Report on Form 10-Q of Washington Prime Group, L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | October 24, 2019 | /s/ Louis G. Conforti | |
Louis G. Conforti Chief Executive Officer and Director of Washington Prime Group Inc., general partner of Washington Prime Group, L.P. | |||
1. | I have reviewed this Quarterly Report on Form 10-Q of Washington Prime Group, L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | October 24, 2019 | /s/ Mark E. Yale | |
Mark E. Yale Executive Vice President and Chief Financial Officer of Washington Prime Group Inc., general partner of Washington Prime Group, L.P. | |||
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | October 24, 2019 | /s/ Louis G. Conforti | |
Louis G. Conforti Chief Executive Officer and Director | |||
Date: | October 24, 2019 | /s/ Mark E. Yale | |
Mark E. Yale Executive Vice President and Chief Financial Officer | |||
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
Date: | October 24, 2019 | /s/ Louis G. Conforti | |
Louis G. Conforti Chief Executive Officer and Director of Washington Prime Group Inc., general partner of Washington Prime Group, L.P. | |||
Date: | October 24, 2019 | /s/ Mark E. Yale | |
Mark E. Yale Executive Vice President and Chief Financial Officer of Washington Prime Group Inc., general partner of Washington Prime Group, L.P. | |||
Investment in Real Estate (2019 Disposition) (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sep. 27, 2019
USD ($)
outparcel
|
Sep. 16, 2019
USD ($)
outparcel
|
Aug. 29, 2019
USD ($)
outparcel
|
Aug. 01, 2019
USD ($)
outparcel
|
Jun. 28, 2019
USD ($)
outparcel
|
Apr. 03, 2019
USD ($)
outparcel
|
Feb. 11, 2019
USD ($)
outparcel
|
Jan. 18, 2019
USD ($)
outparcel
|
Jul. 27, 2018
USD ($)
outparcel
|
Jun. 29, 2018
USD ($)
outparcel
|
Jan. 12, 2018
USD ($)
outparcel
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2019
USD ($)
outparcel
|
Sep. 30, 2018
USD ($)
outparcel
|
Dec. 31, 2020
USD ($)
|
|
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
| Real estate deal amount remaining to close | $ 13,000 | $ 13,000 | ||||||||||||||
| Gain on disposition of interests in properties, net | 9,825 | $ 3,864 | $ 26,056 | $ 20,108 | ||||||||||||
| Restaurant Outparcels | ||||||||||||||||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
| Parcels Sold | outparcel | 2 | 1 | 1 | 1 | 3 | 1 | 1 | 8 | 2 | 5 | 10 | 18 | 17 | |||
| Purchase Price | $ 4,412 | $ 3,205 | $ 3,397 | $ 1,210 | $ 3,050 | $ 2,048 | $ 2,766 | $ 9,435 | $ 4,607 | $ 9,503 | $ 13,692 | $ 29,523 | $ 27,802 | $ 29,523 | $ 27,802 | |
| Sales Proceeds | $ 4,377 | $ 3,118 | $ 3,394 | $ 1,199 | $ 3,031 | $ 2,016 | $ 2,720 | $ 9,364 | $ 4,530 | $ 9,423 | $ 13,506 | 29,219 | $ 27,459 | |||
| Undeveloped Land Parcels | ||||||||||||||||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
| Sales Proceeds | 4,000 | |||||||||||||||
| Aggregate sales price | $ 4,400 | |||||||||||||||
| Subsequent Event | Four Corners | ||||||||||||||||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
| Real estate deal amount remaining to close | $ 33,100 | |||||||||||||||
(Loss) Earnings Per Common Share/Unit (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Earnings Per Share/Unit | The following table sets forth the computation of WPG Inc.'s basic and diluted (loss) earnings per common share:
The following table sets forth the computation of WPG L.P.'s basic and diluted (loss) earnings per common unit:
|
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Summary of Significant Accounting Policies (Changes to Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
|---|---|---|---|
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
| Deferred costs and other assets | $ 165,352 | $ 183,547 | $ 169,135 |
| Accounts payable, accrued expenses, intangibles, and deferred revenues | $ 241,569 | 268,274 | $ 253,862 |
| Accounting Standards Update 2016-02 | |||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
| Deferred costs and other assets | 14,412 | ||
| Accounts payable, accrued expenses, intangibles, and deferred revenues | $ 14,412 |
Derivative Financial Instruments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Financial Instruments | Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future uncertain cash amounts, the value of which are determined by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash payments related to the Company's borrowings. Cash Flow Hedges of Interest Rate Risk The Company's objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives the Company primarily uses interest rate swaps or caps as part of its interest rate risk management strategy. Interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company may also enter into forward starting swaps or treasury lock agreements to set the effective interest rate on a planned fixed-rate financing. In a forward starting swap or treasury lock agreement that the Company cash settles in anticipation of a fixed rate financing or refinancing, the Company will receive or pay an amount equal to the present value of future cash flow payments based on the difference between the contract rate and market rate on the settlement date. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in other comprehensive income ("OCI") or other comprehensive loss (“OCL”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Net realized gains or losses resulting from derivatives that were settled in conjunction with planned fixed-rate financings or refinancings continue to be included in accumulated other comprehensive income ("AOCI") during the term of the hedged debt transaction. Amounts reported in AOCI relate to derivatives that will be reclassified to interest expense as interest payments are made on the Company's variable-rate debt. Realized gains or losses on settled derivative instruments included in AOCI are recognized as an adjustment to income over the term of the hedged debt transaction. During the next twelve months, the Company estimates that an additional $3.3 million will be reclassified as an increase to interest expense. On March 29, 2019, the Company entered into one two-year swap, totaling $52.0 million with an effective date of April 1, 2019, pursuant to the terms of the extension option executed on the mortgage note payable loan at Town Center at Aurora. As of September 30, 2019, the Company had 11 outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk with a current notional value of $641.5 million. The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated balance sheets as of September 30, 2019 and December 31, 2018:
The asset derivative instruments were reported at their fair value of $0 and $9,306 in deferred costs and other assets at September 30, 2019 and December 31, 2018, respectively, with a corresponding adjustment to OCI for the unrealized gains and losses (net of noncontrolling interest allocation). The liability derivative instruments were reported at their fair value of $9,378 and $1,913 at September 30, 2019 and December 31, 2018, respectively, with a corresponding adjustment to OCL for the unrealized gains and losses (net of noncontrolling interest allocation). Over time, the unrealized gains and losses held in AOCI will be reclassified to earnings. This reclassification will correlate with the recognition of the hedged interest payments in earnings. The table below presents the effect of the Company's derivative financial instruments on the consolidated statements of comprehensive (loss) income for the three and nine months ended September 30, 2019 and 2018:
The table below presents the effect of the Company's derivative financial instruments on the consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018:
Credit Risk-Related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision that if the Company either defaults or is capable of being declared in default on any of its consolidated indebtedness, then the Company could also be declared in default on its derivative obligations. The Company has agreements with its derivative counterparties that incorporate the loan covenant provisions of the Company's indebtedness with a lender affiliate of the derivative counterparty. Failure to comply with the loan covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the agreement. As of September 30, 2019, the fair value of the derivatives in a net liability position, plus accrued interest but excluding any adjustment for nonperformance risk, related to these agreements was $9,378. As of September 30, 2019, the Company has not posted any collateral related to these agreements. The Company is not in default with any of these provisions as of September 30, 2019. If the Company had breached any of these provisions at September 30, 2019, it would have been required to settle its obligation under these agreements at their termination value of $9,378. Fair Value Considerations Currently, the Company uses interest rate swaps and caps to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities. Based on these inputs the Company has determined that its interest rate swap and cap valuations are classified within Level 2 of the fair value hierarchy. To comply with the provisions of Topic 820, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2019 and December 31, 2018, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. The tables below presents the Company’s net assets and (liabilities) measured at fair value as of September 30, 2019 and December 31, 2018 aggregated by the level in the fair value hierarchy within which those measurements fall:
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Summary of Significant Accounting Policies |
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| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Fair Value Measurements The Company measures and discloses its fair value measurements in accordance with Accounting Standards Codification ("ASC") Topic 820 - “Fair Value Measurement” (“Topic 820”). The fair value hierarchy, as defined by Topic 820, contains three levels of inputs that may be used to measure fair value as follows:
The asset or liability's fair value within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Under Topic 820, fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability in an orderly transaction at the measurement date and under current market conditions. Use of Estimates We prepared the accompanying consolidated financial statements in accordance with GAAP. This requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reported period. Our actual results could differ from these estimates. Segment Disclosure Our primary business is the ownership, development and management of retail real estate. We have aggregated our operations, including enclosed retail properties and open air properties, into one reportable segment because they have similar economic characteristics and we provide similar products and services to similar types of, and in many cases, the same tenants. New Accounting Pronouncements Adoption of New Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)." This new guidance, including related ASUs that were subsequently issued, was effective January 1, 2019 and required lessees to recognize a lease liability and right of use ("ROU") asset, measured as the present value of lease payments, for both operating and financing leases with a term greater than 12 months. Additionally, the new standard made targeted changes to lessor accounting. The new leases standard required a modified retrospective transition approach for all leases existing at, or entered into after, January 1, 2017, with an option to use certain transition relief which allowed an entity to account for the impact of the adoption ASU 2016-02 with a cumulative adjustment to retained earnings, if necessary, on January 1, 2019, rather than January 1, 2017, eliminating the need to restate amounts presented prior to January 1, 2019. The Company adopted the new standard on January 1, 2019 and applied the new guidance utilizing the optional transition method noted above. The Company elected to use the "package of practical expedients," which allowed the Company not to reassess under the new standard prior conclusions about lease identification, lease classification, and initial direct costs. The Company did not make any adjustments to the opening balance of retained earnings upon adoption of the new standard given the nature of the impacts and other transition practical expedients elected by the Company. Upon adoption, the Company recognized a lease liability and corresponding ROU asset of approximately $14.4 million for the four material ground leases, two material office leases, and one material garage lease with a term of more than 12 months. For leases with a term of 12 months or less, the Company made an accounting policy election by underlying asset to not recognize lease liabilities and ROU assets. Additionally, the Company excluded certain office equipment leases due to materiality. All of these leases were classified as operating leases under legacy GAAP and the current classification was carried forward under ASU 2016-02. See "Note 10 - Commitments and Contingencies" for additional details. From a lessor perspective, the new guidance remained mostly similar to legacy GAAP as the Company elected the practical expedient to not separate non-lease components from lease components. This election resulted in a change on the Company's consolidated statements of operations and comprehensive (loss) income as the Company no longer presents minimum rents, overage rents, and tenant reimbursements as separate line items because the Company now accounts for these line items as a single combined lease component, rental income, on the basis of the lease component being the predominant component of the contract. As such, non-lease components, including common-area ("CAM") revenues, are now combined with lease components and are recognized on a straight-line basis to the extent the non-lease components are fixed. Additionally, ASU 2016-02 required the Company to recognize a change, after the commencement date, in their assessment of whether the collectibility of an operating lease receivable as probable as an adjustment to rental income rather than as a provision for credit losses. This requirement resulted in a change on the Company's consolidated statements of operations and comprehensive (loss) income as the Company no longer presents provision for credit losses as a separate line item and the adjustment is now recorded as a reduction to rental income. ASU 2016-02 also introduced certain changes to the lease classification rules for lessors. Accordingly, some leases may be classified as sales-type leases in the future. This change is not expected to have a material impact on the Company's financial statements. Finally, ASU 2016-02 disallowed the capitalization of internal leasing costs and legal costs, unless said costs are incremental to obtaining the lease contract, resulting in an increase in the Company's general and administrative expenses. For the three and nine months ended September 30, 2018, we capitalized approximately $4.3 million and $13.0 million of internal legal and leasing costs, respectively, that would no longer qualify for capitalization under the new standard. The Company elected to use the practical expedient in transition to not re-evaluate costs that were previously capitalized. The cumulative effect of the change to our consolidated January 1, 2019 balance sheet for the adoption of ASU 2016-02 was as follows:
New Standards Issued But Not Yet Adopted In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurements (ASC 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurements." ASU 2018-13 eliminates certain disclosure requirements for all entities, requires public entities to disclose certain new information, and modifies some disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact this ASU will have, if any, on our financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses," which introduced new guidance for an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. Instruments in scope include loans, held-to-maturity debt securities, and net investments in leases as well as reinsurance and trade receivables. In November 2018, the FASB issued ASU 2018-19, which clarifies that operating lease receivables are outside the scope of the new standard. This standard will be effective for fiscal years beginning after December 15, 2019. We are currently evaluating the impact this ASU will have, if any, on our financial statements. Reclassifications Reclassifications were made to conform prior periods to our presentation of the consolidated statements of operations and comprehensive (loss) income due to the impact of adopting ASU 2016-02. Amounts previously disclosed as minimum rent, tenant reimbursements, and overage rent during the three and nine months ended September 30, 2018 are now included in rental income and will no longer be presented as separate line items. Additionally, termination income of $0.2 million and $2.2 million, which was previously disclosed in other income, and provision for credit losses of $0.5 million and $4.5 million, which was previously disclosed as a separate line item during the three and nine months ended September 30, 2018, respectively, were also reclassified to rental income for comparability of prior periods to the current period. Reconciliation of Cash, Cash Equivalents, and Restricted Cash The following is a summary of our beginning and ending cash, cash equivalents and restricted cash totals as presented in our statements of cash flows for the nine months ended September 30, 2019 and 2018:
Restricted cash primarily relates to cash held in escrow for payment of real estate taxes and property reserves for maintenance, expansion or leasehold improvements as required by our mortgage loans. Restricted cash is included in "Deferred costs and other assets" in the accompanying balance sheets as of September 30, 2019 and December 31, 2018.
