2020 Third Quarter Earnings

2020 Third Quarter Earnings

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

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Highlights

Third Quarter Operating and Financial Highlights
  • Net income attributable to common shareholders (“Net Income”) for the third quarter was $0.20 per diluted share (hereinafter “per share”) compared to $0.09 per share in the second quarter of 2020 and $0.82 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 $0.34 per share in the second quarter of 2020 and $0.53 per share a year ago;
  • Cash collections of rent and rebillable expenses increased to 90% of the total for the third quarter from 82% in the second quarter; and,
  • Dispositions in the quarter were $64 million bringing the year-to-date total to $152 million.
COVID-19 Update
  • The coronavirus pandemic continues to impact the Company’s operations, however the transformed portfolio of quality properties posted improved collection metrics in the third quarter.
  • Cash collections in July, August and September totaled 89%, 91% and 90%, respectively of prorata base rent and expense recoveries with the full quarter at 90% compared to 82% for the second quarter.
  • Cash collections in October remain consistent with September with 87% collected to-date.
  • Deferrals of rent payments to future periods executed in the quarter represent an additional 4%, down from 14% in the second quarter.
  • Abatements of rent during the quarter were minimal.

“We are extremely pleased with the increase in cash collections in the quarter as it reflects the strength of our transformed portfolio of quality properties. We are also encouraged by the improvement in leasing activity as we already see leasing velocity returning. With nearly all of our tenants reopened for business, we are very bullish on our ability to weather this storm,” said Johnny Hendrix, Executive Vice President and Chief Operating Officer.

Balance Sheet, Liquidity and Dividends

With low leverage, the absence of any material maturities until the fourth quarter of 2022 and the full availability of its revolving credit facility, the Company is comfortable with its current liquidity position. The Company will continue to carefully monitor cash flows, any new capital requirements, and overall liquidity going forward.

As announced in a previous press release, the Board of Trust Managers declared on September 14, 2020 a cash dividend of $0.18 per common share which was paid on October 13, 2020 to shareholders of record on October 8, 2020. The Company paid its quarterly cash dividend earlier 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.

Third Quarter Resources

Fact Sheet
Weingarten Realty 2020 Q3 Fact Sheet - 1

Weingarten Realty 2020 Q3 Fact Sheet - 2