WASHINGTON PRIME GROUP INC. (NYSE:WPG) Files An 8-K Other EventsItem 8.01.Other Events.
On November 8, 2016, Washington Prime Group™ Inc., an Indiana corporation (the “Company,” “WPG” or “Registrant”), filed a Form 8-K with the Securities and Exchange Commission (“SEC”) to disclose the execution of a Purchase, Sale and Escrow Agreement (the “Agreement”) among certain affiliates of the Company, O’Connor Mall Partners, L.P. (“OC”) and Fidelity National Title Insurance Company. Generally, the Agreement concerns the sale of a minority limited partnership interest to OC in connection with the creation of a joint venture to hold certain shopping center properties and other developable real estate parcels currently owned by WPG affiliates.
As reported in the above-referenced Form 8-K, the Agreement provided OC with the right to terminate unilaterally the Agreement on or before November 18, 2016 (the “Deadline Date”) if OC did not complete confirmatory due diligence to its satisfaction. OC completed its due diligence review to its satisfaction on the Deadline Date and its escrowed deposit became non-refundable. The parties to the Agreement still expect the transaction to close no earlier than January 15, 2017.
Forward Looking Statements
This Form 8-K contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, which represent the current expectations and beliefs of management of Washington Prime Group, L.P. (“WPGLP”) and the Company concerning the business and operations of the Company and WPGLP as well as other future events and their potential effects on WPGLP and the Company, including, but not limited to, statements relating to anticipated financial and operating results, WPGLP and the Company’s plans, objectives, expectations and intentions, cost savings and other statements, including words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” “will,” “should,” “may,” and other similar expressions. Such statements are based upon the current beliefs and expectations of WPGLP and the Company’s management, and involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of WPGLP or the Company to be materially different from future results, estimated non-cash impairment charges, performance or achievements expressed or implied by such forward-looking statements. Such factors include, without limitation: the ability to satisfy the conditions to pending transactions on the proposed terms and timeframe; the possibility that the transactions do not close when expected or at all; the ability to finance transactions; the effect of the announcement of the transactions on WPGLP and the Company’s relationships with certain of its tenants, lenders or other business parties or on their operating results and businesses generally; 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 other joint venture partner(s) bankruptcies; the failure to increase mall store occupancy and same-mall operating income; risks associated with the acquisition, 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 WPGLP and the Company’s tax positions; failure of the Company 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 development and investment properties; changes in generally accepted accounting principles or interpretations thereof; terrorist activities and international hostilities; the unfavorable resolution of legal proceedings; the impact of future transactions, including any future acquisitions or divestitures; significant costs related to environmental issues; and other risks and uncertainties, including those detailed from time to time in WPGLP’s and the Company’s statements and periodic reports filed with the SEC. The forward-looking statements in this report are qualified by the risk factors provided in the aforementioned reports and statements. Each statement speaks only as of the date of this communication (or any earlier date indicated in this communication) and WPGLP and the Company undertake no obligation to update or revise any forward-looking statements to reflect 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. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy.
About WASHINGTON PRIME GROUP INC. (NYSE:WPG)
Washington Prime Group Inc., formerly WP Glimcher Inc., is a real estate investment trust (REIT). The Company is engaged in ownership, development and management of retail real estate properties. Washington Prime Group, L.P. (WPG L.P.) is the Company’s subsidiary that owns, through its affiliates, the Company’s real estate properties and other assets. The Company’s assets consist of interests in approximately 120 shopping centers in the United States, consisting of community centers and malls. Its properties consist of approximately 70 million square feet of gross leasable area. The Company also owns parcels of land, which can be used for either the development of shopping centers or the expansion of existing properties. The Company focuses on retail tenant leases, including fixed minimum rent leases, percentage rent leases based on tenants’ sales volumes and reimbursements from tenants for certain expenses. The Company’s properties are leased to various tenants. WASHINGTON PRIME GROUP INC. (NYSE:WPG) Recent Trading Information
WASHINGTON PRIME GROUP INC. (NYSE:WPG) closed its last trading session up +0.08 at 10.21 with 2,492,332 shares trading hands.
