WASHINGTON PRIME GROUP INC. - FORM 8-K - EX-99.2 - SUPPLEMENTAL REPORT FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016

Attached files

file	filename
EX-99.1 - NEWS RELEASE DATED FEBRUARY 22, 2017 - WASHINGTON PRIME GROUP INC.	exhibit991-4q16.htm
8-K - CURRENT REPORT - WASHINGTON PRIME GROUP INC.	a8-kdatedfebruary222017.htm

SAFE HARBOR: Some of the information contained in this presentation includes forward looking statements. Such statements are subject to a number of risks and uncertainties which could cause actual results in the future to differ materially and adversely from those described in the forward-looking statements. Investors should consult the Company's filings with the Securities and Exchange Commission for a description of the various risks and uncertainties which could cause such a difference before deciding whether to invest.



Table of Contents



		Page
Financial Statement Data
	Consolidated statements of operations (unaudited)	1
	Consolidated balance sheets (unaudited)	2
	Supplemental balance sheet detail	3
	Components of minimum rents, other income and corporate overhead	4
	Reconciliation of funds from operations - including pro-rata share of unconsolidated properties	5
	Reconciliation of net operating income growth for comparable properties - including pro-rata share of unconsolidated properties	6

Debt Information
	Summary of debt	7
	EBITDA and key balance sheet metrics	8
	Key guidance assumptions	9

Operational Data
	Operating metrics	10
	Leasing results	11
	Releasing spreads	12
	Top 10 tenants	13
	Lease expirations	14

Development Activity
	Capital expenditures	15
	Redevelopment projects	16

Property Information
	Property information	17-19

Other
	Non-GAAP pro-rata financial information	20
	Proportionate share of unconsolidated properties - statements of operations (unaudited)	21
	Proportionate share of unconsolidated properties - balance sheet (unaudited)	22
	Glossary of terms	23



CONSOLIDATED STATEMENTS OF OPERATIONS
Washington Prime Group Inc.
(Unaudited, dollars in thousands, except per share data)

		Three Months Ended December 31,						Twelve Months Ended December 31,
		2016			2015			2016			2015

	Revenue:
	Minimum rent (see components on page 4)	$	145,609		$	153,603		$	572,781		$	623,113
	Overage rent	5,095			5,902			12,882			14,040
	Tenant reimbursements	59,138			60,897			236,510			259,774
	Other income (see components on page 4)	7,943			8,969			21,302			24,429
	Total revenues	217,785			229,371			843,475			921,356

	Expenses:
	Property operating	(41,937		)	(49,068		)	(166,690		)	(197,287		)
	Real estate taxes	(25,454		)	(25,129		)	(102,638		)	(109,548		)
	Advertising and promotion	(2,908		)	(3,693		)	(10,375		)	(11,635		)
	Total recoverable expenses	(70,299		)	(77,890		)	(279,703		)	(318,470		)
	Depreciation and amortization	(69,228		)	(71,824		)	(281,150		)	(332,469		)
	Provision for credit losses	(1,707		)	(203		)	(4,508		)	(2,022		)
	General and administrative	(8,942		)	(13,826		)	(37,317		)	(48,154		)
	Merger, restructuring and transaction costs	—			(3,492		)	(29,607		)	(31,653		)
	Ground rent	(1,076		)	(1,116		)	(4,318		)	(6,874		)
	Impairment loss	(1,178		)	(138,120		)	(21,879		)	(147,979		)
	Total operating expenses	(152,430		)	(306,471		)	(658,482		)	(887,621		)

	Operating Income (Loss)	65,355			(77,100		)	184,993			33,735

	Interest expense, net	(32,243		)	(34,136		)	(136,225		)	(139,923		)
	Gain on extinguishment of debt, net	534			—			34,612			—
	Income and other taxes	(817		)	211			(2,232		)	(849		)
	Income (loss) from unconsolidated entities, net	857			404			(1,745		)	(1,247		)
	Gain (loss) on disposition of interests in properties, net	129			(985		)	(1,987		)	4,162

	Net income (loss)	33,815			(111,606		)	77,416			(104,122		)
	Net income (loss) attributable to noncontrolling interests	4,891			(18,140		)	10,285			(18,825		)
	Net income (loss) attributable to the Company	28,924			(93,466		)	67,131			(85,297		)
	Less: Preferred share dividends	(3,508		)	(3,508		)	(14,032		)	(15,989		)
	Net income (loss) attributable to common shareholders	$	25,416		$	(96,974	)	$	53,099		$	(101,286	)

	Earnings (loss) per common share, basic and diluted	$	0.14		$	(0.53	)	$	0.29		$	(0.55	)

SUPPLEMENTAL INFORMATION | 1



CONSOLIDATED BALANCE SHEETS
Washington Prime Group Inc.
(Unaudited, dollars in thousands)

		December 31,			December 31,
		2016			2015
	Assets:
	Investment properties at cost	$	6,245,414		$	6,568,662
	Construction in progress	49,214			87,538
		6,294,628			6,656,200
	Less: accumulated depreciation	2,122,572			2,225,750
		4,172,056			4,430,450

	Cash and cash equivalents	59,353			116,253
	Tenant receivables and accrued revenue, net (see components on page 3)	99,967			91,603
	Real estate assets held-for-sale	50,642			30,000
	Investment in and advances to unconsolidated entities, at equity	458,892			488,071
	Deferred costs and other assets (see components on page 3)	266,556			303,232
	Total assets	$	5,107,466		$	5,459,609

	Liabilities:
	Mortgage notes payable	$	1,618,080		$	1,793,439
	Notes payable	247,637			246,728
	Unsecured term loans	1,334,522			1,332,812
	Revolving credit facility	306,165			275,622
	Accounts payable, accrued expenses, intangibles, and deferred revenues (see components on page 3)	309,178			379,112
	Distributions payable	2,992			2,992
	Cash distributions and losses in unconsolidated entities, at equity	15,421			15,399
	Total liabilities	3,833,995			4,046,104

	Redeemable noncontrolling interests	10,660			6,132

	Equity:
	Stockholders' equity
	Series H Cumulative Redeemable Preferred Stock	104,251			104,251
	Series I Cumulative Redeemable Preferred Stock	98,325			98,325
	Common stock	19			19
	Capital in excess of par value	1,232,638			1,225,926
	Accumulated deficit	(346,706		)	(214,243		)
	Accumulated other comprehensive income	4,916			1,716
	Total stockholders' equity	1,093,443			1,215,994
	Noncontrolling interests	169,368			191,379
	Total equity	1,262,811			1,407,373
	Total liabilities, redeemable noncontrolling interests and equity	$	5,107,466		$	5,459,609

SUPPLEMENTAL INFORMATION | 2



SUPPLEMENTAL BALANCE SHEET DETAIL
Washington Prime Group Inc.
(unaudited, dollars in thousands)

	December 31,			December 31,
	2016			2015

Tenant accounts receivable and accrued revenue, net:
Straight-line receivable	$	39,097		$	39,092
Tenant receivable	17,701			14,027
Allowance for doubtful accounts, net	(8,578		)	(4,222		)
Unbilled receivables and other	51,747			42,706
Total	$	99,967		$	91,603

Deferred costs and other assets:
Deferred leasing and corporate improvements, net	$	90,922		$	100,837
In place lease intangibles, net	70,907			99,836
Acquired above market lease intangibles, net	34,337			47,285
Mortgage and other escrow deposits	29,160			38,906
Prepaids, notes receivable and other assets, net	41,230			16,368
Total	$	266,556		$	303,232

Accounts payable, accrued expenses, intangibles and deferred revenues:
Accounts payable and accrued expenses	$	167,636		$	196,800
Below market lease intangibles, net	106,923			134,315
Other	34,619			47,997
Total	$	309,178		$	379,112

SUPPLEMENTAL INFORMATION | 3



COMPONENTS OF MINIMUM RENTS, OTHER INCOME AND CORPORATE OVERHEAD
Washington Prime Group Inc.
(unaudited, dollars in thousands)





		Three Months Ended December 31,				Twelve Months Ended December 31,
		2016		2015 (1)		2016		2015 (1)

	Components of Minimum Rents:

	Base rent	$	135,200	$	139,566	$	537,854	$	573,076
	Mark-to-market adjustment	1,903		4,212		9,930		17,862
	Straight-line rents	210		752		928		5,229
	Temporary tenant rents	8,296		9,073		24,069		26,946
	Total Minimum Rents	$	145,609	$	153,603	$	572,781	$	623,113

	Components of Other Income:
	Sponsorship and other ancillary property income	$	4,166	$	5,476	$	10,111	$	14,017
	Fee income	1,800		1,584		6,709		3,890
	Lease termination income	632		1,042		1,310		4,931
	Other	1,345		867		3,172		1,591
	Total Other Income	$	7,943	$	8,969	$	21,302	$	24,429

	Components of Corporate Overhead:
	General & administrative	$	8,942	$	13,826	$	37,317	$	48,154
	Third party management fees & internal corporate overhead allocated to operating expense	4,824		6,722		25,464		23,454
	Total Corporate Overhead	$	13,766	$	20,548	$	62,781	$	71,608


	(1) Some reclassifications have been made for consistent presentation, primarily between temporary tenant rents and sponsorship and other ancillary property income.

