- The Company is temporarily closing its enclosed assets with an indoor common area;
- Open air assets and those tenants with exterior entrances located at enclosed assets may continue to remain open subject to local, state and federal mandates;
- Restaurant tenancy at open air assets are anticipated to remain open if able to provide carry out and/or delivery options; and
- As Washington Prime Group assets serve as town centers, enclosed and open air assets are being utilized to provide space and support to the community.
COLUMBUS, Ohio–(BUSINESS WIRE)–Washington Prime Group Inc. (NYSE: WPG) today announced that in its continued recognition of the need to address the spread of the coronavirus (COVID-19), the Company will temporarily close its enclosed assets with an indoor common area that have not already temporarily closed. This measure will take effect today and will end on March 29 or at a date in compliance with applicable federal, local or state mandates.
Exceptions for enclosed centers include exterior facing restaurants with carryout and/or delivery services, and other tenants with exterior facing entrances which may remain open offering essential goods and services to the extent permitted by law.
In addition, the Company anticipates a portion of its open air centers, which represent approximately 40% of total net operating income (NOI) to remain open to continue to offer essential goods and services to the extent permitted by law.
Importantly, the Company has offered to applicable governmental agencies all of its open air and enclosed assets to serve as potential distribution centers for emergency medical supplies, outdoor designated areas to perform COVID-19 testing, food depository stations and other complementary services that may be required by communities in need. While this list is continually expanding, current examples include:
- Several of our General Managers and local management teams have partnered with federal, state or local government agencies to provide space for the storage, staging or distribution of emergency medical supplies and/or services.
- The Company has partnered with local public school districts to provide space for the distribution of free breakfast and lunch to children eighteen and under.
- The Company is working in conjunction with restaurant tenants to offer meals to health care workers and first responders in the coming days.
- Many assets are serving as a location for blood drives to support the need for blood donations from healthy individuals during this critical time.
- Assets are also serving as drop off locations in conjunction with local nonprofit organizations collecting essential items for their communities.
- The Company is supporting restaurant tenants offering carryout and/or delivery services by providing social media support and community engagement.
Lou Conforti, CEO and Director of Washington Prime Group, stated: “Last week, I wrote a letter which I had our General Managers distribute to those local, state and federal agencies working to contain the COVID-19 pandemic and I’d like to share with you excerpted sections.
In this regard, our Company is basically comprised of over one hundred distinctly local venues. Each and every one serves a specific demographic constituency and shame on us if ‘serve’ is exclusively defined as the sale of a good or service. We characterize our assets as town centers and especially in a time of need this sure as heck transcends footwear, cosmetics or a lamp.
For instance, our assets might be used as distribution centers with respect to medical supplies or as a temporary facility to administer COVID-19 testing…we could work with local school districts to make certain children have suitable supervision as well as being fed a nutritious meal or two. I’m sure there are a lot of other ways we can do our part and look forward to everybody’s input.
Plain and simple, my colleagues and I are offering up our assets to those local, state and federal agencies tasked with the containment and ultimately the eradication of coronavirus as well as those impacted by this national crisis. Of course, we’re going to follow all of the restrictions imposed by local, state and federal government agencies…we just want to make certain we’re at the forefront of this situation.
We are all dealing with the impact of the coronavirus pandemic on a real time basis and it is imperative Corporate America diligently work with their public counterparts to quell this crisis. Our General Managers will be forwarding this memorandum to those decision makers and we have a task force in place to implement whatever might be needed. We certainly don’t have all of the answers albeit what I do know is my colleagues and I refuse to sit on our behinds and not offer our help.
“Never have I been more proud and awe inspired by every single one of my colleagues who have gone above and beyond to serve as a community resource during this time of need. I would like to express my heartfelt thanks to our General Managers and local management teams who have worked tirelessly with their corporate counterparts and our tenants to proactively implement ~50 such initiatives with more underway. I am truly blown away by their philanthropic actions.
“While the immediate emphasis is upon eradicating coronavirus, it is important to note ~40% of our NOI, or 58 of our assets are open air. I have no doubt Washington Prime Group will emerge from this national crisis stronger and our assets will continue to serve our guests as town centers. Today, however, our town centers and my colleagues are focusing upon the task at hand.
“Stay safe and stay strong.”
