Print Page     Close Window     

SEC Filings

8-K
WASHINGTON PRIME GROUP INC. filed this Form 8-K on 07/26/2018
Entire Document
 


RECONCILIATION OF NET OPERATING INCOME GROWTH FOR COMPARABLE PROPERTIES
 
 
 
 
 
 
 
 
Including Pro-Rata Share of Unconsolidated Properties
 
 
 
 
 
 
 
 
 
 
Washington Prime Group Inc.
 
 
 
 
 
 
 
 
(unaudited, dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
 
 
Six Months Ended June 30,
 
 
 
2018
 
2017
 
Variance $
 

 
2018
 
2017
 
Variance $
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Comp NOI to Operating Income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income
$
43,653

 
$
49,869

 
$
(6,216
)
 
 
 
$
89,324

 
$
99,400

 
$
(10,076
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
63,796

 
66,620

 
(2,824
)
 
 
 
125,090

 
134,131

 
(9,041
)
 
 
General and administrative
11,191

 
9,091

 
2,100

 
 
 
20,845

 
17,919

 
2,926

 
 
Impairment loss

 

 

 
 
 

 
8,509

 
(8,509
)
 
 
Fee income
(2,140
)
 
(1,941
)
 
(199
)
 
 
 
(4,482
)
 
(3,523
)
 
(959
)
 
 
Management fee allocation

 
37

 
(37
)
 
 
 
(16
)
 
513

 
(529
)
 
 
Pro-rata share of unconsolidated joint ventures in comp NOI
18,546

 
14,337

 
4,209

 
 
 
35,429

 
22,270

 
13,159

 
 
Property allocated corporate expense
3,685

 
3,328

 
357

 
 
 
7,181

 
6,664

 
517

 
 
Non-comparable properties and other (1)
(3,413
)
 
99

 
(3,512
)
 
 
 
(2,860
)
 
(1,014
)
 
(1,846
)
 
 
NOI from sold properties
4

 
(2,063
)
 
2,067

 
 
 
(12
)
 
(5,732
)
 
5,720

 
 
Termination income
(258
)
 
(1,944
)
 
1,686

 
 
 
(2,024
)
 
(3,053
)
 
1,029

 
 
Straight-line rents
(1,164
)
 
(377
)
 
(787
)
 
 
 
(2,023
)
 
(831
)
 
(1,192
)
 
 
Ground lease adjustments for straight-line and fair market value
12

 
25

 
(13
)
 
 
 
25

 
30

 
(5
)
 
 
Fair market value and inducement adjustments to base rents
(1,072
)
 
(2,845
)
 
1,773

 
 
 
(4,114
)
 
(5,046
)
 
932

 
 
Less: noncore properties (2)
(3,552
)
 
(4,036
)
 
484

 
 
 
(7,092
)
 
(8,333
)
 
1,241

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comparable NOI - core portfolio
$
129,288

 
$
130,200

 
$
(912
)
 
 
 
$
255,271

 
$
261,904

 
$
(6,633
)
 
 
Comparable NOI percentage change - core portfolio
 
 
 
 
-0.7
 %
 
 
 
 
 
 
 
-2.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 three noncore properties held in each period presented.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
Variance $
 
Variance %
 
2018
 
2017
 
Variance $
 
Variance %
Comparable Property Net Operating Income (Comp NOI)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum rent
$
133,111

 
$
133,014

 
$
97

 
0.1
 %
 
$
266,461

 
$
266,337

 
$
124

 
0.0
 %
Overage rent
1,869

 
1,630

 
239

 
14.7
 %
 
4,105

 
4,420

 
(315
)
 
-7.1
 %
Tenant reimbursements
52,978

 
55,852

 
(2,874
)
 
-5.1
 %
 
107,274

 
112,630

 
(5,356
)
 
-4.8
 %
Other
3,563

 
2,580

 
983

 
38.1
 %
 
5,427

 
4,620

 
807

 
17.5
 %
Total revenue
191,521

 
193,076

 
(1,555
)
 
-0.8
 %
 
383,267

 
388,007

 
(4,740
)
 
-1.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recoverable expenses - operating
(36,624
)
 
(35,331
)
 
(1,293
)
 
-3.7
 %
 
(73,161
)
 
(70,106
)
 
(3,055
)
 
-4.4
 %
Recoverable expenses - real estate taxes
(23,534
)
 
(24,662
)
 
1,128

 
4.6
 %
 
(48,273
)
 
(50,249
)
 
1,976

 
3.9
 %
Provision for credit losses
(845
)
 
(1,870
)
 
1,025

 
54.8
 %
 
(4,151
)
 
(3,523
)
 
(628
)
 
-17.8
 %
Ground rent
(1,230
)
 
(1,013
)
 
(217
)
 
-21.4
 %
 
(2,411
)
 
(2,225
)
 
(186
)
 
-8.4
 %
Total operating expenses
(62,233
)
 
(62,876
)
 
643

 
1.0
 %
 
(127,996
)
 
(126,103
)
 
(1,893
)
 
-1.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comp NOI - Excluding noncore properties
$
129,288

 
$
130,200

 
$
(912
)
 
-0.7
 %
 
$
255,271

 
$
261,904

 
$
(6,633
)
 
-2.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comp NOI - Core enclosed retail properties
$
96,189

 
$
97,926

 
$
(1,737
)
 
-1.8
 %
 
$
190,623

 
$
197,102

 
$
(6,479
)
 
-3.3
 %
Comp NOI - Open air properties
$
33,099

 
$
32,274

 
$
825

 
2.6
 %
 
$
64,648

 
$
64,802

 
$
(154
)
 
-0.2
 %

SUPPLEMENTAL INFORMATION | 6

©2013- WASHINGTON PRIME GROUP