1 November 2019 November 2019 November 2019 November 2019
SAFE HARBOR Some of the information contained herein includes forward looking statements. Such statements are subject to risks and uncertainties which could cause actual results in the future to differ materially and adversely from those described within the forward looking statements. Investors should consult the Company’s filings with the Securities and Exchange Commission (SEC) for a description of the various risks and uncertainties which could cause such a difference before deciding whether to invest. This presentation also contains non GAAP financial measures and comparable net operating income (NOI). Reconciliation of this non GAAP financial measure to the most directly comparable GAAP measure can be found within the Company’s quarterly supplemental information package as well as within filings made with the SEC, which are available on the investor relations section of the Company's website www.washingtonprime.com. 2
3Q EARNINGS CALL EXCERPTED QUOTES Let’s now turn to leasing which As You Starting with a department store update, Oughta Know 9 is our most important and we have now resolved 17, or 74%, of 23 Epic 10 task. Our leasing professionals vacant department stores. While pundits continue to perform with the fortitude of a were expecting a [more] Bitter [than] Seven Nation Army 11 and as a result Sweet Symphony 7 , we were able to exhibited a robust 13.0% YOY increase provide solutions ahead of schedule and totaling 3.2M SF…the number of lease attract a wide array of tenants which transactions for the same period increased markedly diversify current rosters. 9.0%. I’ll let you decide what’s [The above exhibits redevelopment better…Fieldhouse USA, HomeGoods, potential via] a conservative assumption Of the aforementioned 3.2M SF, 56.0% of PetSmart, Round1, ALDI, The RoomPlace, set [which] resulted in $2.00 or more of new leasing volume was attributable to T.J. Maxx…just to name a few…or a value creation per share...just for these lifestyle tenancy. I can’t resist…we lackluster Sears or Bon-Ton store. Unless three assets. Now extrapolate…and apply continue to give our guests plenty of you’re the Mayor of Simpletown8, it’s a this methodology to Pearlridge Center, reasons to Come Out and Play 12 as well as pretty easy decision. Combine those Southern Park Mall, Grand Central Mall, eat, drink and buy a loveseat or two. names with some local and regional Polaris Fashion Place, Southgate Mall, The flavor…and you have a par Mall at Johnson City...just to name a few. 3
Washington Prime Group: National Footprint with Local Flavor Satisfying Shoppers across Demographic Continuums Satisfying Shoppers across Demographic Continuums Satisfying Shoppers across Demographic Continuums Satisfying Shoppers across Demographic Continuums National Footprint with Local Flavor National Footprint with Local Flavor National Footprint with Local Flavor National Footprint with Local Flavor With 106 town centers throughout the US, we are as American as apple pie. Catering from the aspirant to the affluent and Middle America to metropolis, As a matter of fact, we are also as American as deep dish pizza in Chicago, WPG assets capture the socioeconomic continuum via one of the nation’s Hawaiian poke salad, vegan spring rolls in Malibu, El Paso Tex-Mex, Maryland largest retail portfolios. crab cakes, kimchi in Orange County, Memphis barbeque and a Kansas City porterhouse. In fact, the demographic constituency of WPG is a representative microcosm of the American consumer. Our 56M SF is comprised of Tier One Enclosed and Open Air venues 106 106 106 106 including Lifestyle, Factory Outlet and increasingly a hybrid format which Town Centers Town Centers Town Centers Town Centers includes a diversified mix of products, goods and services. This fluidity allows WPG to beta test across demographic, socioeconomic and geographic constituencies in order to better provide our guests with the practical and relevant as well as the frivolous and exciting whether it be 56M 56M 56M 56M Square Feet Square Feet Square Feet Square Feet fashion, food or furniture. Our well regarded national infrastructure, from Hawaii to Connecticut and everywhere in between, allows our tenant and sponsor partners to benefit from corporate operating efficacy and local management who possesses 4 comprehensive knowledge of the specific locale within which they reside.
