Why Washington Prime Group Stock Plummeted 29% Today

Mall-focused real estate investment trust (REIT) Washington Prime Group (NYSE: WPG) lost nearly 30% of its value in the first hour of trading on Feb. 16. There was no question about why: The company filed a very concerning update with the SEC.

The first big piece of news in the SEC filing was that the REIT chose to withhold a $23.2 million interest payment due on Feb. 15. Washington Prime has 30 days to resolve this issue or it would constitute a default and allow some of the bondholders to demand early repayment. It is never a good sign when a company willingly refuses to pay its obligations, though it isn't surprising that a mall landlord would be facing financial strain given the negative impact the pandemic has had on the retail sector.

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Source Fool.com