SUPPLEMENTAL INFORMATION | 4



RECONCILIATION OF FUNDS FROM OPERATIONS
Including Pro-Rata Share of Unconsolidated Properties
Washington Prime Group Inc.
(unaudited, dollars in thousands, except per share data)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2016			2015			2016			2015
Funds from Operations ("FFO"):
Net income (loss)	$	33,815		$	(111,606	)	$	77,416		$	(104,122	)
Less: Preferred dividends and distributions on preferred operating partnership units	(3,567		)	(3,567		)	(14,272		)	(16,217		)
Real estate depreciation and amortization, including joint venture impact	76,192			80,658			311,038			352,000
Noncontrolling interests portion of depreciation and amortization	(31		)	(111		)	(147		)	(225		)
Impairment loss, including loss (gain) on the sale of interests in properties and other	1,049			139,105			24,066			143,817
Net (income) loss attributable to noncontrolling interest holders in properties	(28		)	(2		)	(10		)	18
FFO	$	107,430		$	104,477		$	398,091		$	375,271

Adjusted Funds from Operations:
FFO	$	107,430		$	104,477		$	398,091		$	375,271
Merger, restructuring and transaction costs	—			3,492			29,607			31,653
Bridge loan fee amortization	—			—			—			10,428
Gain on extinguishment of debt, net	(534		)	—			(34,612		)	—
Adjusted FFO	$	106,896		$	107,969		$	393,086		$	417,352

Weighted average common shares outstanding - diluted	221,123			220,204			220,741			219,037

FFO per diluted share	$	0.49		$	0.47		$	1.80		$	1.71
Total adjustments	$	(0.00	)	$	0.02		$	(0.02	)	$	0.20
Adjusted FFO per diluted share	$	0.48		$	0.49		$	1.78		$	1.91

Non-cash items included in FFO:
Non-cash stock compensation expense - excluding expenses included in the merger, restructuring and transaction costs above	$	1,251		$	2,858		$	4,647		$	10,115
Straight-line adjustment as an increase to minimum rents (1)	$	710		$	1,061		$	3,312		$	6,009
Straight-line and fair market value adjustment recorded as an increase to ground lease expense (1)	$	345		$	637		$	1,375		$	2,201
Fair value of debt amortized as a decrease to interest expense (1)	$	1,309		$	424		$	6,370		$	14,889
Loan fee amortization - excluding bridge loan (1)	$	1,189		$	1,423		$	5,599		$	5,030
Mark-to-market/inducement adjustment as an increase to base rents (1)	$	2,826		$	5,765		$	15,015		$	20,580
Non-real estate depreciation (1)	$	2,237		$	1,173		$	8,322		$	4,010
Hedge ineffectiveness as a decrease to interest expense	$	1,546		$	193		$	288		$	193

(1) includes the pro-rata share of the joint venture properties

SUPPLEMENTAL INFORMATION | 5



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 December 31,											Twelve Months Ended December 31,
	2016			2015			Variance $					2016			2015			Variance $

Reconciliation of Comp NOI to Operating Income (Loss):
Operating income (loss)	$	65,355		$	(77,100	)	$	142,455				$	184,993		$	33,735		$	151,258

Depreciation and amortization	69,228			71,824			(2,596		)			281,150			332,469			(51,319		)
General and administrative	8,942			13,826			(4,884		)			37,317			48,154			(10,837		)
Merger, restructuring and transaction costs	—			3,492			(3,492		)			29,607			31,653			(2,046		)
Impairment loss	1,178			138,120			(136,942		)			21,879			147,979			(126,100		)
Fee income	(1,800		)	(1,584		)	(216		)			(6,709		)	(3,890		)	(2,819		)
Management fee allocation	(178		)	3,714			(3,892		)			7,008			16,205			(9,197		)
Adjustment to include Glimcher NOI from prior to merger (2)	—			—			—					—			4,269			(4,269		)
Pro-rata share of unconsolidated joint ventures in comp NOI	13,165			12,477			688					46,976			13,990			32,986
Property allocated corporate expense	3,148			2,545			603					12,116			7,332			4,784
Non-comparable properties and other (1)	(193		)	382			(575		)			707			(4,278		)	4,985
NOI from sold properties	(3,265		)	(9,390		)	6,125					(5,429		)	(19,341		)	13,912
Termination income and outparcel sales	(1,451		)	(1,654		)	203					(2,761		)	(884		)	(1,877		)
Straight-line rents	(210		)	(752		)	542					(928		)	(5,229		)	4,301
Ground lease adjustments for straight-line and fair market value	(3		)	69			(72		)			(15		)	1,175			(1,190		)
Fair market value and inducement adjustments to base rents	(1,893		)	(4,157		)	2,264					(9,874		)	(17,627		)	7,753
Less: noncore properties (3)	(2,931		)	(3,736		)	805					(15,814		)	(17,383		)	1,569

Comparable NOI - core portfolio	$	149,092		$	148,076		$	1,016				$	580,223		$	568,329		$	11,894
Comparable NOI percentage change - core portfolio							0.7		%									2.1		%


(1) Represents an adjustment to remove the NOI amounts from properties not owned and operated in all periods presented. The assets acquired as part of the Glimcher merger are included in comparable NOI, as described in note 2 below.
(2) Represents an adjustment to add the historical NOI amounts from the 23 properties acquired in the merger for periods prior to the January 15, 2015 merger date. This adjustment is included to provide comparability across the periods presented.
(3) NOI from the three noncore properties held in each period presented.

	Three Months Ended December 31,											Twelve Months Ended December 31,
	2016			2015			Variance $			Variance %		2016			2015			Variance $			Variance %
Comparable Core Property Net Operating Income (Comp NOI)
Revenue:
Minimum rent	$	148,144		$	145,335		$	2,809		1.9	%	$	583,165		$	570,774		$	12,391		2.2	%
Overage rent	5,434			5,904			(470		)	-8.0	%	13,905			13,872			33			0.2	%
Tenant reimbursements	62,011			60,983			1,028			1.7	%	247,973			250,532			(2,559		)	-1.0	%
Other	4,266			5,840			(1,574		)	-27.0	%	11,481			20,697			(9,216		)	-44.5	%
Total revenue	219,855			218,062			1,793			0.8	%	856,524			855,875			649			0.1	%

Expenses:
Recoverable expenses	(68,076		)	(68,046		)	(30		)	0.0	%	(265,032		)	(279,005		)	13,973			5.0	%
Provision for credit losses	(1,090		)	(346		)	(744		)	-215.0	%	(4,827		)	(2,116		)	(2,711		)	-128.1	%
Ground rent	(1,597		)	(1,594		)	(3		)	-0.2	%	(6,442		)	(6,425		)	(17		)	-0.3	%
Total operating expenses	(70,763		)	(69,986		)	(777		)	-1.1	%	(276,301		)	(287,546		)	11,245			3.9	%

Comp NOI - Excluding noncore properties	$	149,092		$	148,076		$	1,016		0.7	%	$	580,223		$	568,329		$	11,894		2.1	%

