WRI 2019 Third Quarter Earnings

WRI 2019 Third Quarter Earnings

Weingarten Realty (NYSE: WRI) Reports Solid Quarter And Increased Acquisition Guidance

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Highlights

Third Quarter Financial Highlights
  • Net income attributable to common shareholders (“Net Income”) for the quarter was $0.82 per diluted share (hereinafter “per share”) compared to $0.34 per share in the same quarter of 2018;
  • Core Funds From Operations Attributable to Common Shareholders (“Core FFO”) for the quarter was $0.53 per share compared to $0.58 per share a year ago;
  • Same Property Net Operating Income (“SPNOI”) including redevelopments increased 2.9% over the same quarter of the prior year and 3.4% year-to-date;
  • Occupancy was 94.7% at quarter-end with small shop occupancy at a ten-year high of 90.7%;
  • Rental rates on new leases and renewals for the quarter were up 15.0% and 4.5%, respectively;
  • Acquisitions totaled $28 million for the quarter and $82 million for the first nine months of 2019; and
  • Dispositions totaled $162 million for the quarter and $362 million for the first nine months of 2019.
During the quarter, the Company, purchased North Decatur Station for $53 million, which is part of a mixed-use development in North Decatur, GA, a very affluent part of Atlanta.
  • Anchored by a Whole Foods 365
  • Strong three-mile demographics with an average household income of $96,500, population of 112,000 and college graduate levels above 60%
  • Partnership with Bouwinvest, Weingarten Realty owns 51% of the property
Subsequent to quarter-end, the Company purchased The Shops at Hilshire Village.
  • This is a neighborhood center anchored by a high-volume Kroger supermarket
  • Located adjacent to the very affluent Memorial Villages in Houston, TX
  • The three-mile demographics are strong with a population of 135,000 people and average household income of $117,000
During the quarter, the Company closed $162 million of dispositions including three centers in California and one each in North Carolina and Texas.
During the quarter, the Company invested $42 million in new developments and redevelopments.

“We continue to upgrade the quality of our portfolio by successfully disposing of assets that are in the bottom portion of our portfolio and reinvesting these proceeds in quality acquisitions as well as our new development and redevelopment projects. We continue to identify quality acquisition prospects, and NOI from our new development projects will begin to accelerate in 2020. Coupled with reduced dispositions next year which should not exceed $150 million, we are well-positioned to grow FFO going forward. With the quality of our portfolio along with our low leveraged balance sheet, we are well-positioned to accelerate this growth into the future,” said Drew Alexander, President, and Chief Executive Officer.

Balance Sheet

“We continue to maintain one of the strongest balance sheets in our sector which not only provides significant security for our shareholders in the event of unexpected market events but also positions us to pursue additional growth opportunities. With no significant maturities till 2022 our financial position is excellent,” said Steve Richter, Executive Vice President, and Chief Financial Officer.

  • Nothing outstanding under the $500 million revolving credit facility
  • $109 million of excess cash invested at quarter-end
  • Net Debt to Core EBITDA is was a strong 4.97 times
  • Debt to Total Market Capitalization was 31.4%

Third Quarter Resources

Fact Sheet
Weingarten Realty 2019 Q3 Fact Sheet - 1

Weingarten Realty 2019 Q3 Fact Sheet - 2