2020 Second Quarter Earnings

2020 Second Quarter Earnings

Weingarten Realty (NYSE: WRI) Reports Second Quarter Results And Provides COVID-19 Update

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Highlights

Second Quarter Operating and Financial Highlights
  • Net income attributable to common shareholders (“Net Income”) for the quarter was $0.09 per diluted share (hereinafter “per share”) compared to $0.65 per share in the same quarter of 2019;
  • Core Funds From Operations Attributable to Common Shareholders (“Core FFO”) for the quarter was $0.34 per share compared to $0.53 per share a year ago;
  • Bad debt expense/uncollectible revenue primarily related to COVID-19 for the quarter was $19.3 million or $0.15 per share and included $4.8 million or $0.04 per share of non-cash straight line rent receivables; and
  • Dispositions to date totaled $131 million, including property sales closed subsequent to quarter-end totaling $43 million.
COVID-19 Update
  • At the end of the second quarter, approximately 95% of the Company’s tenants were open for business though conditions are ever changing
  • Cash collections in April, May and June totaled 77%, 73% and 79%, respectively of prorata base rent and expense recoveries
  • For the second quarter, overall cash collections were 77%. These strong cash collections are a definitive reflection of the Company’s successful transformation of its portfolio over the last several years

“We continue to devote a tremendous amount of effort in assisting our tenants in their reopening efforts and to obtaining rent payments. We are extremely pleased with our cash collection results which continue to improve. We remain confident that our transformed portfolio of quality properties will enable us to weather this storm,” said Johnny Hendrix, Executive Vice President and Chief Operating Officer.

Balance Sheet, Liquidity and Dividends

The benefit of the Company’s best in class balance sheet has been highlighted by this crisis. With low leverage and the absence of any material maturities until the fourth quarter of 2022, the Company is comfortable that it has adequate liquidity to restore its properties to their full operating potential.

The Board of Trust Managers declared a cash dividend of $0.18 per common share payable on September 15, 2020 to shareholders of record on September 8, 2020. As communicated last quarter, the Company will likely pay a regular cash dividend of $0.18 per share in each of the last two quarters of 2020 due to an election made last year to shift dividend payments from 2019 to 2020.

“With $498 million currently available under our revolver, cash collections trending at higher levels than originally projected, proceeds from additional dispositions and access to numerous other sources of capital, we remain comfortable with our ability to meet all liquidity needs going forward, including any additional dividends required by our disposition activity,” said Steve Richter, Executive Vice President and Chief Financial Officer.

Second Quarter Resources

Fact Sheet
Weingarten Realty 2020 Q2 Fact Sheet - 1

Weingarten Realty 2020 Q2 Fact Sheet - 2