Comp NOI - Core enclosed retail properties	$	114,256		$	114,798		$	(542	)	-0.5	%	$	442,445		$	436,400		$	6,045		1.4	%
Comp NOI - Community centers	$	34,836		$	33,278		$	1,558		4.7	%	$	137,778		$	131,929		$	5,849		4.4	%

SUPPLEMENTAL INFORMATION | 6



SUMMARY OF DEBT
Washington Prime Group Inc.
(dollars in thousands)

		Total Debt as of 12/31/2016			Total Debt, Including WPG Share of Unconsolidated Entities as of 12/31/2016			Total Debt as of 12/31/2015			Total Debt, Including WPG Share of Unconsolidated Entities as of 12/31/2015			Schedule of Maturities by Year (2)	Mortgage Debt Maturities		Weighted Avg. Interest Rate	Unsecured Maturities			Weighted Avg. Interest Rate		Total Debt Maturities		Weighted Avg. Interest Rate



Consolidated debt:														Our Share of Debt (1):
	Mortgage debt
	Fixed	$	1,359,329		$	1,359,329		$	1,596,003		$	1,596,003		2017	$	328,350	6.1%						$	328,350	6.1%
	Variable	251,100			251,100			186,100			186,100			2018	86,421		3.1%						86,421		3.1%
	Debt issuance costs	(5,010		)	(5,010		)	(6,347		)	(6,347		)	2019	147,549		6.3%	$	808,000		2.1	%	955,549		2.7%
	Fair value debt adjustments	12,661			12,661			17,683			17,683			2020	197,563		4.3%	749,953			3.0	%	947,516		3.3%
	Total mortgage debt	1,618,080			1,618,080			1,793,439			1,793,439			2021	352,051		4.9%						352,051		4.9%
														2022	136,442		4.4%						136,442		4.4%
	Unsecured debt													2023	21,390		5.0%	340,000			3.5	%	361,390		3.6%
	Credit facility	308,000			308,000			278,750			278,750			2024	355,676		4.7%						355,676		4.7%
	Term loans	1,340,000			1,340,000			1,340,000			1,340,000			2025	—		0.0%						—		0.0%
	Bonds payable	249,953			249,953			249,940			249,940			> 10 Years	401,189		3.9%						401,189		3.9%
	Debt issuance costs	(9,629		)	(9,629		)	(13,528		)	(13,528		)	Fair value and debt issuance cost adjustments	13,659			(9,629		)			4,030
	Total unsecured debt	1,888,324			1,888,324			1,855,162			1,855,162			Total debt	$	2,040,290	4.8%	$	1,888,324		2.7%		$	3,928,614	3.8%

	Total consolidated debt	$	3,506,404		$	3,506,404		$	3,648,601		$	3,648,601

Unconsolidated debt:														(1) Includes pro-rata share of unconsolidated debt
	Mortgage loans payable	$	864,215		$	416,202		$	893,303		$	416,494		(2) Includes extension options
	Debt issuance costs	(3,537		)	(1,710		)	(2,764		)	(1,410		)
	Fair value debt adjustments	15,133			7,718			17,776			9,066
	Total unconsolidated debt	$	875,811		$	422,210		$	908,315		$	424,150

Total debt:		$	4,382,215		$	3,928,614		$	4,556,916		$	4,072,751


		% of Total Debt as of 12/31/16			Our Share of Total Debt as of 12/31/16			Weighted Avg. Interest Rate			Weighted Avg. Years to Maturity


	Consolidated debt:
	Fixed	76%			$	2,654,617		4.2		%	4.1
	Variable	24%			851,787			2.2		%	2.4
	Total Consolidated	100%			$	3,506,404		3.7		%	3.7

	Unconsolidated debt:
	Fixed	100%			$	422,210		4.1		%	8.0
	Variable	0%			—
	Total Unconsolidated	100%			$	422,210		4.1		%	8.0

	Total debt:
	Fixed	78%			$	3,076,827		4.2		%	4.6
	Variable	22%			851,787			2.3		%	2.5
	Total debt	100%			$	3,928,614		3.8		%	4.1

SUPPLEMENTAL INFORMATION | 7



EBITDA AND KEY BALANCE SHEET METRICS
Washington Prime Group Inc.
(dollars in thousands)

		Three Months Ended December 31,						Twelve Months Ended December 31,
		2016			2015			2016			2015
	Calculation of EBITDA:
	Net income (loss)	$	33,815		$	(111,606	)	$	77,416		$	(104,122	)
	Interest expense, net	32,243			34,136			136,225			139,923
	Income and other taxes	817			(211		)	2,232			849
	Depreciation and amortization	69,228			71,824			281,150			332,469
	(Gain) loss on disposition of interests in properties, net	(129		)	985			1,987			(4,162		)
	Impairment loss	1,178			138,120			21,879			147,979
	Gain on extinguishment of debt, net	(534		)	—			(34,612		)	—
	EBITDA	136,618			133,248			486,277			512,936
	Adjustments related to pro-rata share of unconsolidated entities, net	13,013			13,125			55,049			31,077
	Merger, restructuring and transaction costs	—			3,492			29,607			31,653
	Adjusted EBITDA	$	149,631		$	149,865		$	570,933		$	575,666

		Covenant Requirement			As of December 31, 2016
	Key Balance Sheet Metrics:	Covenant Requirement			Ratio
	Total indebtedness to Total assets	≤ 65%			48.6%
	Secured indebtedness to Total assets	≤ 40%			22.3%
	Consolidated EBITDA / Annual service charge	≥ 1.5x			3.51x
	Total unencumbered assets / Total unsecured indebtedness	> 150%			229%

Note: Balance sheet metrics above are based upon the bond covenants definitions using the trailing 12 months of EBITDA for all properties.

SUPPLEMENTAL INFORMATION | 8



KEY GUIDANCE ASSUMPTIONS
Washington Prime Group Inc.
2017 Guidance

		Year 2017
		Guidance
	Earnings Expectations:
	FFO per share, as adjusted - diluted (1)	$1.62 to $1.68
	FFO per share - diluted - first quarter (1)	$0.38 to $0.40

	Underlying Assumptions to 2017 Guidance (1):
	Comparable NOI growth for core properties- fiscal year 2017 (2) (3)	0% to 1.5%
	General and administrative expenses (including property allocated overhead)	$52-$56 million
	Non-cash adjustments for purchase accounting and straight line rents (3)	$15-$17 million
	Assumed property sales	three non-core properties
	Assumed joint venture transactions (4)	one transaction - 7 properties
	Assumed lender transitions	2 (Mesa/Southern Hills)
	Redevelopment spend (3)	$125 to $150 million
	Recurring capital expenditures and deferred leasing costs (3)	$65 to $75 million


	(1) Guidance excludes non-cash gain in 2017 of approximately $35 million related to Mesa Mall and Southern Hills Mall lender transitions. Also excludes the gain on the sale of 49% interest of seven assets of approximately $130 - $134 million.
	(2) Excludes lease termination fees
	(3) Includes pro-rata share of joint venture properties
	(4) Sell 49% of seven properties to O'Connor in second quarter 2017

SUPPLEMENTAL INFORMATION | 9

OPERATING METRICS

Washington Prime Group Inc.