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Derivative Financial Instruments (Liabilities Measured on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Derivative [Line Items] | ||
| Derivative instruments, net | $ (9,378) | $ 7,393 |
| Quoted Prices in Active Markets for Identical Liabilities (Level 1) | ||
| Derivative [Line Items] | ||
| Derivative instruments, net | 0 | 0 |
| Significant Other Observable Inputs (Level 2) | ||
| Derivative [Line Items] | ||
| Derivative instruments, net | (9,378) | 7,393 |
| Significant Unobservable Inputs (Level 3) | ||
| Derivative [Line Items] | ||
| Derivative instruments, net | $ 0 | $ 0 |
Indebtedness (Book Value and Fair Value of Debt) (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Book value of debt | $ 1,170,129 | $ 983,269 |
| Fixed Rate Mortgages | ||
| Debt Instrument [Line Items] | ||
| Book value of debt | 1,106,508 | 915,276 |
| Fair value of debt | $ 1,130,082 | $ 928,129 |
| Fixed Rate Mortgages | Weighted Average | ||
| Debt Instrument [Line Items] | ||
| Weighted average discount rates assumed in calculation of fair value for debt | 4.21% | 4.57% |
| Fixed Rate Unsecured Debt | ||
| Debt Instrument [Line Items] | ||
| Book value of debt | $ 1,560,900 | $ 1,590,000 |
| Fair value of debt | $ 1,553,490 | $ 1,485,672 |
| Fixed Rate Unsecured Debt | Weighted Average | ||
| Debt Instrument [Line Items] | ||
| Weighted average discount rates assumed in calculation of fair value for debt | 5.29% | 5.62% |
Unaudited Consolidated Statement of Equity - LP (Parentheticals) - $ / shares |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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| Statement of Partners' Capital [Abstract] | ||||
| Distribution on common units (usd per unit) | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
Investment in Real Estate (Impairment) (Details) $ in Millions |
3 Months Ended | 9 Months Ended |
|---|---|---|
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Sep. 30, 2019
USD ($)
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Sep. 30, 2019
USD ($)
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| Chautauqua Mall | ||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
| Asset impairment charges | $ 28.9 | $ 28.9 |
| Valuation Technique, Discounted Cash Flow | Measurement Input, Discount Rate | ||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
| Measurement input | 0.185 | 0.185 |
| Valuation Technique, Discounted Cash Flow | Measurement Input, Cap Rate | ||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
| Measurement input | 0.155 | 0.155 |
Indebtedness (Mortgage Indebtedness) (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Carrying value of mortgage loans | $ 1,170,129 | $ 983,269 |
| Mortgages | ||
| Debt Instrument [Line Items] | ||
| Face amount of mortgage loans | 1,171,508 | 980,276 |
| Fair value adjustments, net | 4,038 | 5,764 |
| Debt issuance cost, net | (5,417) | (2,771) |
| Carrying value of mortgage loans | $ 1,170,129 | $ 983,269 |
Investment in Real Estate (Tables) |
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| Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of fair value allocation for acquisitions finalized | The following table summarizes the fair value allocation for the acquisitions, which was finalized during the three months ended June 30, 2018:
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| Disposal Groups, Including Discontinued Operations | The following table summarizes the key terms of each of the closings with Four Corners that occurred during the nine months ended September 30, 2018:
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Loss) Earnings Per Common Share/Unit | (Loss) Earnings Per Common Share/Unit WPG Inc. (Loss) Earnings Per Common Share We determine WPG Inc.'s basic (loss) earnings per common share based on the weighted average number of shares of common stock outstanding during the period and we consider any participating securities for purposes of applying the two-class method. We determine WPG Inc.'s diluted (loss) earnings per share based on the weighted average number of shares of common stock outstanding combined with the incremental weighted average shares that would have been outstanding assuming all potentially dilutive securities were converted into common shares at the earliest date possible. The following table sets forth the computation of WPG Inc.'s basic and diluted (loss) earnings per common share:
For the three and nine months ended September 30, 2019 and 2018, additional potentially dilutive securities include contingently-issuable outstanding stock options, restricted stock units, and performance based components of annual or special arrangement awards. For the three and nine months ended September 30, 2019, the potential dilutive effect of 613,297 contingently-issuable outstanding stock options, 538,700 restricted stock units, and 1,765,308 performance based components of annual or special arrangement awards were excluded as their inclusion would be anti-dilutive. We accrue distributions when they are declared. WPG L.P. (Loss) Earnings Per Common Unit We determine WPG L.P.'s basic (loss) earnings per common unit based on the weighted average number of common units outstanding during the period and we consider any participating securities for purposes of applying the two-class method. We determine WPG L.P.'s diluted (loss) earnings per unit based on the weighted average number of common units outstanding combined with the incremental weighted average units that would have been outstanding assuming all potentially dilutive securities were converted into common units at the earliest date possible. The following table sets forth the computation of WPG L.P.'s basic and diluted (loss) earnings per common unit:
For the three and nine months ended September 30, 2019 and 2018, additional potentially dilutive securities include contingently-issuable units related to WPG Inc.'s outstanding stock options, restricted stock units, and WPG Inc.'s performance based components of annual or special arrangement awards. For the three and nine months ended September 30, 2019, the potential dilutive effect of 613,297 contingently-issuable outstanding stock options, 538,700 restricted stock units, and 1,765,308 performance based components of annual awards were excluded as their inclusion would be anti-dilutive. We accrue distributions when they are declared.
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Rental Income (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Lease, Lease Income | The following table summarizes our rental income for the three and nine months ended September 30, 2019 and 2018:
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| Lessor, Operating Lease, Payments to be Received, Maturity | Future payments to be received under non-cancelable operating leases for each of the next five years and thereafter, excluding variable payments of tenant reimbursements, percentage or overage rents, and lease termination payments as of September 30, 2019 are as follows:
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Investment in Real Estate (2018 Dispositions) (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sep. 27, 2019
USD ($)
outparcel
|
Sep. 16, 2019
USD ($)
outparcel
|
Aug. 29, 2019
USD ($)
outparcel
|
Aug. 01, 2019
USD ($)
outparcel
|
Jun. 28, 2019
USD ($)
outparcel
|
Apr. 03, 2019
USD ($)
outparcel
|
Feb. 11, 2019
USD ($)
outparcel
|
Jan. 18, 2019
USD ($)
outparcel
|
Jul. 27, 2018
USD ($)
outparcel
|
Jun. 29, 2018
USD ($)
outparcel
|
Jan. 12, 2018
USD ($)
outparcel
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2019
USD ($)
outparcel
|
Sep. 30, 2018
USD ($)
outparcel
|
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| Restaurant Outparcels | ||||||||||||||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
| Parcels Sold | outparcel | 2 | 1 | 1 | 1 | 3 | 1 | 1 | 8 | 2 | 5 | 10 | 18 | 17 | |
| Purchase Price | $ 4,412 | $ 3,205 | $ 3,397 | $ 1,210 | $ 3,050 | $ 2,048 | $ 2,766 | $ 9,435 | $ 4,607 | $ 9,503 | $ 13,692 | $ 27,802 | $ 29,523 | $ 27,802 |
| Sales Proceeds | $ 4,377 | $ 3,118 | $ 3,394 | $ 1,199 | $ 3,031 | $ 2,016 | $ 2,720 | $ 9,364 | $ 4,530 | $ 9,423 | $ 13,506 | $ 29,219 | 27,459 | |
| Four Corners | ||||||||||||||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
| Gain (loss) on disposition of assets | $ 3,900 | $ 20,100 | ||||||||||||
Unaudited Consolidated Statement of Equity - LP - USD ($) $ in Thousands |
Total |
Washington Prime Group, L.P. |
Washington Prime Group, L.P.
Partners' Equity
|
Washington Prime Group, L.P.
Non- Controlling Interests
|
Washington Prime Group, L.P.
Redeemable Non-Controlling Interests
|
Washington Prime Group, L.P.
General Partner
Partners' Equity
|
Washington Prime Group, L.P.
General Partner Preferred Equity
Partners' Equity
|
Washington Prime Group, L.P.
General Partner Common Equity
Partners' Equity
|
Washington Prime Group, L.P.
