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COLUMBUS, Ohio, July 24, 2019 (GLOBE NEWSWIRE) -- Washington Prime Group Inc. (NYSE: WPG) today announced that it has signed a definitive agreement for the sale of 20 additional outparcels to Four Corners Property Trust, Inc. (FCPT) for a combined purchase price of approximately $37.8 million. This pricing reflects a mid-six percent capitalization rate on in-place net operating income. Washington Prime Group and FCPT anticipate closing on several of the outparcels in 2019, with the majority of the 20 additional outparcels expected to close in 2020, subject to due diligence and closing conditions.
Lou Conforti, CEO and Director of Washington Prime Group stated: “Very rarely does a company have the ability to consummate multiple transactions with the same counterparty whereby there is truly reciprocal benefit and mutual respect. Our continued interaction with Four Corners Property Trust illustrates just such a relationship. Plain and simple, FCPT adds to their growing portfolio of high quality credit tenant lease product and WPG procures cost advantaged capital.
“As importantly, WPG continues to exhibit its ability to access capital whether via traditional measures such as commercial mortgage loans as well as via creative sources such as the FCPT transaction. This transaction provides yet another example of how WPG is significantly satisfying previously discussed redevelopment capital necessary to further the Company’s dominant town center objective.”
The aforementioned outparcels are separate from the previously announced restaurant outparcel sales to FCPT. Washington Prime Group announced in September 2017 the sale of multiple tranches of outparcels with a combined purchase price of approximately $70 million. The Company closed on $32.7 million of outparcels in 2018, and completed $17.3 million of outparcel sales during the first half of 2019. The Company anticipates closing on most of the approximately $20 million of remaining outparcel sales from the 2017 transaction in 2019, subject to due diligence and closing conditions.
Bill Lenehan, CEO and Director of Four Corners Property Trust added: “Washington Prime Group has always been best-in-class at identifying value for their shareholders and has been an excellent partner for us. We are enthusiastic to announce our first foray into the non-restaurant, retail net-lease space with them and look forward to continuing to build on the relationship.”
These outparcels are well located within highly trafficked corridors in Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kentucky, Maryland, New Jersey, Ohio, Pennsylvania, Texas and Virginia.
About Four Corners Property Trust
FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries. Additional information about FCPT can be found on the website at www.fcpt.com.
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.
Lisa A. Indest, CAO & EVP, Finance, 614.887.5844 or firstname.lastname@example.org
Kimberly A. Green, VP, Investor Relations & Corporate Communications, 614.887.5647 or email@example.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 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,” “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 mall store occupancy and same-mall operating income; risks associated with the acquisition, (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; failure 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 proceedings; the impact of future acquisitions and divestitures; assets that may be subject to impairment charges; significant costs related to environmental issues; 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 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.