As of December 31, 2016

PORTFOLIO SUMMARY

Property Count

Leased Occupancy %¹

Store Sales
Per Square Foot for
12 Months Ended¹

Store
Occupancy Cost %¹

% of Total
Comp NOI
for 12 Months
Ended 12/31/16

NOI Growth
for 12 Months Ended 12/31/16

12/31/16

12/31/15

12/31/16

12/31/15

12/31/16

12/31/15

Community Centers

95.9%

96.0%

23.7%

4.4%

Tier 1 -Enclosed retail properties

93.6%

93.5%

399

398

12.2%

12.3%

53.7%

3.2%

Tier 2 -Enclosed retail properties

91.1%

89.0%

302

303

13.8%

22.6%

-2.6%

Core Enclosed Retail Properties Subtotal

92.7%

91.9%

368

366

12.6%

12.7%

76.3%

1.4%

Total Core Properties

110

94.0%

93.5%

100%

2.1%

ENCLOSED RETAIL PROPERTY TIERS

TIER 1

TIER 2

NONCORE

Arbor Hills

Anderson Mall

Gulf View Square

Arboretum, The

Boynton Beach Mall

River Oaks Center

Ashland Town Center

Charlottesville Fashion Square

Virginia Center Commons

Bowie Town Center

Chautauqua Mall

Brunswick Square

Colonial Park Mall

Clay Terrace

Cottonwood Mall

Dayton Mall

Indian Mound Mall

Edison Mall

Irving Mall

Grand Central Mall

Lincolnwood Town Center

Great Lakes Mall

Maplewood Mall

Jefferson Valley Mall

Mesa Mall

Lima Mall

New Towne Mall

Lindale Mall

Northtown Mall

Longview Mall

Oak Court Mall

Malibu Lumber Yard

Rolling Oaks Mall

Mall at Fairfield Commons, The

Rushmore Mall

Mall at Johnson City, The

Seminole Towne Center

Markland Mall

Sunland Park Mall

Melbourne Square

Towne West Square

Morgantown Mall

Valle Vista Mall

Muncie Mall

West Ridge Mall

Northwoods Mall

Oklahoma City Properties

Orange Park Mall

Paddock Mall

Pearlridge Center

Polaris Fashion Place

Port Charlotte Town Center

Scottsdale Quarter

Southern Park Mall

The Outlet Collection | Seattle

Town Center at Aurora

Town Center Crossing & Plaza

Waterford Lakes Town Center

Weberstown Mall

Westminster Mall

WestShore Plaza

¹Metrics only include properties owned and managed as of December 31, 2016. Southern Hills Mall is excluded as it is managed by a third party, although still owned by the Company.

SUPPLEMENTAL INFORMATION | 10



LEASING RESULTS
Washington Prime Group Inc.
Year-to-date through December 31, 2016


	Number		Square Feet				Base Rent PSF						Average Term			Tenant Allow.$(000)s				Tenant Allow. PSF
	of Leases		New	Renewal		Total	New		Renewal		Total		New	Renewal	Total	New		Renewal		New		Renewal
Core Enclosed Retail Properties	676		479,494	1,328,704		1,808,198	$	31.00	$	31.47	$	31.34	7.5	4.5	5.4	$	19,474	$	7,749	$	40.61	$	5.83
Community Centers	166		455,634	306,650		762,284	$	15.78	$	17.07	$	16.30	8.1	4.7	6.3	$	14,224	$	425	$	31.22	$	1.39
Subtotal	842		935,128	1,635,354		2,570,482	$	23.59	$	28.77	$	26.87	7.6	4.5	5.6	$	33,698	$	8,174	$	36.04	$ 5.00

Noncore Properties	30		20,907	46,069		66,976	$	19.67	$	33.75	$	30.85	3.6	4.2	4.1	$	35.00	$	—	$	1.67	$	—

Total	872		956,035	1,681,423		2,637,458	$	23.54	$	28.91	$	26.96	7.5	4.5	5.5	$	33,733	$	8,174	$	35.28	$ 4.86



	Base Minimum Rent PSF As of December 31,
	2016			2015
Core Enclosed Retail Properties	$	27.69		$	27.18
Community Centers	$	13.27		$	13.07
Total Core Properties	$	21.67		$	21.63





Note: The leasing results for enclosed properties include stores of 10,000 SF or less, also anchors and office leases are excluded. For open-air properties, office leases are excluded. Only new leases and renewals with terms in excess of 12 months are included. These results include properties owned and managed at December 31, 2016.

SUPPLEMENTAL INFORMATION | 11



RELEASING SPREADS
Washington Prime Group Inc.
For the twelve months ended December 31, 2016

		Square Footage of Openings	New Rate PSF		Prior Rate PSF		Re-leasing Spread
		Square Footage of Openings	New Rate PSF		Prior Rate PSF		$			%


	Community Centers:

	New	165,853	$	20.04	$	19.78	$	0.26		1.3	%
	Renewal	268,433	$	19.66	$	18.66	$	1.00		5.4	%
	All Deals	434,286	$	19.81	$	19.09	$	0.72		3.8	%

	Core Enclosed Retail Properties:

	New	261,762	$	36.39	$	37.11	$	(0.72	)	-1.9	%
	Renewal	1,210,091	$	38.67	$	39.54	$	(0.87	)	-2.2	%
	All Deals	1,471,853	$	38.26	$	39.11	$	(0.85	)	-2.2	%

	Total Core Portfolio:

	New	427,615	$	30.05	$	30.39	$	(0.34	)	-1.1	%
	Renewal	1,478,524	$	35.22	$	35.75	$	(0.53	)	-1.5	%
	All Deals	1,906,139	$	34.06	$	34.55	$	(0.49	)	-1.4	%

	Note: The Company's three noncore properties are excluded from these metrics. Only core properties owned and managed at December 31, 2016 are included in the metrics.

SUPPLEMENTAL INFORMATION | 12



TOP 10 TENANTS
Washington Prime Group Inc.
As of December 31, 2016

	Non-Anchor Stores (Ranked by Percent of Total Minimum Rents)
	National Tenant Name	Tenant DBA's in Portfolio	Number of Stores	GLA of Stores	Percent of Total GLA in Portfolio	Percent of Total Annualized Base Minimum Rent

	Signet Jewelers, Ltd.	Body by Pagoda, Gordon's Jewelers, Goodman Jewelers, Jared's, J.B. Robinson Jewelers, Kay Jewelers, Leroy's Jewelers, Mark's & Morgan, Osterman's Jewelry, Piercing Pagoda, Plumb Gold, Rogers Jewelers, Silver and Gold Connection, Totally Pagoda, Zales Jewelers	161	218,677	0.3%	3.2%
	L Brands, Inc.	Bath & Body Works, White Barn Candle, Pink, Victoria's Secret, La Senza	127	629,508	1.0%	2.8%
	Footlocker, Inc.	Champs Sports, Foot Action USA, Footlocker, Kids Footlocker, Lady Footlocker, World Footlocker	107	447,024	0.7%	2.2%
	Ascena Retail Group Inc.	Ann Taylor, Catherine's, Dress Barn, Justice, Justice & Brothers, Lane Bryant, Loft, Maurice's	130	661,447	1.1%	1.9%
	Genesco Inc.	Buckeye Corner, Buckeye Room, Cardboard Heroes, Hat World, Johnston & Murphy, Journeys, Journeys Kidz, Lids, Locker Room by Lids, Shi by Journeys, The Hat Shack, Underground by Journeys	120	203,186	0.3%	1.4%
	Luxottica Group	Apex, Lenscrafters, Oakley, Pearle Vision, Sunglass Hut, Watch Station	90	228,976	0.4%	1.3%
	American Eagle Outfitters, Inc.	aerie, American Eagle	46	258,917	0.4%	1.2%
	The Gap, Inc.	Athleta, Banana Republic, Banana Republic Outlet, Gap, Gap Kids, Gap Outlet, Intermix, Old Navy	35	402,690	0.6%	1.1%
	The Finish Line, Inc.	Finish Line, Jack Rabbit, Running Fit, Texas Running Company	46	252,503	0.4%	1.1%
	Advent International Corp.	Charlotte Russe	36	239,567	0.4%	0.9%

	Anchor Stores (Ranked by Total GLA)
	National Tenant Name	Tenant DBA's in Portfolio	Number of Stores	GLA of Stores	Percent of Total GLA in Portfolio	Percent of Total Annualized Base Minimum Rent	Number of WP Owned Stores

	Sears Holding Corporation *	K-Mart, Sears	49	6,929,178	11.0%	1.0%	18
	Macy's, Inc.	Macy's	32	5,459,726	8.7%	0.3%	6
	JCPenney Company, Inc.	JCPenney	41	5,189,122	8.3%	1.2%	21
	Dillard's, Inc.	Dilliards	26	3,690,886	5.9%	0.1%	2
	The Bon-Ton Stores, Inc.	Bon-Ton, Carson Pirie Scott, Elder Beerman, Herbergers, Younkers	15	1,523,739	2.4%	0.8%	13
	Target Corporation	Target, Super Target	11	1,520,830	2.4%	0.0%	1
	Kohl's Corporation	Kohl's	13	1,089,873	1.7%	0.8%	10
	Dick's Sporting Goods, Inc.	Dick's Sporting Goods, Field & Stream, Golf Galaxy	18	1,068,894	1.7%	1.9%	15
	Belk, Inc.	Belk, Belk for Her, Belk Home Store	12	965,537	1.5%	0.4%	8
	Wal-Mart Stores, Inc.	Wal-Mart, Sam's Club	5	772,215	1.2%	0.1%	1

