Weingarten Realty (NYSE: WRI) Reports First Quarter Results And Provides COVID-19 Update
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First Quarter Financial Highlights
- Net income attributable to common shareholders (“Net Income”) for the quarter was $0.41 per diluted share (hereinafter “per share”) compared to $0.39 per share in the same quarter of 2019;
- Core Funds From Operations Attributable to Common Shareholders (“Core FFO”) for the quarter was $0.44 per share compared to $0.52 per share a year ago;
- Bad debt expense/uncollectible revenue was $9.0 million related to COVID-19
- The $9.0 million includes $7.0 million of non-cash straight line rent receivables;
- Net Debt to EBITDA was a strong 6.1x;
- Investments in acquisitions totaled $43 million; and
- Dispositions for the quarter totaled $73 million.
During the quarter, the Company acquired two properties for $43 million.
- Village Green Center – Wellington, FL
- Stevens Creek Corner (8,000 SF multi-tenant building adjacent to Stevens Creek Central – San Jose, CA
COVID-19 Update as of May 5, 2020
- 64% of total April 2020 Annualized Base Rent (“ABR”) and recoveries has been paid to date
- 62% of tenants, based on ABR, are designated “essential businesses”
- $501 million cash & cash equivalents currently on balance sheet
“As to rents still outstanding, our associates are working very hard to obtain commitments from our tenants. Primarily, we are negotiating deferrals only that will generally be payable in the latter half of 2020 and in some cases into 2021. Our results demonstrate the significance of our portfolio transformation which resulted in a substantial upgrade in the credit quality of our tenancy,” said Johnny Hendrix, Executive Vice President and Chief Operating Officer.
Balance Sheet, Liquidity and Dividends
The Board of Trust Managers declared a cash dividend of $0.18 per common share payable on June 16, 2020 to shareholders of record on June 8, 2020. As to dividend payments, it is important to understand the Company position with respect to its 2020 dividend obligation. With large gains realized from disposition activities in 2019, the Company was able to eliminate a special dividend in 2019 by making an election to pay those dividends in 2020, as allowed by IRS regulations and disclosed in its Form 10-K. This enabled the Company to not only retain capital for reinvestment but also to shift dividends to 2020, a year in which the Company intended to greatly reduce disposition volumes and the related taxable gains.
“The significant deleveraging of our balance sheet was an important part of our multi-year transformation strategy. The future remains uncertain, but the strength of our balance sheet and our strong liquidity position will be more than sufficient to maximize the profitability of our portfolio once again. We clearly have the capital to continue to operate the portfolio, complete the new developments, which require little additional capital, and pay the announced dividend.” said Steve Richter, Executive Vice President, and Chief Financial Officer.
First Quarter Resources