Enclosed assets affected by temporary closures:
- California: Weberstown Mall; Westminster Mall
- Colorado: Mesa Mall; Town Center at Aurora
- Florida: Boynton Beach Mall; Edison Mall; Melbourne Square Mall; Orange Park Mall; Paddock Mall; Port Charlotte Town Center; WestShore Plaza
- Hawaii: Pearlridge Center
- Illinois: Lincolnwood Town Center; Northwoods Mall
- Indiana: Markland Mall; Muncie Mall
- Iowa: Lindale Mall; Southern Hills Mall
- Kentucky: Ashland Town Center
- Minnesota: Maplewood Mall; Northtown Mall
- Montana: Southgate Mall
- New Jersey: Brunswick Square
- New Mexico: Cottonwood Mall
- New York: Chautauqua Mall; Jefferson Valley Mall
- Ohio: Dayton Mall; Great Lakes Mall; Indian Mound Mall; Lima Mall; New Towne Mall; Polaris Fashion Place; Southern Park Mall; The Mall at Fairfield Commons
- South Carolina: Anderson Mall
- Tennessee: Oak Court Mall; The Mall at Johnson City
- Texas: Irving Mall; Longview Mall; Rolling Oaks Mall; Sunland Park Mall
- Washington: The Outlet Collection | Seattle
- West Virginia: Grand Central Mall; Morgantown Mall
Open air assets expected to remain open to the extent permitted by law:
- Arizona: Scottsdale Quarter
- California: Malibu Lumber Yard
- Colorado: Canyon View Marketplace
- Connecticut: The Plaza at Buckland Hills
- Florida: Gaitway Plaza, Royal Eagle Plaza; University Town Plaza; Waterford Lakes Town Center; West Town Corners; Westland Park Plaza
- Georgia: Mall of Georgia Crossing
- Illinois: Bloomingdale Court; Countryside Plaza; Forest Plaza; Lake Plaza; Lake View Plaza; Lincoln Crossing; White Oaks Plaza
- Indiana: Clay Terrace; Greenwood Plus; Keystone Shoppes; Markland Plaza; Muncie Plaza; Northwood Plaza; Tippecanoe Plaza; University Center; Village Park Plaza; Washington Plaza
- Kansas: Town Center Plaza & Crossing
- Maryland: Bowie Town Center; Bowie Town Center Strip; St. Charles Town Plaza
- Michigan: Arbor Hills
- New Jersey: Rockaway Commons; Rockaway Town Court; Rockaway Town Plaza
- North Carolina: Concord Marketplace; Dare Centre; MacGregor Village; North Ridge Shopping Center
- Ohio: Lima Center
- Oklahoma: Oklahoma City Properties
- Pennsylvania: Henderson Square; Whitehall Mall
- South Dakota: Empire East
- Texas: Fairfield Town Center; Gateway Shopping Centers; Lakeline Plaza; Lakeline Village; Palms Crossing; Richardson Square; The Arboretum; The Shops at Arbor Walk; The Shops at North East Mall; Wolf Ranch Town Center
- Virginia: Chesapeake Center; Fairfax Court; Martinsville Plaza
About Washington Prime Group
Washington Prime Group Inc. is a retail REIT and a recognized leader in the ownership, management, acquisition and development of retail properties. The Company combines a national real estate portfolio with its expertise across the entire shopping center sector to increase cash flow through rigorous management of assets and provide new opportunities to retailers looking for growth throughout the U.S. Washington Prime Group® is a registered trademark of the Company. Learn more at www.washingtonprime.com.
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 which represent the current expectations and beliefs of management of Washington Prime Group Inc. (“WPG”) concerning the proposed transactions, the anticipated consequences and benefits of the transactions and the targeted close date for the transactions, and other future events and their potential effects on WPG, including, but not limited to, statements relating to anticipated financial and operating results, the Company’s plans, objectives, expectations and intentions, cost savings and other statements, including words such as “anticipate,” “believe,” “confident,” “plan,” “estimate,” “expect,” “intend,” “will,” “should,” “may,” and other similar expressions. Such statements are based upon the current beliefs and expectations of WPG’s management, and involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of WPG to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, without limitation: changes in asset quality and credit risk; ability to sustain revenue and earnings growth; changes in political, economic or market conditions generally and the real estate and capital markets specifically; the impact of increased competition; the availability of capital and financing; tenant or joint venture partner(s) bankruptcies; the failure to increase store occupancy and same-store operating income; risks associated with the acquisition, disposition, (re)development, expansion, leasing and management of properties; changes in market rental rates; trends in the retail industry; relationships with anchor tenants; risks relating to joint venture properties; costs of common area maintenance; competitive market forces; the level and volatility of interest rates; the rate of revenue increases as compared to expense increases; the financial stability of tenants within the retail industry; the restrictions in current financing arrangements or the failure to comply with such arrangements; the liquidity of real estate investments; the impact of changes to tax legislation and WPG’s tax positions; losses associated with closures, failures and stoppages associated with the spread and proliferation of the COVID -19 (coronavirus) outbreak; to qualify as a real estate investment trust; the failure to refinance debt at favorable terms and conditions; loss of key personnel; material changes in the dividend rates on securities or the ability to pay dividends on common shares or other securities; possible restrictions on the ability to operate or dispose of any partially-owned properties; the failure to achieve earnings/funds from operations targets or estimates; the failure to achieve projected returns or yields on (re)development and investment properties (including joint ventures); expected gains on debt extinguishment; changes in generally accepted accounting principles or interpretations thereof; terrorist activities and international hostilities; the unfavorable resolution of legal or regulatory proceedings; the impact of future acquisitions and divestitures; assets that may be subject to impairment charges; significant costs related to environmental issues; changes in LIBOR reporting practices or the method in which LIBOR is determined; and other risks and uncertainties, including those detailed from time to time in WPG’s statements and periodic reports filed with the Securities and Exchange Commission, including those described under “Risk Factors”. The forward-looking statements in this communication are qualified by these risk factors. Each statement speaks only as of the date of this press release and WPG undertakes no obligation to update or revise any forward-looking statements to reflect new information, subsequent events or circumstances. Actual results may differ materially from current projections, expectations, and plans, if any. Investors, potential investors and others should give careful consideration to these risks and uncertainties.
Washington Prime Group Inc.
Lisa A. Indest, CAO & EVP, Finance, 614.887.5844 or [email protected]
Kimberly A. Green, VP, Investor Relations & Corporate Communications, 614.887.5647 or [email protected]