WP Glimcher reports fourth-quarter, full-year earnings, new venture

Staff report

YOUNGSTOWN

WP Glimcher reported a decrease in net income for the fourth quarter of 2014 because of costs associated with the merger between Glimcher Realty Trust and Washington Prime Group.

The Columbus-based company that operates the Southern Park Mall in Boardman on Thursday reported net income attributable to common shareholders for the fourth quarter at $33.6 million, or $0.22 per diluted share, compared with $42.8 million, or $0.28 per diluted share, in the prior year.

Funds from operations during the fourth quarter were $85.9 million, or $0.46 per diluted share, compared with $97 million, or $0.52 per diluted share, in the year prior.

Results for the fourth quarter of 2014 include a total of $11.3 million, or $0.06 per diluted share, comprised of costs related to the merger with Glimcher Realty Trust, transaction and related costs associated with Washington Prime Group — the spinoff from Simon Property Group — and general and administrative expenses for the new stand-alone company.

WP Glimcher was established in 2015 through the merger of Washington Prime Group Inc. and Glimcher Realty Trust.

It is a premier retail real-estate investment trust with a portfolio of 120 enclosed regional malls and open-air lifestyle community centers.

For the year, the company had a 1.6 percent increase from 2013 in net operating income. Total operating expenses increased $5.3 million, primarily because of an increase in costs associated with snow removal and utility costs from 2014’s winter, according to a news release.

Funds from operations for the year were $295.1 million, or $1.57 per diluted share, compared with $359.1 million or $1.92 per diluted share.

Expenses related to the spinoff of Simon, Washington Prime Group, include $38.9 million, or $0.21 per diluted share. Costs associated with the Glimcher merger were $8.8 million, or $0.05 per diluted share.

In addition, the company incurred $12.2 million, or $0.07 per diluted share, in general and administrative expenses as a new stand-alone company.

For the full year 2014, net income attributable to common shareholders was $170 million, or $1.10 per diluted share, compared with $155.5 million, or $1 per diluted share, for the same period in the prior year.

The company’s investment activity during the year includes the acquisition of Whitehall Mall in Whitehall, Pa., in December 2014 for about $14.9 million.

On Thursday, WP Glimcher announced a joint venture with O’Connor Capital Partners for the ownership and operation of five WP Glimcher malls with a value of $1.6 billion.

O’Connor will have a 49 percent ownership interest in the joint venture, and WP Glimcher will retain a 51 percent interest.

The five malls are: Polaris Fashion Place in Columbus; The Mall at Johnson City in Johnson City, Tenn.; Pearlridge Center in Aiea, Hawaii; Scottsdale Quarter in Scottsdale, Ariz.; and Town Center Plaza in Leawood, Kan.

WP Glimcher will continue to lease and manage the properties.