	* Includes 11 stores owned by Seritage Growth Properties

SUPPLEMENTAL INFORMATION | 13



LEASE EXPIRATIONS (1)
Washington Prime Group Inc.
As of December 31, 2016

	Enclosed Retail Properties
		Number of Leases Expiring	Anchor Square Feet of GLA Expiring	Store Square Feet of GLA Expiring	Total Square Feet of GLA Expiring	Anchor Annualized Base Rents PSF Expiring		Store Annualized Base Rents PSF Expiring		% of Annualized Base Rents Represented by Expiring Leases
	Year
	Month To Month Leases	183	—	429,117	429,117	$	—	$	31.37	2.7	%
	2017	694	1,583,092	1,912,915	3,496,007	$	2.24	$	28.36	10.5	%
	2018	745	1,700,039	2,101,683	3,801,722	$	5.36	$	29.12	12.8	%
	2019	608	2,413,470	2,006,749	4,420,219	$	4.15	$	28.08	12.4	%
	2020	470	2,092,158	1,643,076	3,735,234	$	4.89	$	26.80	10.7	%
	2021	448	2,502,742	1,538,883	4,041,625	$	6.02	$	25.31	9.8	%
	2022	294	1,939,503	1,098,031	3,037,534	$	3.95	$	27.71	7.3	%
	2023	281	1,850,376	1,160,541	3,010,917	$	7.70	$	26.39	7.6	%
	2024	213	582,328	826,128	1,408,456	$	3.69	$	29.87	4.7	%
	2025	203	1,376,848	868,629	2,245,477	$	15.19	$	27.06	5.8	%
	2026	186	167,790	946,633	1,114,423	$	6.92	$	26.49	5.2	%
	2027 and Thereafter	205	12,645,997	716,207	13,362,204	$	6.78	$	24.93	5.3	%
	Specialty Leasing Agreements w/ terms in excess of 11 months	760	—	1,807,741	1,807,741	$	—	$	14.71	5.2	%

	Community Centers
		Number of Leases Expiring	Anchor Square Feet of GLA Expiring	Store Square Feet of GLA Expiring	Total Square Feet of GLA Expiring	Anchor Annualized Base Rents PSF Expiring		Store Annualized Base Rents PSF Expiring		% of Annualized Base Rents Represented by Expiring Leases
	Year
	Month To Month Leases	25	28,470	76,495	104,965	$	4.50	$	19.13	0.7	%
	2017	111	288,175	354,195	642,370	$	5.13	$	18.94	5.7	%
	2018	153	887,634	438,198	1,325,832	$	10.61	$	17.55	12.3	%
	2019	159	717,567	504,665	1,222,232	$	10.39	$	19.51	12.5	%
	2020	176	1,234,555	550,332	1,784,887	$	11.46	$	21.71	18.8	%
	2021	148	1,357,524	432,456	1,789,980	$	9.05	$	19.74	15.0	%
	2022	88	985,564	317,019	1,302,583	$	8.74	$	17.16	9.7	%
	2023	56	470,543	211,788	682,331	$	9.82	$	20.42	6.4	%
	2024	42	459,153	198,008	657,161	$	8.82	$	18.75	5.6	%
	2025	39	158,355	108,132	266,487	$	12.41	$	24.39	3.3	%
	2026	50	233,057	174,511	407,568	$	13.96	$	24.04	5.3	%
	2027 and Thereafter	63	3,486,102	360,020	3,846,122	$	8.16	$	11.26	4.6	%
	Specialty Leasing Agreements w/ terms in excess of 11 months	10	—	42,228	42,228	$	—	$	3.11	0.1	%

	(1) Does not consider the impact of renewal options that may be contained in leases.

SUPPLEMENTAL INFORMATION | 14



CAPITAL EXPENDITURES
Washington Prime Group Inc.
(dollars in thousands)


		Three Months Ended December 31, 2016		Unconsolidated Joint Venture Proportionate Share		Total Three Months Ended December 31, 2016		Three Months Ended December 31, 2015		Unconsolidated Joint Venture Proportionate Share		Total Three Months Ended December 31, 2015

	New Developments	$	6,922	$	—	$	6,922	$	337	$	—	$	337
	Redevelopments, Renovations, and Expansions	$	19,163	$	3,224	$	22,387	$	20,456	$	7,809	$	28,265
	Deferred Leasing Costs	$	3,359	$	475	$	3,834	$	5,011	$	91	$	5,102

	Property Capital Expenditures:
	Non-anchor stores tenant improvements and allowances	$	6,764	$	828	$	7,592	$	7,458	$	594	$	8,052
	Operational capital expenditures	12,036		883		12,919		14,054		578		14,632
	Total Property Capital Expenditures	$	18,800	$	1,711	$	20,511	$	21,512	$	1,172	$	22,684


		Twelve Months Ended December 31, 2016		Unconsolidated Joint Venture Proportionate Share		Total Twelve Months Ended December 31, 2016		Twelve Months Ended December 31, 2015		Unconsolidated Joint Venture Proportionate Share		Total Twelve Months Ended December 31, 2015

	New Developments	$	29,740	$	—	$	29,740	$	2,865	$	—	$	2,865
	Redevelopments, Renovations, and Expansions	$	75,075	$	14,119	$	89,194	$	84,083	$	15,723	$	99,806
	Deferred Leasing Costs	$	14,623	$	1,634	$	16,257	$	16,666	$	578	$	17,244

	Property Capital Expenditures:
	Non-anchor stores tenant improvements and allowances	$	25,943	$	3,311	$	29,254	$	35,939	$	1,819	$	37,758
	Operational capital expenditures	23,595		1,465		25,060		30,637		815		31,452
	Total Property Capital Expenditures	$	49,538	$	4,776	$	54,314	$	66,576	$	2,634	$	69,210

SUPPLEMENTAL INFORMATION | 15



REDEVELOPMENT PROJECTS
Washington Prime Group Inc.
As of December 31, 2016
(dollars in thousands)

	Projects under construction or approved for construction with an estimated investment of $5 million or more
	Property Name	City	St	Opportunity	Ownership %	Estimated Total Costs (1)	Estimated Project Yield (1) (2)	WPG Costs Incurred to Date (3)				Estimated Completion (1)


	Fairfield Town Center	Houston	TX	Multi-phase retail development (approved phases)	100%	$50,000 - $60,000	7% - 9%	$	41,783			2016/2017

	Jefferson Valley Mall	Yorktown Heights	NY	New Dick's Sporting Goods, Ulta Cosmetics, and interior/exterior renovation	100%	$40,000 - $42,000	8% - 9%	$	33,481			2016 4Q/ 2017 2Q

	Lindale Mall	Cedar Rapids	IA	New Kirkland's, Carter's, and OshKosh B'Gosh. New Outparcels for Panda Express, Jared and Five Guys	100%	$3,000 - $5,000	18% - 20%	$	2,785			2016 4Q/ 2017 2Q

	New Towne Mall	New Philadelphia	OH	Re-tenant Sears anchor space with Dick's Sporting Goods and adding an Ulta Cosmetics	100%	$8,000 - $9,000	8% - 9%	$	5,588			2016 4Q/ 2017 2Q

	Northwoods Mall	Peoria	IL	Replace former Macy's store with Round 1 as well as additional retail, dining and entertainment uses	100%	$15,000 - $17,000	8% - 9%	$	25			2018

	Oklahoma Properties (Classen Curve)	Oklahoma City	OK	Add 28,000-32,000 additional square feet with new multi-tenant building	100%	$10,000 - $13,000	10% - 12%	$	78			2017 Q4

	Outlet Collection \| Seattle	Seattle	WA	Replace Marshall's with Dave & Busters and other retail	100%	$4,000 -$5,000	9% - 11%	$	—			2018