Limited Partners
Partners' Equity
|
|---|---|---|---|---|---|---|---|---|---|
| Beginning balance at Dec. 31, 2017 | $ 1,267,122 | $ 1,266,064 | $ 1,058 | $ 3,265 | $ 1,099,404 | $ 202,576 | $ 896,828 | $ 166,660 | |
| Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
| Redemption of limited partner units | $ (25) | (25) | (25) | (25) | |||||
| Other | (96) | (96) | (96) | (96) | |||||
| Equity-based compensation | 6,311 | 6,311 | 5,635 | 5,635 | 676 | ||||
| Adjustments to limited partners' interests | 310 | 310 | (310) | ||||||
| Distributions on common units ($0.75 per common unit) | (166,905) | (166,900) | (5) | (140,832) | (140,832) | (26,068) | |||
| Distributions declared on preferred units | (10,524) | (10,524) | (180) | (10,524) | (10,524) | ||||
| Other comprehensive income | 8,290 | 8,290 | 8,290 | 6,980 | 6,980 | 1,310 | |||
| Net (loss) income | 39,639 | 39,639 | 39,639 | 0 | 180 | 35,089 | 10,524 | 24,565 | 4,550 |
| Ending balance at Sep. 30, 2018 | 1,146,286 | 1,145,233 | 1,053 | 3,265 | 998,051 | 202,576 | 795,475 | 147,182 | |
| Beginning balance at Jun. 30, 2018 | 1,196,876 | 1,195,823 | 1,053 | 3,265 | 1,040,737 | 202,576 | 838,161 | 155,086 | |
| Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
| Other | (7) | (7) | (7) | (7) | |||||
| Equity-based compensation | 2,050 | 2,050 | 1,864 | 1,864 | 186 | ||||
| Adjustments to limited partners' interests | (125) | (125) | 125 | ||||||
| Distributions on common units ($0.75 per common unit) | (55,651) | (55,651) | 0 | (46,962) | (46,962) | (8,689) | |||
| Distributions declared on preferred units | (3,508) | (3,508) | (60) | (3,508) | (3,508) | ||||
| Other comprehensive income | 2,471 | 2,471 | 2,471 | 2,081 | 2,081 | 390 | |||
| Net (loss) income | 4,055 | 4,055 | 4,055 | 0 | 60 | 3,971 | 3,508 | 463 | 84 |
| Ending balance at Sep. 30, 2018 | 1,146,286 | 1,145,233 | 1,053 | 3,265 | 998,051 | 202,576 | 795,475 | 147,182 | |
| Beginning balance at Dec. 31, 2018 | 1,148,271 | 1,147,203 | 1,068 | 3,265 | 999,710 | 202,576 | 797,134 | 147,493 | |
| Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
| Redemption of limited partner units | (143) | (143) | (143) | (143) | |||||
| Other | (23) | (23) | (23) | (23) | |||||
| Exercise of stock options | 1 | 1 | 1 | 1 | 1 | ||||
| Equity-based compensation | 5,922 | 5,922 | 5,885 | 5,885 | 37 | ||||
| Adjustments to limited partners' interests | (350) | (350) | 350 | ||||||
| Distributions on common units ($0.75 per common unit) | (167,635) | (167,573) | (62) | (141,522) | (141,522) | (26,051) | |||
| Distributions declared on preferred units | (10,524) | (10,524) | (180) | (10,524) | (10,524) | ||||
| Other comprehensive income | (16,858) | (16,858) | (16,858) | (14,248) | (14,248) | (2,610) | |||
| Net (loss) income | (21,288) | (21,288) | (21,288) | 180 | (16,334) | 10,524 | (26,858) | (4,954) | |
| Ending balance at Sep. 30, 2019 | 937,723 | 936,717 | 1,006 | 3,265 | 822,595 | 202,576 | 620,019 | 114,122 | |
| Beginning balance at Jun. 30, 2019 | 999,161 | 998,155 | 1,006 | 3,265 | 874,371 | 202,576 | 671,795 | 123,784 | |
| Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
| Redemption of limited partner units | (124) | (124) | (124) | (124) | |||||
| Other | (9) | (9) | (9) | (9) | |||||
| Equity-based compensation | 2,142 | 2,142 | 2,142 | 2,142 | |||||
| Adjustments to limited partners' interests | (300) | (300) | 300 | ||||||
| Distributions on common units ($0.75 per common unit) | (55,951) | (55,951) | (47,272) | (47,272) | (8,679) | ||||
| Distributions declared on preferred units | (3,508) | (3,508) | (60) | (3,508) | (3,508) | ||||
| Other comprehensive income | (2,263) | (2,263) | (2,263) | (1,916) | (1,916) | (347) | |||
| Net (loss) income | $ (1,725) | (1,725) | (1,725) | 60 | (913) | 3,508 | (4,421) | (812) | |
| Ending balance at Sep. 30, 2019 | $ 937,723 | $ 936,717 | $ 1,006 | $ 3,265 | $ 822,595 | $ 202,576 | $ 620,019 | $ 114,122 |
Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of issuance of the 2019 and 2018 Annual Long-Term Incentive Awards | The following table summarizes the issuance of the 2019 Annual Long-Term Incentive Awards and 2018 Annual Long-Term Incentive Awards, respectively:
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Investment in Unconsolidated Entities, at Equity (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment in Unconsolidated Entities, at Equity | The following table presents the combined statements of operations for the O'Connor Joint Venture I, the O'Connor Joint Venture II, the Seminole Joint Venture, and an indirect 12.5% ownership interest in certain other real estate for the three and nine months ended September 30, 2019 and 2018:
The following table presents the combined balance sheets for the O'Connor Joint Venture I, O'Connor Joint Venture II, the Seminole Joint Venture, and an indirect 12.5% ownership interest in certain other real estate as of September 30, 2019 and December 31, 2018:
(3) Includes $418,105 and $433,207 of investment in and advances to unconsolidated entities, at equity as of September 30, 2019 and December 31, 2018, respectively, and $15,421 of cash distributions and losses in unconsolidated entities, at equity as of September 30, 2019 and December 31, 2018.
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Subsequent Events |
9 Months Ended |
|---|---|
Sep. 30, 2019 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events On October 10, 2019, WPG L.P. closed on the sale and leaseback of four assets (collectively, the "Properties") pursuant to the purchase and sale agreement executed on July 24, 2019 between WPG L.P. and Mall Ground Portfolio, LLC, an affiliate of Perennial Investment & Advisors, LLC and Kawa Capital Partners ("the Ground Lessor"). The Properties are: Edison Mall, located in Fort Myers, Florida; Great Lakes Mall, located in Mentor, Ohio; Irving Mall, located in Irving, Texas; and Jefferson Valley Mall, located in Yorktown Heights, New York. Under the agreement, the Ground Lessor acquired a fee interest in the land at the Properties for a price of approximately $98.9 million. Concurrently, WPG L.P. entered into a new 99-year master ground lease for the leasehold interest at the Properties. The master ground lease includes fixed annual payments to the Ground Lessor at an initial annualized rate of 7.4% and contains annual rent escalators over the aforementioned term. The agreement includes an option for WPG L.P. to repurchase the fee interest in the land at a fixed price in year 30 of the master ground lease. If WPG L.P. does not exercise this option, then the Ground Lessor will retain the fee interest in the land, and the fee interest in the improvements and development rights will transfer to the Ground Lessor at the end of the 99-year ground lease term. WPG L.P. received approximately $42.4 million in proceeds upon closing, net of $55.0 million in bridge financing provided by WPG L.P. to the Ground Lessor and closing costs. The bridge financing has a maximum five-year balloon term, which can be pre-paid without penalty, and carries an interest rate of 4.0%. The net proceeds were generally used to fund ongoing redevelopment efforts and for general corporate purposes. WPG L.P. continues to own a fee interest in the improvements and development rights through the term of the aforementioned master ground lease and continues to manage, lease and develop the Properties and maintains full control over the leasehold interest and in the land and fee interest in the improvements and development rights at the respective Properties. For accounting purposes, the repurchase option will preclude WPG L.P. from meeting the criteria for sales recognition. As such, the gross proceeds received will be accounted for as a financial liability during the term of the option.
