Conforti said in a statement the company will be “concentrating on the basics of our business” over the next few months, a process that will include evaluating the company’s portfolio of retail properties.
The company said it plans to change its name back to Washington Prime Group Inc.
WP Glimcher is a Columbus-based real estate investment trust wthat owns 118 shopping centers, including Polaris Fashion Place in Columbus. The company was formed in 2014 when Glimcher Realty Trust was bought by Washington Prime, a Maryland-based spinoff of Simon Property Group.
Earlier this month, WP Glimcher Inc. released a statement saying it did not have plans to merge with Kite Realty Group Trust, another large retail real estate company based out of Indianapolis.
“While it is the company’s long-standing internal policy not to comment on speculation or market rumors, the company is currently not engaged in negotiations involving a merger or other strategic alternatives transaction with any third party,” Glimcher said in a release.
Michael P. Glimcher, stepped down as chief executive of the retail-focused real-estate investment trust that bought the company in January 2015.
WP Glimcher Inc. also plans to change its name back to Washington Prime Group Inc., its corporate identity before the acquisition, which was worth about $4.2 billion including assumed debt.
Along with Mr. Glimcher’s resignation as CEO and vice chairman, the company named board member Louis G. Conforti interim CEO and said another director, Robert J. Laikin, will be nonexecutive chairman.
In a statement, Mr. Conforti said “during the next few months, the focus is straightforward,” as the company seeks to maximize its cash flow and reduce general and administrative costs. It is also evaluating its “portfolio composition.”
Mr. Conforti has been a principal and executive director at Colony Capital Inc. since 2014.
WP Glimcher expects to take a charge related to its management changes and investigation of strategic alternatives.
A few days after Reuters reported that WP Glimcher and Kite Realty Group Trust were in merger talks, WP Glimcher said June 13 that it “is currently not engaged in negotiations involving a merger or other strategic alternatives transaction with any third party.”
Washington Prime Group was formed in 2014 when Simon Property Group Inc. spun off a group of strip centers and smaller enclosed malls to focus on large regional malls catering to wealthier consumers.
High-end, so-called “A” malls have fared better in recent years than “B” malls. WP Glimcher provided some details about mall categories in its 2015 annual report, when it broke out metrics for “Tier 1” malls with higher occupancy and growth and “Tier 2” malls that are viable but have modest growth.
In May, the company said first-quarter adjusted funds from operation fell 10%, but strong growth at Tier 1 malls contributed to higher occupancy and same-property net operating income at its core portfolio.
In other moves announced Monday, Robert P. Demchak was named general counsel, John F. Levy and John F. Dillon joined the board and Niles C. Overly resigned from the board.
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