Critical Mass of Dominant Town Centers within Robust Secondary Catchments Company Snapshot Company Snapshot Company Snapshot Company Snapshot National portfolio of Enclosed and Open Air retail venues o Comprised of 106 assets consisting of 56M SF as of SEP 30 2019 o Tier One and Open Air assets account for 93% of total NOI as a result of Noncore assets having been reduced by 21% o Diversified by product, size, geography and tenancy o Increasing mixed use component (lodging, residential, office and medical) component via adaptive reuse o Recognized as innovation leader within industry regarding events, activities and installations o Experienced leadership team incorporating financial, operational and strategic expertise o Readily available corporate resources allow for real time decision making by General Managers and local management o Current corporate credit ratings as follows: Moody’s Ba2, S&P BB- and Fitch BB- o Tier One Enclosed Tier One Enclosed Tier One Enclosed Tier One Enclosed GLA GLA GLA GLA Assets Assets Assets Assets Total NOI (%) Total NOI (%) Total NOI (%) Total NOI (%) Mixed Use Percentage Mixed Use Percentage Mixed Use Percentage Mixed Use Percentage by Tenancy by Tenancy by Tenancy by Tenancy by Region by Region by Region by Region 3Q 2019 3Q 2019 3Q 2019 3Q 2019 9% 7% 50% 50% 50% 50% 9% 30% 26% 36% 40% 40% 40% 40% 34% 15% 30% 30% 30% 30% 7% 63% 64% 31% 20% 20% 20% 20% 3% 10% 10% 10% 10% 0% 0% 0% 0% Northeast West Southwest Open Air Tier One Tier Two National Local Regional Anchor >25,000 SF Southeast Midwest 5
3Q 19 HIGHLIGHTS Forecast Forecast Forecast Forecast o Reaffirmed 2019 FFO, as adjusted, and dividend guidance of $1.20 at the midpoint and $1.00 per diluted share, respectively, and; o Maintained 2020 comparable NOI growth forecast of at least 2.0%. Leasing Metrics Leasing Metrics Leasing Metrics Leasing Metrics o Leased 3.2M SF of space YTD of which lifestyle tenancy accounted for 56% of the 3.2M SF; o Combined Enclosed and Open Air occupancy was 92.9%; o Tier One occupancy cost decreased 90 basis points to 11.2%; o Leasing spreads for new Tier One and Open Air transactions increased 1.6%; and o Resolved two additional vacant department stores e.g. 17 of 23 or 74% have been addressed. Leasing Activity Leasing Activity Leasing Activity Leasing Activity New New New New New New New New Renewal Renewal Renewal Renewal Renewal Renewal Renewal Renewal Total Total Total Total Total Total Total Total Square Feet Square Feet Square Feet Square Feet Portfolio Portfolio Portfolio Portfolio YTD as of JUN 30 19 YTD as of JUN 30 19 Lease Count Lease Count Square Feet Square Feet Lease Count Lease Count Square Feet Square Feet Lease Count Lease Count Square Feet Square Feet Change YOY (%) Change YOY (%) Size Size YTD as of JUN YTD as of JUN 30 19 30 19 Lease Count Lease Count Square Feet Square Feet Lease Count Lease Count Square Feet Square Feet Lease Count Lease Count Square Feet Square Feet Change YOY (%) Change YOY (%) Size Size 213 1,184,689 595 2,062,849 808 3,247,538 13% 56.2M 6
3Q 19 HIGHLIGHTS Operating Metrics Operating Metrics Operating Metrics Operating Metrics o Tier One occupancy cost decreased 90 basis points to 11.2%; o Tier One Sales PSF increased 4.6% to $413; o Third quarter comparable NOI growth for Tier One and Open Air was (5.5%); and o Excluding cotenancy and rental income loss impact from bankruptcies, comparable NOI was flat. Capital Markets Transactions Capital Markets Transactions Capital Markets Transactions Capital Markets Transactions Proactively retired at a discount $29.1M of outstanding principal on Senior Notes due 2024; o $68.1M of net loan proceeds raised from the refinancing of four Open Air assets; and o $42.4M of net proceeds raised from the sale leaseback of fee interest in land at four Tier One assets. o Events, Activities and Installations Events, Activities and Installations Events, Activities and Installations Events, Activities and Installations 7 o WPG assets hosted 776 events, activities, installations and tenant activations during the quarter totaling 2,163 YTD;
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