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Commitments and Contingencies (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments due under these leases for each of the next five years and thereafter, excluding applicable extension options, as of September 30, 2019 are as follows:
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Investment in Real Estate (Summary of Purchase Price Allocation) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
|---|---|---|---|
Jun. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
| Business Acquisition [Line Items] | |||
| Net cash paid for acquisitions | $ 0 | $ 80,108 | |
| Glimcher Realty Trust | |||
| Business Acquisition [Line Items] | |||
| Investment properties | $ 72,647 | ||
| Investment in and advances to unconsolidated entities, at equity | 5,543 | ||
| Deferred costs and other assets | 10,311 | ||
| Accounts payable, accrued expenses, intangibles, and deferred revenue | (8,393) | ||
| Net cash paid for acquisitions | $ 80,108 | ||
Rental Income |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rental Income | Rental Income We receive rental income from the leasing of retail and other space under operating leases, as we retain substantially all of the risks and benefits of ownership of the investment properties. The majority of these leases contain extension options, typically at the lessee's election, and/or early termination provisions. Further, our leases do not contain any provisions that would allow the lessee to purchase the underlying assets throughout the lease term. In most cases, consideration received typically includes a fixed minimum rent component, reimbursement of a fixed portion of our property operating expenses, including utility, security, janitorial, landscaping, food court and other administrative expenses (also known as CAM), and reimbursement of lessor costs such as real estate taxes and insurance, computed based upon a formula in accordance with the lease terms. When not reimbursed by the fixed CAM component, CAM expense reimbursements and lessor costs are based on the tenant's proportionate share of the allocable operating expenses and CAM capital expenditures for the property. We accrue reimbursements from tenants for recoverable portions of all these expenses as revenue in the period the applicable expenditures are incurred. We recognize differences between estimated recoveries and the final billed amounts in the subsequent year. Additionally, a large number of our tenants are also required to pay overage rents based on sales during the applicable lease year over a base amount stated in the lease agreement. We recognize overage rents only when each tenant's sales exceed the applicable sales threshold as defined in their lease. We also collect lease termination income from tenants to allow for the tenant to vacate their space prior to their scheduled lease termination date. We recognize lease termination income in the period when a termination agreement is signed, collectability is assured, and we are no longer obligated to provide space to the tenant. In the event that a tenant is in bankruptcy when the termination agreement is signed, termination fee income is deferred and recognized when, and if, it is received. We record an adjustment to rental income in the period there is a change in our assessment of whether the collectibility of an operating lease receivable is probable. We have elected the practical expedient in ASU 2016-02 to not separate non-lease components from lease components as our underlying leases qualify as operating leases and the timing and pattern of transfer of the lease and non-lease components are the same. We note that the predominant component of our leases is the lease component and thus account for the combined lease and non-lease component of the non-cancelable lease term on a straight-line basis in accordance with ASC 842. Rental income also includes accretion related to above-market and below-market lease intangibles related to the acquisition of operating properties. We amortize any tenant inducements as a reduction of rental income utilizing the straight-line method over the term of the related lease or occupancy term of the tenant, if shorter. The following table summarizes our rental income for the three and nine months ended September 30, 2019 and 2018:
Future payments to be received under non-cancelable operating leases for each of the next five years and thereafter, excluding variable payments of tenant reimbursements, percentage or overage rents, and lease termination payments as of September 30, 2019 are as follows:
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Investment in Real Estate |
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| Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment in Real Estate | Investment in Real Estate 2018 Acquisitions On April 11, 2018, we acquired, through a sale-leaseback transaction, four Sears department stores and adjacent Sears Auto Centers at Longview Mall, located in Longview, Texas; Polaris Fashion Place®, located in Columbus, Ohio; Southern Hills Mall, located in Sioux City, Iowa; and Town Center at Aurora, located in Aurora, Colorado. The purchase price was approximately $28.5 million and was funded by a combination of $13.4 million from our Facility (as defined in Note 6 - "Indebtedness"), $9.7 million from the first tranche of the Four Corners transaction, as discussed below, and $5.4 million from O'Connor Mall Partners, L.P. ("O'Connor") related to their pro-rata share of the joint venture that owns Polaris Fashion Place® (see Note 5 - "Investment in Unconsolidated Entities, at Equity"). On April 24, 2018, the Company closed on the acquisition of Southgate Mall, located in Missoula, Montana, for $58.0 million, which was funded from our Facility (as defined in Note 6 - "Indebtedness"). The following table summarizes the fair value allocation for the acquisitions, which was finalized during the three months ended June 30, 2018:
Intangibles of $10.3 million, which relate primarily to above-market leases and lease in place values, are included in “Deferred costs and other assets” as of the respective acquisition dates. The initial weighted average useful life of the intangible assets was 11.5 years. Intangibles of $4.9 million, which relate primarily to below-market leases, are included in “Accounts payable, accrued expense, intangibles, and deferred revenue” as of the respective acquisition dates. The initial weighted average useful life of the intangible liabilities was 9.6 years. We capitalized $0.6 million of transaction costs as the transactions were accounted for as asset acquisitions. 2019 Dispositions We are party to two separate purchase and sale agreements to sell certain outparcels to FCPT Acquisitions, LLC ("Four Corners"). The following table summarizes the key terms of each of the closings that occurred during the nine months ended September 30, 2019:
The Company expects to close on most of the approximately $13.0 million of remaining outparcels from the first purchase and sale agreement during 2019, subject to due diligence and closing conditions, and the Company expects to close on the majority of the remaining $33.1 million from the second purchase and sale agreement in 2020, subject to due diligence and closing conditions. Additionally, during the nine months ended September 30, 2019, the Company sold certain undeveloped land parcels for an aggregate purchase price of $4.4 million, receiving net proceeds of $4.0 million. The net proceeds from the disposition activities were generally used to fund ongoing redevelopment efforts and for general corporate purposes. In connection with the 2019 disposition activities, the Company recorded gains of $9.8 million and $26.1 million for the three and nine months ended September 30, 2019, respectively, which are included in gain on disposition of interests in properties, net in the accompanying consolidated statements of operations and comprehensive (loss) income. 2018 Dispositions The following table summarizes the key terms of each of the closings with Four Corners that occurred during the nine months ended September 30, 2018:
The net proceeds were used to fund a portion of the acquisition of the Sears parcels on April 11, 2018, as discussed above, to fund ongoing redevelopment efforts and for general corporate purposes. In connection with the 2018 disposition activities, the Company recorded net gains of $3.9 million and $20.1 million and for the three and nine months ended September 30, 2018, respectively, which is included in gain on disposition of interests in properties, net in the accompanying consolidated statements of operations and comprehensive (loss) income. Impairment During the three and nine months ended September 30, 2019, and in connection with the preparation of the financial statements included in this report, we recorded an impairment charge of approximately $28.9 million related to Chautauqua Mall, located in Lakewood, New York, Matteson Plaza, located in Matteson, Illinois, and New Towne Mall, located in New Philadelphia, Ohio. In the case of Chautauqua Mall and New Towne Mall, the impairment charge was attributed to declines in the estimated undiscounted cash flows which resulted in the carrying value of each property not being recoverable. The fair value of each property was based on the respective discounted estimated future cash flows of each property, using a discount rate of 18.5% and a terminal capitalization rate of 15.5%, which were determined using management's assessment of the property operating performance and general market conditions (Level 3 inputs). As it relates to Matteson Plaza, the impairment charge was due to the change in facts and circumstances when we decided to hold the asset for a shorter period which resulted in the carrying value not being recoverable from the projected cash flows. The fair value was based on a recently negotiated purchase and sale agreement with a potential buyer (Level 1 input). Except as described above, the Company recorded no additional impairment charges during the three and nine months ended September 30, 2019.
