Washington Prime Group Inc. (WPG) stock prices were up 33.86% as of the market close on August 9th, 2021, bringing the price per share down to USD$1.68 at the end of the trading day. Subsequent premarket fluctuations saw the stock fall by 18.45%m bringing it down to USD$1.37.
WPG Stock’s Net Loss
The second quarter of fiscal 2021 saw the company report USD$105.5 million in net loss attributable to common shareholders. This comes out to a net loss of USD$4.26 per diluted share for the quarter, as compared to USD$3.88 in net loss for the second quarter of 2020. Q2 2020 had reported USD$82.1 million in net loss attributable to shareholders. The year-over-year difference was largely driven by changes to WPG stock’s Chapter 11 financial restructuring process. This included prepetition charges of USD$38.1 million, as well as USD$24.4 million in reorganization items during Q2 2021.
Interest Expenses
Interest expense was up by USD$15.1 million in Q2 2021 as compared to the prior-year quarter. This year-over-year change was largely driven by higher interest expense on WPG stock’s corporate debt as a result of default. Growth in comparable NOI partially offset these adverse factors. Comparable NOI was up by USD$30.1 million from the company’s Tier One and Open Air properties. Further contributing to the offsetting were lower impairment charges, which amounted to USD$35 million.
WPG Stock’s FFO
Funds from Operations for Q2 2021 came out to negative USD$43.7 million, representing FFO of negative USD$1.74 per diluted share. This is comparable to the negative USD$9.4 million reported in the prior-year quarter, which represented an FFO of negative USD$0.38 per diluted share. The yearly difference was a result of prepetition charges and reorganization items related to WPG stock’s Chapter 11 financial restructuring process.
Additional Financials
As of June 30th, 2021, the company reported ending occupancy for its core properties came out to 92.1%. This is comparable to the 92.4% reported as of June 30th, 2020. WPG stock’s Tier One properties reported a 2.1% increase in inline store sales, up to USD$433 per square foot. This is comparable to USD$424 per square foot for the same period in 2019.
Future Outlook for WPG Stock
Armed with the strength of its financials, WPG stock is poised to bounce back after a financially tumultuous stint over the past several quarters. With recovery on the horizon, the company is keen to maintain its momentum as it pushes for unprecedented growth in an economy that is gradually returning to pre-pandemic levels. Investors are hopeful to see continued increases in shareholder value.