	Pearlridge Center	Aiea	HI	Redevelop downtown section of property, add new outparcels, and new dining and retailers	51%	$16,000 - $18,000	6% - 8%	$	367	(4	)	2018

	Scottsdale Quarter (5)	Scottsdale	AZ	Ground-level retail in existing residential building; Retail and office tenants in mixed-use building, New residential and retail development on middle parcel.	51%	$59,800 - $69,800	7% - 8%	$	43,445	(4	)	2018/2019

	Westminster Mall	Westminster	CA	New Sky Zone, Luxe Buffet and John's Incredible Pizza	100%	$6,000 - $7,000	13% - 15%	$	2,781			2017 4Q


	(1) Estimated total costs, project yield, and completion are subject to adjustment as a result of changes (some of which are not under the direct control of the company) that are inherent in the development process. Project costs exclude the allocation of internal costs such as labor, interest, and taxes.
	(2) The project yield excludes any NOI benefit to the property that is indirectly related to the redevelopment, although each project does benefit other aspects of the property. The yield includes near-term renewals.
	(3) Project costs exclude the allocation of internal costs such as labor, interest, and taxes.
	(4) Amounts shown represent 51% of the project spend.
	(5) The new residential and retail units planned for development in the middle parcel have a completion date of 2018/ 2019.

SUPPLEMENTAL INFORMATION | 16



PROPERTY INFORMATION
Washington Prime Group Inc.
As of December 31, 2016

							Debt Information
										Indebtedness
Property Name	St	City (Major Metropolitan Area)	Financial Interest (1)	Total Center Square Feet	Total WPG Owned Square Feet	Total Tenant Owned Square Feet	Maturity Date (2)	Interest Rate	Type	Total	WPG Share
Enclosed Retail Properties
Anderson Mall	SC	Anderson	100%	670,031	314,842	355,189	12/01/22	4.61%	Fixed	$18,981	$18,981
Arbor Hills	MI	Ann Arbor	95%	87,395	87,395	0	01/01/26	4.27%	Fixed	$25,498	$24,287
Arboretum, The	TX	Austin	100%	199,510	199,510	0
Ashland Town Center	KY	Ashland	100%	433,769	330,379	103,390	07/06/21	4.90%	Fixed	$38,440	$38,440
Bowie Town Center	MD	Bowie (Wash, D.C.)	100%	571,832	270,534	301,298
Boynton Beach Mall	FL	Boynton Beach (Miami)	100%	1,101,994	590,440	511,554
Brunswick Square	NJ	East Brunswick (New York)	100%	759,537	288,241	471,296	03/01/24	4.80%	Fixed	$73,791	$73,791
Charlottesville Fashion Square	VA	Charlottesville	100%	578,093	354,389	223,704	04/01/24	4.54%	Fixed	$47,878	$47,878
Chautauqua Mall	NY	Lakewood	100%	427,826	422,850	4,976
Chesapeake Square Theater	VA	Chesapeake (VA Beach)	100%	42,248	42,248	0
Clay Terrace	IN	Carmel (Indianapolis)	100%	576,294	557,418	18,876
Colonial Park Mall	PA	Harrisburg	100%	738,966	363,298	375,668
Cottonwood Mall	NM	Albuquerque	100%	1,051,318	409,741	641,577	04/06/24	4.82%	Fixed	$100,772	$100,772
Dayton Mall	OH	Dayton	100%	1,442,979	771,198	671,781	09/01/22	4.57%	Fixed	$82,000	$82,000
Edison Mall	FL	Fort Myers	100%	1,055,036	572,743	482,293
Grand Central Mall	WV	Parkersburg	100%	848,240	735,909	112,331	07/06/20	6.05%	Fixed	$41,149	$41,149
Great Lakes Mall	OH	Mentor (Cleveland)	100%	1,287,748	580,614	707,134
Gulf View Square (3)	FL	Port Richey (Tampa)	100%	756,098	401,451	354,647
Indian Mound Mall	OH	Newark	100%	556,574	463,913	92,661
Irving Mall	TX	Irving (Dallas)	100%	1,052,170	488,625	563,545
Jefferson Valley Mall	NY	Yorktown Heights (New York)	100%	570,795	405,103	165,692
Lima Mall	OH	Lima	100%	742,867	543,045	199,822
Lincolnwood Town Center	IL	Lincolnwood (Chicago)	100%	422,994	422,993	1	04/01/21	4.26%	Fixed	$50,633	$50,633
Lindale Mall	IA	Cedar Rapids	100%	728,321	477,102	251,219
Longview Mall	TX	Longview	100%	641,559	193,342	448,217
Malibu Lumber Yard	CA	Malibu	100%	31,495	31,495	0
Mall at Fairfield Commons, The	OH	Beavercreek	100%	1,028,695	853,875	174,820
Mall at Johnson City, The	TN	Johnson City	51%	568,310	492,902	75,408	05/06/20	6.76%	Fixed	$50,770	$25,893
Maplewood Mall	MN	St. Paul (Minneapolis)	100%	906,096	323,616	582,480
Markland Mall	IN	Kokomo	100%	417,978	414,498	3,480
Melbourne Square	FL	Melbourne	100%	723,765	419,855	303,910
Mesa Mall	CO	Grand Junction	100%	873,467	430,763	442,704	06/01/16	5.79%	Fixed	$87,250	$87,250
Morgantown Mall	WV	Morgantown	100%	556,036	556,036	0
Muncie Mall	IN	Muncie	100%	641,804	387,978	253,826	04/01/21	4.19%	Fixed	$35,326	$35,326
New Towne Mall	OH	New Philadelphia	100%	494,640	494,640	0
Northtown Mall	MN	Blaine	100%	606,751	606,751	0
Northwoods Mall	IL	Peoria	100%	692,260	219,291	472,969
Oak Court Mall	TN	Memphis	100%	846,570	360,753	485,817	04/01/21	4.76%	Fixed	$38,371	$38,371
Oklahoma City Properties	OK	Oklahoma City	99%	281,389	281,389	0
Orange Park Mall	FL	Orange Park (Jacksonville)	100%	959,282	556,102	403,180
Outlet Collection \| Seattle, The	WA	Seattle	100%	921,055	921,055	0	01/14/20	2.27%	Variable	$86,500	$86,500
Paddock Mall	FL	Ocala	100%	548,709	318,152	230,557
Pearlridge Center	HI	Aiea	51%	1,137,492	1,084,215	53,277	06/01/25	3.53%	Fixed	$225,000	$114,750
Polaris Fashion Place	OH	Columbus	51%	1,571,322	734,851	836,471	03/01/25	3.90%	Fixed	$225,000	$114,750
							03/01/25	4.46%	Fixed	$15,500	$7,905
Port Charlotte Town Center (4)	FL	Port Charlotte	100%	770,895	486,686	284,209	11/01/20	5.30%	Fixed	$44,021	$44,021
River Oaks Center (3)	IL	Calumet City (Chicago)	100%	1,124,947	620,683	504,264
Rolling Oaks Mall	TX	San Antonio	100%	881,382	285,074	596,308