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Commitments and Contingencies (Concentration Risk) (Details) |
9 Months Ended |
|---|---|
Sep. 30, 2019 | |
| Customer Concentration Risk | Sales Revenue, Net | |
| Concentration Risk [Line Items] | |
| Concentration risk | 5.00% |
Rental Income (Operating Lease, Lease Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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| Leases [Abstract] | ||||
| Operating lease payments, fixed | $ 135,046 | $ 150,785 | $ 417,395 | $ 456,917 |
| Operating lease payments, variable | 19,220 | 19,313 | 53,679 | 54,193 |
| Amortization of straight-line rent, inducements, and rent abatements | 1,227 | 996 | 3,499 | 2,677 |
| Net amortization/accretion of above and below-market leases | 975 | 3,852 | 5,425 | 7,976 |
| Change in estimate of collectibility of rental income | (1,857) | (497) | (5,884) | (4,454) |
| Total rental income | $ 154,611 | $ 174,449 | $ 474,114 | $ 517,309 |
Derivative Financial Instruments (Narrative) (Details) $ in Thousands |
9 Months Ended | 12 Months Ended | |
|---|---|---|---|
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Mar. 29, 2019
USD ($)
derivative
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Sep. 30, 2019
USD ($)
derivative
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Dec. 31, 2018
USD ($)
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| Derivative Instruments, Gain (Loss) [Line Items] | |||
| Amount estimated to be reclassified as an increase to interest expense | $ 3,300 | ||
| Amount of Gain Reclassified from AOCI into Income | $ 0 | $ 9,306 | |
| Interest Rate Swap | |||
| Derivative Instruments, Gain (Loss) [Line Items] | |||
| Term of derivative | 2 years | ||
| Number of derivatives entered | derivative | 1 | ||
| Number of derivatives outstanding | derivative | 11 | ||
| Notional value of interest rate risk | $ 52,000 | $ 641,500 | |
| Designated as Hedging Instruments | Accounts payable, accrued expenses, intangibles, and deferred revenue | Interest rate products | |||
| Derivative Instruments, Gain (Loss) [Line Items] | |||
| Fair value of liability derivative instruments | $ 9,378 | $ 1,913 |
Unaudited Consolidated Statement of Equity - USD ($) $ in Thousands |
Total |
Total Stockholders' Equity |
Preferred Stock
Preferred Series H
|
Preferred Stock
Preferred Series I
|
Common Stock |
Capital in Excess of Par Value |
Accumulated Deficit |
Accumulated Other Comprehensive (Loss) Income |
Redeemable Non-Controlling Interests |
Non- Controlling Interests |
|---|---|---|---|---|---|---|---|---|---|---|
| Beginning balance at Dec. 31, 2017 | $ 1,267,122 | $ 1,099,404 | $ 104,251 | $ 98,325 | $ 19 | $ 1,240,483 | $ (350,594) | $ 6,920 | $ 3,265 | $ 167,718 |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
| Redemption of limited partner units | (25) | (25) | ||||||||
| Other | (96) | (96) | (96) | |||||||
| Equity-based compensation | 6,311 | 5,635 | 5,635 | 676 | ||||||
| Adjustments to noncontrolling interests | 310 | 310 | (310) | |||||||
| Distributions on common shares/units | (166,905) | (140,832) | (140,832) | (26,073) | ||||||
| Distributions declared on preferred shares | (10,524) | (10,524) | (10,524) | |||||||
| Other comprehensive loss | 8,290 | 6,980 | 6,980 | 1,310 | ||||||
| Net (loss) income, excluding distributions to preferred unitholders | 39,639 | 35,089 | 35,089 | 4,550 | ||||||
| Ending balance at Sep. 30, 2018 | 1,146,286 | 998,051 | 104,251 | 98,325 | 19 | 1,245,943 | (464,971) | 14,484 | 3,265 | 148,235 |
| Beginning balance at Jun. 30, 2018 | 1,196,876 | 1,040,737 | 104,251 | 98,325 | 19 | 1,244,211 | (418,472) | 12,403 | 3,265 | 156,139 |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
| Other | (7) | (7) | (7) | |||||||
| Equity-based compensation | 2,050 | 1,864 | 1,864 | 186 | ||||||
| Adjustments to noncontrolling interests | (125) | (125) | 125 | |||||||
| Distributions on common shares/units | (55,651) | (46,962) | (46,962) | (8,689) | ||||||
| Distributions declared on preferred shares | (3,508) | (3,508) | (3,508) | |||||||
| Other comprehensive loss | 2,471 | 2,081 | 2,081 | 390 | ||||||
| Net (loss) income, excluding distributions to preferred unitholders | 4,055 | 3,971 | 3,971 | 84 | ||||||
| Ending balance at Sep. 30, 2018 | 1,146,286 | 998,051 | 104,251 | 98,325 | 19 | 1,245,943 | (464,971) | 14,484 | 3,265 | 148,235 |
| Beginning balance at Dec. 31, 2018 | 1,148,271 | 999,710 | 104,251 | 98,325 | 19 | 1,247,639 | (456,924) | 6,400 | 3,265 | 148,561 |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
| Redemption of limited partner units | (143) | (143) | ||||||||
| Other | (23) | (23) | (23) | |||||||
| Exercise of stock options | 1 | 1 | 1 | |||||||
| Equity-based compensation | 5,922 | 5,885 | 5,885 | 37 | ||||||
| Adjustments to noncontrolling interests | (350) | (350) | 350 | |||||||
| Distributions on common shares/units | (167,635) | (141,522) | (141,522) | (26,113) | ||||||
| Distributions declared on preferred shares | (10,524) | (10,524) | (10,524) | |||||||
| Other comprehensive loss | (16,858) | (14,248) | (14,248) | (2,610) | ||||||
| Net (loss) income, excluding distributions to preferred unitholders | (21,288) | (16,334) | (16,334) | (4,954) | ||||||
| Ending balance at Sep. 30, 2019 | 937,723 | 822,595 | 104,251 | 98,325 | 19 | 1,253,152 | (625,304) | (7,848) | 3,265 | 115,128 |
| Beginning balance at Jun. 30, 2019 | 999,161 | 874,371 | 104,251 | 98,325 | 19 | 1,251,319 | (573,611) | (5,932) | 3,265 | 124,790 |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
| Redemption of limited partner units | (124) | (124) | ||||||||
| Other | (9) | (9) | (9) | |||||||
| Equity-based compensation | 2,142 | 2,142 | 2,142 | 0 | ||||||
| Adjustments to noncontrolling interests | (300) | (300) | 300 | |||||||
| Distributions on common shares/units | (55,951) | (47,272) | (47,272) | (8,679) | ||||||
| Distributions declared on preferred shares | (3,508) | (3,508) | (3,508) | |||||||
| Other comprehensive loss | (2,263) | (1,916) | (1,916) | (347) | ||||||
| Net (loss) income, excluding distributions to preferred unitholders | (1,725) | (913) | (913) | (812) | ||||||
| Ending balance at Sep. 30, 2019 | $ 937,723 | $ 822,595 | $ 104,251 | $ 98,325 | $ 19 | $ 1,253,152 | $ (625,304) | $ (7,848) | $ 3,265 | $ 115,128 |
Indebtedness (Roll Forward of Mortgage Indebtedness) (Details) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
|
| Debt [Roll Forward] | ||
| Balance at December 31, 2018 | $ 983,269 | |
| Debt borrowings, net of issuance costs | 503,442 | $ 678,563 |
| Balance at September 30, 2019 | 1,170,129 | |
| Mortgages | ||
| Debt [Roll Forward] | ||
| Balance at December 31, 2018 | 983,269 | |
| Debt borrowings, net of issuance costs | 293,442 | |
| Debt canceled upon lender foreclosures, net of debt issuance costs | (45,160) | |
| Debt amortization payments | (13,367) | |
| Repayment of debt | 47,175 | |
| Amortization of fair value and other adjustments | (1,726) | |
| Amortization of debt issuance costs | 846 | |
| Balance at September 30, 2019 | $ 1,170,129 | |
Subsequent Events (Details) - Subsequent Event $ in Millions |
Oct. 10, 2019
USD ($)
|
|---|---|
| Subsequent Event [Line Items] | |
| Sale leaseback related fees | $ 98.9 |
| Ground lease term | 99 years |
| Ground lease, fixed payments, annualized rate | 7.40% |
| Proceeds from sale of property | $ 42.4 |
| Year for option to repurchase | 30 years |
| Bridge Loan | |
| Subsequent Event [Line Items] | |
| Face amount | $ 55.0 |
| Debt instrument term | 5 years |
| Stated interest rate | 4.00% |
Commitments and Contingencies (Lessee, Operating Lease, Liability, Maturity) (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jan. 01, 2019 |
|---|---|---|
| Commitments and Contingencies Disclosure [Abstract] | ||
| 2019 (October - December) | $ 508 | |
| 2020 | 2,049 | |
| 2021 | 2,069 | |
| 2022 | 2,099 | |
| 2023 | 1,427 | |
| Thereafter | 21,377 | |
| Total lease payments | 29,529 | |
| Less: Discount | 16,240 | |
| Present value of lease liabilities | $ 13,289 | $ 14,400 |
Derivative Financial Instruments (Tables) |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated balance sheets as of September 30, 2019 and December 31, 2018:
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| Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The table below presents the effect of the Company's derivative financial instruments on the consolidated statements of comprehensive (loss) income for the three and nine months ended September 30, 2019 and 2018:
The table below presents the effect of the Company's derivative financial instruments on the consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018:
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| Fair Value Measurements, Recurring and Nonrecurring | The tables below presents the Company’s net assets and (liabilities) measured at fair value as of September 30, 2019 and December 31, 2018 aggregated by the level in the fair value hierarchy within which those measurements fall:
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Summary of Significant Accounting Policies (Tables) |
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| Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of the change to our consolidated January 1, 2019 balance sheet for the adoption of ASU 2016-02 was as follows:
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| Schedule of Cash and Cash Equivalents | The following is a summary of our beginning and ending cash, cash equivalents and restricted cash totals as presented in our statements of cash flows for the nine months ended September 30, 2019 and 2018:
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Indebtedness |
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| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Indebtedness | Indebtedness Mortgage Debt Total mortgage indebtedness at September 30, 2019 and December 31, 2018 was as follows:
A roll forward of mortgage indebtedness from December 31, 2018 to September 30, 2019 is summarized as follows:
On September 16, 2019, an affiliate of WPG Inc. repaid its existing $47.2 million, 7.50% fixed rate cross-defaulted and cross-collateralized pool of mortgages that encumbered 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, which was scheduled to mature on October 16, 2019. Simultaneously, the Company closed on a new $117.0 million, 3.67% fixed rate cross-defaulted and cross-collateralized pool of mortgages encumbering the same properties. The new loan requires monthly interest-only payments and will mature on October 1, 2029. On July 1, 2019, the $45.2 million mortgage on Towne West Square, located in Wichita, Kansas, was canceled upon a deed-in-lieu of foreclosure agreement (see "Covenants" section below for additional details). On April 16, 2019, an affiliate of WPG Inc. closed on a $180.0 million non-recourse mortgage note payable with a ten-year term and a fixed rate of 4.86% secured by Waterford Lakes Town Center, located in Orlando, Florida. The mortgage note payable requires monthly principal and interest payments and will mature on May 6, 2029. The net proceeds were primarily used to reduce corporate debt. On April 8, 2019, the Company exercised the second of three options to extend the maturity date of the $65.0 million term loan secured by Weberstown Mall, located in Stockton, California, for one year. The extended maturity date is June 8, 2020, subject to a one-year extension available at our option subject to compliance with the terms of the underlying loan agreement and payment of customary extension fees. On April 1, 2019, the Company exercised the first of two options to extend the maturity of the $52.0 million mortgage note payable on Town Center at Aurora for one year. The extended maturity date is April 1, 2020, subject to a one-year extension available at our option subject to compliance with the terms of the underlying loan agreement and payment of customary extension fees. Pursuant to the terms of the extension option, the Company entered into a derivative swap agreement to fix the interest rate of the note payable at one-month LIBOR plus 2.27% per annum through both extension periods. At September 30, 2019, the interest rate on the note payable was 4.28%. Unsecured Debt During the nine months ended September 30, 2019, Fitch Ratings, Moody's Investor Service, and S&P Global Ratings lowered their credit rating on WPG L.P.'s unsecured long-term indebtedness, which increased interest rates on our Facility (effective May 2, 2019), December 2015 Term Loan (effective February 15, 2019), and Senior Notes due 2024 (effective August 15, 2019) (see below definitions to these for capitalized terms). Due to the downgrade and based upon current leverage levels, as of September 30, 2019, our Revolver bears interest at LIBOR plus 1.80% (an increase of 55 basis points), our Term Loan bears interest at LIBOR plus 2.10% (an increase of 55 basis points), and our December 2015 Term Loan bears interest at LIBOR plus 2.35% (an increase of 55 basis points). Our Senior Notes due 2024 bear interest at 6.450% (an increase of 50 basis points). During the three and nine months ended September 30, 2019, the Company retired $29.1 million outstanding principal on the Senior Notes due 2024 and recognized a gain of approximately $1.2 million, which is recorded in gain on extinguishment of debt, net in the accompanying consolidated statements of operations and comprehensive (loss) income for the period then ended. The following table identifies our total unsecured debt outstanding at September 30, 2019 and December 31, 2018:
(1) The Exchange Notes were issued at a 0.028% discount, bear interest at 3.850% per annum and mature on April 1, 2020. (2) The Senior Notes due 2024 were issued at a 1.533% discount, bore interest at 5.950% per annum through August 14, 2019, at which time the interest rate increased to 6.450% per annum due to the credit downgrade. The Senior Notes due 2024 mature on August 15, 2024. The interest rate could vary in the future based upon changes to the Company's credit ratings. (3) The unsecured revolving credit facility, or "Revolver" and unsecured term loan, or "Term Loan" are collectively known as the "Facility." (4) The Term Loan bears interest at one-month LIBOR plus 2.10% per annum and will mature on December 30, 2022. We have interest rate swap agreements totaling $250.0 million, which effectively fix the interest rate on a portion of the Term Loan at 4.86% through June 30, 2021. At September 30, 2019, the applicable interest rate on the unhedged portion of the Term Loan was one-month LIBOR plus 2.10% or 4.12%. (5) The December 2015 Term Loan bears interest at one-month LIBOR plus 2.35% per annum and will mature on January 10, 2023. We have interest rate swap agreements totaling $340.0 million which effectively fix the interest rate at 4.06% per annum through maturity. (6) The Revolver provides borrowings on a revolving basis up to $650.0 million, bears interest at one-month LIBOR plus 1.80%, and will initially mature on December 30, 2021, subject to two six month extensions available at our option subject to compliance with terms of the Facility and payment of a customary extension fee. At September 30, 2019, we had an aggregate available borrowing capacity of $432.8 million under the Revolver, net of $0.2 million reserved for outstanding letters of credit. At September 30, 2019, the applicable interest rate on the Revolver was one-month LIBOR plus 1.80% or 3.82%. The interest rate on the Revolver may vary in the future based upon the Company's credit rating and leveraged levels. (7) While we have interest rate swap agreements in place that fix the LIBOR portion of the rates as noted above, the spread over LIBOR could vary in the future based upon changes to the Company's credit ratings and leveraged levels. Covenants Our unsecured debt agreements contain financial and other covenants. If we were to fail to comply with these covenants, after the expiration of the applicable cure periods, the debt maturity could be accelerated or other remedies could be sought by the lender including adjustments to the applicable interest rate. As of September 30, 2019, management believes the Company is in compliance with all covenants of its unsecured debt. The total balance of mortgages was approximately $1.2 billion as of September 30, 2019. At September 30, 2019, certain of our consolidated subsidiaries were the borrowers under 21 non-recourse loans and two full-recourse loans secured by mortgages encumbering 26 properties, including one separate pool of cross-defaulted and cross-collateralized mortgages encumbering a total of four properties. Under these cross-default provisions, a default under any mortgage included in the cross-defaulted pool may constitute a default under all mortgages within that pool and may lead to acceleration of the indebtedness due on each property within the pool. Certain of our secured debt instruments contain financial and other non-financial covenants which are specific to the properties which serve as collateral for that debt. If the borrower fails to comply with these covenants, the lender could accelerate the debt and enforce its right against their collateral. Our existing non-recourse mortgage loans generally prohibit our subsidiaries that are borrowers thereunder from incurring additional indebtedness, subject to certain customary and limited exceptions. In addition, certain of these instruments limit the ability of the applicable borrower's parent entity from incurring mezzanine indebtedness unless certain conditions are satisfied, including compliance with maximum loan to value ratio and minimum debt service coverage ratio tests. Further, under certain of these existing agreements, if certain cash flow levels in respect of the applicable mortgaged property (as described in the applicable agreement) are not maintained for at least two consecutive quarters, the lender could accelerate the debt and enforce its right against its collateral. On November 19, 2018, we received a notice of default letter, dated November 15, 2018, from the special servicer to the borrower, a consolidated subsidiary of WPG L.P., concerning the $49.5 million mortgage loan secured by West Ridge Mall and West Ridge Plaza, located in Topeka, Kansas (collectively known as "West Ridge"). The notice was issued by the special servicer because the borrower did not make certain reserve repayments or deposits as required by the loan agreement for the aforementioned loan. On May 9, 2019, we received notification that a receiver had been appointed to manage and lease West Ridge. An affiliate of the Company still holds title to the property. On April 11, 2018, we received a notice of default letter, dated April 6, 2018, from the special servicer to the borrower, a consolidated subsidiary of WPG L.P., concerning the $45.2 million mortgage loan secured by Towne West Square. The notice was issued by the special servicer because the borrower did not make certain reserve payments or deposits as required by the loan agreement for the aforementioned loan. On July 1, 2019, an affiliate of the Company transitioned the property to the lender and recorded a net gain of $37.7 million, which is included in gain on extinguishment of debt, net in the accompanying consolidated statements of operations and comprehensive (loss) income for the three and nine months ended September 30, 2019. At September 30, 2019, management believes the applicable borrowers under our other non-recourse mortgage loans were in compliance with all covenants where non-compliance could individually, or giving effect to applicable cross-default provisions in the aggregate, have a material adverse effect on our financial condition, results of operations or cash flows. The Company has assessed each of the defaulted properties for impairment indicators and have concluded no impairment charges were warranted as of September 30, 2019. Fair Value of Debt The carrying values of our variable-rate loans approximate their fair values. We estimate the fair values of fixed-rate mortgages and fixed-rate unsecured debt (including variable-rate unsecured debt swapped to fixed-rate) using cash flows discounted at current borrowing rates or Level 2 inputs. We estimate the fair values of consolidated fixed-rate unsecured notes payable using quoted market prices, or, if no quoted market prices are available, we use quoted market prices for securities with similar terms and maturities or Level 1 inputs. The book value and fair value of these financial instruments and the related discount rate assumptions as of September 30, 2019 and December 31, 2018 are summarized as follows:
(1) Excludes debt issuance costs and applicable debt discounts.
