WPG - Washington Prime: Cracks In The Open-Air Portfolio
Even bullish Washington Prime (WPG) shareholders generally acknowledge that many of the REIT's malls aren't doing well. It's hard to argue otherwise. Year-to-date, comparable NOI has plunged 8% for Washington Prime's "Tier One" enclosed properties. Including Tier Two and non-core malls, it's clear that the NOI figures would be far worse.
However, Washington Prime also owns dozens of open-air properties, mainly consisting of power centers and smaller strip malls. The open-air properties now account for nearly 30% of annual NOI, providing some diversification away from traditional malls.
Many bulls see this diversification as a