SUPPLEMENTAL INFORMATION | 17



PROPERTY INFORMATION
Washington Prime Group Inc.
As of December 31, 2016

							Debt Information
										Indebtedness
Property Name	St	City (Major Metropolitan Area)	Financial Interest (1)	Total Center Square Feet	Total WPG Owned Square Feet	Total Tenant Owned Square Feet	Maturity Date (2)	Interest Rate	Type	Total	WPG Share
Enclosed Retail Properties
Rushmore Mall	SD	Rapid City	100%	827,422	750,946	76,476	02/01/19	5.79%	Fixed	$94,000	$94,000
Scottsdale Quarter	AZ	Scottsdale	51%	713,626	713,626	0	06/01/25	3.53%	Fixed	$165,000	$84,150
Seminole Towne Center	FL	Sanford (Orlando)	22%	1,110,030	596,739	513,291	05/06/21	5.97%	Fixed	$55,592	$12,442
Southern Hills Mall (5)	IA	Sioux City	100%				06/01/16	9.79%	Fixed	$101,500	$101,500
Southern Park Mall	OH	Youngstown	100%	1,206,429	1,010,865	195,564
Sunland Park Mall	TX	El Paso	100%	927,703	332,766	594,937
Town Center at Aurora	CO	Aurora (Denver)	100%	1,081,035	341,093	739,942	04/01/21	4.19%	Fixed	$54,250	$54,250
Town Center Crossing & Plaza	KS	Leawood	51%	672,373	535,812	136,561	02/01/27	4.25%	Fixed	$35,204	$17,954
							02/01/27	5.00%	Fixed	$70,944	$36,181
Towne West Square	KS	Wichita	100%	943,715	447,181	496,534	06/01/21	5.61%	Fixed	$47,051	$47,051
Valle Vista Mall	TX	Harlingen	100%	650,623	492,222	158,401	05/10/17	5.35%	Fixed	$40,000	$40,000
Virginia Center Commons (3)	VA	Glen Allen	100%	774,619	433,710	340,909
Waterford Lakes Town Center	FL	Orlando	100%	966,074	691,574	274,500
Weberstown Mall	CA	Stockton	100%	858,550	263,730	594,820	06/08/21	2.52%	Variable	$65,000	$65,000
West Ridge Mall	KS	Topeka	100%	996,014	391,903	604,111	03/06/24	4.84%	Fixed	$41,413	$41,413
Westminster Mall	CA	Westminster (Los Angeles)	100%	1,215,005	442,313	772,692	04/01/24	4.65%	Fixed	$81,468	$81,468
WestShore Plaza	FL	Tampa	100%	1,076,400	847,938	228,462	10/01/17	2.82%	Variable	$99,600	$99,600
Enclosed Retail Properties Total				47,948,152	29,460,401	18,487,751				$2,237,902	$1,807,706

Community Centers
Bloomingdale Court	IL	Bloomingdale (Chicago)	100%	696,641	385,096	311,545
Bowie Town Center Strip	MD	Bowie (Wash, D.C.)	100%	106,589	40,927	65,662
Canyon View Marketplace	CO	Grand Junction	100%	43,053	43,053	0	11/06/23	5.47%	Fixed	$5,390	$5,390
Charles Towne Square	SC	Charleston	100%	71,794	71,794	0
Chesapeake Center	VA	Chesapeake (Virginia Beach)	100%	305,853	128,972	176,881
Concord Mills Marketplace	NC	Concord (Charlotte)	100%	262,020	226,907	35,113	11/01/23	4.82%	Fixed	$16,000	$16,000
Countryside Plaza	IL	Countryside (Chicago)	100%	403,756	204,295	199,461
Dare Centre	NC	Kill Devil Hills	100%	168,673	109,154	59,519
DeKalb Plaza	PA	King of Prussia (Philadelphia)	100%	101,911	44,091	57,820
Empire East	SD	Sioux Falls	100%	301,438	167,616	133,822
Fairfax Court	VA	Fairfax (Wash, D.C.)	100%	249,488	245,999	3,489
Fairfield Town Center	TX	Houston	100%	228,642	120,642	108,000
Forest Plaza	IL	Rockford	100%	434,839	414,542	20,297	10/10/19	7.50%	Fixed	$16,544	$16,544
Gaitway Plaza (4)	FL	Ocala	99%	208,039	207,239	800
Gateway Centers	TX	Austin	100%	512,339	403,336	109,003
Greenwood Plus	IN	Greenwood (Indianapolis)	100%	155,319	146,091	9,228
Henderson Square	PA	King of Prussia (Philadelphia)	100%	107,371	53,615	53,756	01/01/18	3.17%	Fixed	$12,155	$12,155
Keystone Shoppes	IN	Indianapolis	100%	29,126	29,126	0
Lake Plaza	IL	Waukegan (Chicago)	100%	215,568	124,939	90,629
Lake View Plaza	IL	Orland Park (Chicago)	100%	367,369	311,960	55,409
Lakeline Plaza	TX	Cedar Park (Austin)	100%	386,854	356,417	30,437	10/10/19	7.50%	Fixed	$15,499	$15,499
Lima Center	OH	Lima	100%	233,878	173,878	60,000
Lincoln Crossing	IL	O'Fallon (St. Louis)	100%	303,526	98,061	205,465
MacGregor Village	NC	Cary	100%	146,774	146,774	0
Mall of Georgia Crossing	GA	Buford (Atlanta)	100%	440,774	317,639	123,135	10/06/22	4.28%	Fixed	$23,197	$23,197
Markland Plaza	IN	Kokomo	100%	90,527	80,977	9,550
Martinsville Plaza	VA	Martinsville	100%	102,105	94,760	7,345
Matteson Plaza	IL	Matteson (Chicago)	100%	273,836	182,436	91,400

SUPPLEMENTAL INFORMATION | 18



PROPERTY INFORMATION
Washington Prime Group Inc.
As of December 31, 2016

							Debt Information
										Indebtedness
Property Name	St	City (Major Metropolitan Area)	Financial Interest (1)	Total Center Square Feet	Total WPG Owned Square Feet	Total Tenant Owned Square Feet	Maturity Date (2)	Interest Rate	Type	Total	WPG Share
Community Centers
Morgantown Commons	WV	Morgantown	100%	230,843	230,843	0
Muncie Towne Plaza	IN	Muncie	100%	171,621	171,621	0	10/10/19	7.50%	Fixed	$6,443	$6,443
North Ridge Shopping Center	NC	Raleigh	100%	169,796	164,396	5,400	12/01/22	3.41%	Fixed	$12,264	$12,264
Northwood Plaza	IN	Fort Wayne	100%	204,956	76,727	128,229
Palms Crossing	TX	McAllen	100%	405,925	372,088	33,837	08/01/21	5.49%	Fixed	$35,461	$35,461
Plaza at Buckland Hills, The	CT	Manchester	100%	327,785	216,886	110,899
Richardson Square	TX	Richardson (Dallas)	100%	516,100	40,187	475,913
Rockaway Commons	NJ	Rockaway (New York)	100%	239,050	229,162	9,888
Rockaway Town Plaza	NJ	Rockaway (New York)	100%	374,430	73,154	301,276
Royal Eagle Plaza	FL	Coral Springs (Miami)	100%	202,952	191,999	10,953
Shops at Arbor Walk, The	TX	Austin	100%	458,469	280,315	178,154	08/01/21	5.49%	Fixed	$40,078	$40,078
Shops at North East Mall, The	TX	Hurst (Dallas)	100%	365,039	365,039	0
St. Charles Towne Plaza	MD	Waldorf (Wash, D.C.)	100%	391,653	329,811	61,842
Tippecanoe Plaza	IN	Lafayette	100%	90,522	85,811	4,711
University Center	IN	Mishawaka	100%	150,441	100,441	50,000
University Town Plaza	FL	Pensacola	100%	565,538	216,194	349,344
Village Park Plaza	IN	Carmel (Indianapolis)	100%	575,548	290,009	285,539
Washington Plaza	IN	Indianapolis	100%	50,107	50,107	0
West Ridge Plaza	KS	Topeka	100%	253,086	98,593	154,493	03/06/24	4.84%	Fixed	$10,353	$10,353
West Town Corners (4)	FL	Altamonte Springs (Orlando)	100%	382,423	233,805	148,618
Westland Park Plaza (4)	FL	Orange Park (Jacksonville)	100%	163,259	163,259	0
White Oaks Plaza	IL	Springfield	100%	404,879	248,533	156,346	10/10/19	7.50%	Fixed	$12,887	$12,887
Whitehall Mall	PA	Whitehall	100%	613,731	598,857	14,874	11/01/18	7.00%	Fixed	$9,266	$9,266
Wolf Ranch	TX	Georgetown (Austin)	100%	632,253	420,067	212,186
Community Centers Total				14,888,508	10,178,240	4,710,268				$215,537	$215,537

Total				62,836,660	39,638,641	23,198,019				$2,453,439	$2,023,243

Footnotes:
(1) Direct and indirect interests in some joint venture properties are subject to preferences on distributions and/or capital allocation in favor of other partners.
(2) Assumes full exercise of extension options.
(3) Noncore property. Virginia Center Commons was sold January 10, 2017. Gulf View Square and River Oaks Center were sold February 21, 2017.
(4) WPG receives substantially all economic benefit of property due to performance or advance, although legal ownership is less than 100%. Legal ownership is as follows: Port Charlotte Town Center (80%); Gaitway Plaza (88.2%); West Town Corners (88.2%); and Westland Park Plaza (88.2%).
(5) While the Company still owns the property, the special servicer has transferred management to a third party. Accordingly, operating metrics are excluded for this property.