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Basis of Presentation and Principles of Consolidation |
9 Months Ended |
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Sep. 30, 2019 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated balance sheets as of September 30, 2019 and December 31, 2018 include the accounts of WPG Inc. and WPG L.P., as well as their majority owned and controlled subsidiaries. The accompanying consolidated statements of operations include the consolidated accounts of the Company. All intercompany transactions have been eliminated in consolidation. Due to the seasonal nature of certain operational activities, the results for the interim period ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year. These consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by GAAP for interim reporting. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. In the opinion of management, the accompanying consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company and its results of operations and cash flows for the interim periods presented. The Company believes that the disclosures made are adequate to prevent the information presented from being misleading. These consolidated unaudited financial statements should be read in conjunction with the audited consolidated and combined financial statements and related notes included in the combined 2018 Annual Report on Form 10-K for WPG Inc. and WPG L.P. (the "2018 Form 10-K"). General These consolidated financial statements reflect the consolidation of properties that are wholly owned or properties in which we own less than a 100% interest but that we control. Control of a property is demonstrated by, among other factors, our ability, without the consent of any other unaffiliated partner or owner, to refinance debt or sell the property and the inability of any other unaffiliated partner or owner to replace us. We consolidate a variable interest entity ("VIE") when we are determined to be the primary beneficiary. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our determination of the primary beneficiary of a VIE considers all relationships between us and the VIE, including management agreements and other contractual arrangements. During the nine months ended September 30, 2019, we sold our interest in undeveloped land that was previously identified as a VIE. As of September 30, 2019, we have one VIE, which consists of our interest in WPG L.P. During the nine months ended September 30, 2019, we did not provide financial or other support to a previously identified VIE that we were not previously contractually obligated to provide. Investments in partnerships and joint ventures represent our noncontrolling ownership interests in properties. We account for these investments using the equity method of accounting. We initially record these investments at cost and we subsequently adjust for net equity in income or loss, which we allocate in accordance with the provisions of the applicable partnership or joint venture agreement and cash contributions and distributions, if applicable. The allocation provisions in the partnership or joint venture agreements are not always consistent with the legal ownership interests held by each general or limited partner or joint venture investee primarily due to partner preferences. We separately report investments in joint ventures for which accumulated distributions have exceeded investments in and our share of net income from the joint ventures within cash distributions and losses in unconsolidated entities, at equity in the consolidated balance sheets. The net equity of certain joint ventures is less than zero because of financing or operating distributions that are usually greater than net income, as net income includes non-cash charges for depreciation and amortization, and WPG has historically committed to or intends to fund the venture. As of September 30, 2019, our assets consisted of material interests in 107 shopping centers. The consolidated financial statements as of that date reflect the consolidation of 90 wholly owned properties and four additional properties that are less than wholly owned, but which we control or for which we are the primary beneficiary. We account for our interests in the remaining 13 properties, or the joint venture properties, using the equity method of accounting. While we manage the day-to-day operations of the joint venture properties, we do not control the operations as we have determined that our partner or partners have substantive participating rights with respect to the assets and operations of these joint venture properties (see Note 5 - "Investment in Unconsolidated Entities, at Equity" for further details). We allocate net operating results of WPG L.P. to third parties and to WPG Inc. based on the partners' respective weighted average ownership interests in WPG L.P. Net operating results of WPG L.P. attributable to third parties are reflected in net (loss) income attributable to noncontrolling interests. WPG Inc.'s weighted average ownership interest in WPG L.P. was 84.4% for both the nine months ended September 30, 2019 and 2018. As of September 30, 2019 and December 31, 2018, WPG Inc.'s ownership interest in WPG L.P. was 84.5% and 84.4%, respectively. We adjust the noncontrolling limited partners' interests at the end of each period to reflect their interest in WPG L.P.
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Commitments and Contingencies |
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Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies | Commitments and Contingencies Litigation We are involved from time-to-time in various legal proceedings that arise in the ordinary course of our business, including, but not limited to commercial disputes, environmental matters, and litigation in connection with transactions including acquisitions and divestitures. We believe that such litigation, claims and administrative proceedings will not have a material adverse impact on our financial position or our results of operations. We record a liability when a loss is considered probable and the amount can be reasonably estimated. Concentration of Credit Risk Our properties rely heavily upon anchor or major tenants to attract customers; however, these retailers do not constitute a material portion of our financial results. Additionally, many anchor retailers in the enclosed retail properties own their spaces further reducing their contribution to our operating results. All operations are within the United States and no customer or tenant accounts for 5% or more of our consolidated revenues. Lease Commitments As of September 30, 2019, a total of four consolidated properties are subject to ground leases. The termination dates of these ground leases range from 2026 to 2076. These ground leases generally require us to make fixed annual rental payments, or a fixed annual rental plus a percentage rent component based upon the revenues or total sales of the property. Some of these leases also include escalation clauses and renewal options. For the three and nine months ended September 30, 2019, we incurred ground lease expense of $215 and $613, respectively, of which $5 and $15 related to straight-line rent expense, respectively, which is included in ground rent in the accompanying consolidated statements of operations and comprehensive (loss) income. For the three and nine months ended September 30, 2018, we incurred ground lease expense of $197 and $592, respectively, of which $13 and $38 related to straight-line rent expense, respectively. Additionally, the Company has two material office leases and one material garage lease. The termination dates of these leases range from 2023 to 2026. These leases generally require us to make fixed annual rental payments, plus our share of CAM expense and real estate taxes and insurance. For the three and nine months ended September 30, 2019, we incurred lease expense of $681 and $1,975, respectively, which is included in general and administrative expenses in the accompanying consolidated statements of operations and comprehensive (loss) income. For the three and nine months ended September 30, 2018, we incurred lease expense of $611 and $2,020, respectively. On January 1, 2019, we recorded a lease liability and corresponding ROU asset of approximately $14.4 million. The weighted average remaining lease term for our consolidated operating leases was 18.5 years and the weighted average discount rate for determining the lease liabilities was 8.7% at January 1, 2019. The discount rates utilized in calculating the lease liabilities represents our estimate of the Company's incremental borrowing rate over the terms that correspond to the leases. Future minimum lease payments due under these leases for each of the next five years and thereafter, excluding applicable extension options, as of September 30, 2019 are as follows:
The weighted average remaining lease term for our consolidated operating leases was 18.9 years and the weighted average discount rate for determining the lease liabilities was 8.7% at September 30, 2019. We had no financing leases as of September 30, 2019.
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