SUPPLEMENTAL INFORMATION | 19



	NON-GAAP PRO-RATA FINANCIAL INFORMATION

	The pro-rata financial information presented on pages 21 and 22 is not, and is not intended to be, a presentation in accordance with GAAP. The non-GAAP pro-rata financial information aggregates the Company’s proportionate economic ownership of each unconsolidated asset in the property portfolio that the Company does not wholly own. The amounts in the column labeled ‘‘WPG’s Share of Unconsolidated Entities’’ were derived on a per property or entity basis by applying to each line item the ownership percentage interest used to arrive at the Company’s share of the operations for the period consistent with the application of the equity method of accounting to each of the unconsolidated joint ventures.

	The Company does not control the unconsolidated joint ventures and the presentations of the assets and liabilities and revenues and expenses do not represent the Company’s legal claim to such items.

	The Company provides pro-rata financial information because it is believed to assist investors and analysts in estimating the economic interest in our unconsolidated joint ventures when read in conjunction with the Company’s reported results under GAAP.

SUPPLEMENTAL INFORMATION | 20



NON-GAAP PRO-RATA FINANCIAL INFORMATION
PROPORTIONATE SHARE OF UNCONSOLIDATED PROPERTIES - STATEMENTS OF OPERATIONS
Washington Prime Group Inc.
(Unaudited, dollars in thousands)

		Three Months Ended December 31, 2016			Twelve Months Ended December 31, 2016
		WPG's Share of Unconsolidated Entities			WPG's Share of Unconsolidated Entities

	Revenue:
	Minimum rent	$	14,908		$	60,705
	Overage rent	774			2,082
	Tenant reimbursements	6,433			24,033
	Other income	452			1,272
	Total revenues	22,567			88,092

	Expenses:
	Property operating	(5,037		)	(20,251		)
	Real estate taxes	(2,171		)	(8,737		)
	Advertising and promotion	(348		)	(1,224		)
	Total recoverable expenses	(7,556		)	(30,212		)
	Depreciation and amortization	(9,205		)	(39,534		)
	Provision for credit losses	(169		)	(777		)
	General and administrative	—			(31		)
	Ground rent	(972		)	(3,768		)
	Total operating expenses	(17,902		)	(74,322		)

	Operating Income	4,665			13,770

	Interest expense, net	(3,907		)	(16,006		)
	Income and other taxes	99			(26		)
	Gain on disposition of interests in properties, net	—			517
	Income (loss) from unconsolidated entities, net	$	857		$	(1,745	)


	Note: The amounts above represent the Company's pro-rata share based upon the percentage of ownership interest per joint venture entity in each amount indicated, but it should be noted that the company does not control the unconsolidated entities.

SUPPLEMENTAL INFORMATION | 21



NON-GAAP PRO-RATA FINANCIAL INFORMATION
PROPORTIONATE SHARE OF UNCONSOLIDATED PROPERTIES - BALANCE SHEET
Washington Prime Group Inc.
(Unaudited, dollars in thousands)


		December 31, 2016 WPG's Share of Unconsolidated Entities
	Assets:
	Investment properties at cost	$	885,508
	Construction in progress	10,511
		896,019
	Less: accumulated depreciation	71,369
		824,650

	Cash and cash equivalents	8,116
	Tenant receivables and accrued revenue, net (see below)	9,640
	Deferred costs and other assets (see below)	67,856
	Total assets	$	910,262

	Liabilities:
	Mortgage notes payable	$	422,210
	Accounts payable, accrued expenses, intangibles, and deferred revenues (see below)	58,260
	Total liabilities	480,470

	Equity:
	Stockholders' equity
	Capital in excess of par value	429,792
	Total equity	429,792
	Total liabilities and equity	$	910,262


	Supplemental Balance Sheet Detail:

	Tenant accounts receivable and accrued revenue, net:
	Straight-line receivable	$	4,047
	Tenant receivable	2,206
	Allowance for doubtful accounts, net	(880		)
	Unbilled receivables and other	4,267
	Total	$	9,640

	Deferred costs and other assets:
	Deferred leasing, net	$	13,204
	In place lease intangibles, net	28,552
	Acquired above market lease intangibles, net	19,201
	Mortgage and other escrow deposits	5,775
	Prepaids, notes receivable and other assets, net	1,124
	Total	$	67,856

	Accounts payable, accrued expenses, intangibles and deferred revenues:
	Accounts payable and accrued expenses	$	15,765
	Below market leases, net	35,642
	Other	6,853
	Total	$	58,260

	Note: The amounts above represent the Company's pro-rata share based upon the percentage of ownership interest per joint venture entity in each amount indicated, but it should be noted that the company does not control the unconsolidated entities.

SUPPLEMENTAL INFORMATION | 22



GLOSSARY OF TERMS


	- Average rent PSF	Average base minimum rent charge in effect for the reporting period for all tenants that qualify to be included in the occupancy as defined below.
	- EBITDA	Net income (loss) attributable to the company before interest, depreciation and amortization, gains/losses on sale of operating properties, impairment charges, income taxes and unrealized re-measurement adjustment of derivative instrument.
	- Funds from operations (FFO)	Funds From Operations ("FFO") is a supplemental non-GAAP measure utilized to evaluate the operating performance of real estate companies. The National Association of Real Estate Investment Trusts ("NAREIT") defines FFO as net income (loss) attributable to common shareholders computed in accordance with generally accepted accounting principles ("GAAP"), excluding (i) gains or losses from sales of operating real estate assets and (ii) extraordinary items, plus (iii) depreciation and amortization of operating properties and (iv) impairment of depreciable real estate and in substance real estate equity investments and (v) after adjustments for unconsolidated partnerships and joint ventures calculated to reflect funds from operations on the same basis.
	- Funds from operations, as adjusted (AFFO)	AFFO is calculated by adjusting FFO as defined above for non-recurring items such as merger costs, non-recurring debt fee amortization charges, gain on debt extinguishment and similar items.
	- Gross leasable area (GLA)	Measure of the total amount of leasable space in a property.
	- Net operating income (NOI)	Revenues from all rental property less operating and maintenance expenses, real estate taxes and rent expense including the company's pro-rata share of real estate joint ventures. Excludes non-recurring items such as termination income and sales from outparcels.
	- Occupancy	Occupancy is the percentage of total owned square footage ("GLA") which is leased as of the last day of the reporting period. For enclosed retail properties, all company owned space except for anchors, majors, office and outlots are included in the calculation. For community lifestyle centers, all owned GLA other than office are included in the calculation.
	- Occupancy cost	Percent of tenant's total occupancy cost (rent and reimbursement of CAM, tax and insurance) to tenant sales for stores of 10,000 sf or less.
	- Re-leasing spread	Re-leasing Spread is a ‘‘same space’’ measure that compares initial rent for new deals on individual spaces to expiring rents for prior tenants. For enclosed retail properties, majors, freestanding and office tenants are excluded. For Community Centers, office tenants are excluded. The new rent is the weighted average of the initial cash Total Rent PSF for spaces leased during the current quarter and year-to-date period, and includes new leases and existing tenant renewals and relocations (including expansions and downsizings). The prior rent is the weighted average of the final cash Total Rent PSF as of the month the tenant terminates or closes. Total Rent PSF includes Base Minimum Rent, common area maintenance ("CAM") and base percentage rent. It includes leasing activity on all spaces occupied by tenants as long as the opening and closing dates are within 24 months of one another.
	- Sales PSF	Trailing twelve-month sales for in-line stores of 10,000 SF or less. Excludes freestanding stores and specialty tenants.

SUPPLEMENTAL INFORMATION | 23

Attached files

Stock widget

Investing forum

WASHINGTON PRIME GROUP INC. Reports