Weingarten Realty (NYSE: WRI) Reports Strong Fourth Quarter Operations And Issues 2019 Guidance
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Highlights
Fourth Quarter and Full Year Operating and Financial Highlights
- Net income attributable to common shareholders (“Net Income”) was $0.46 per diluted share (hereinafter “per share”) for the quarter and $2.55 per share for the year compared to $1.30 and $2.60 per share for each respective period in 2017;
- Core Funds From Operations Attributable to Common Shareholders (“Core FFO”) was $0.55 per share for the quarter and $2.28 per share for the year compared to $0.61 and $2.45 per share for each respective period in 2017;
- Same Property Net Operating Income (“SPNOI”) including redevelopments increased by 3.4% over the fourth quarter of 2017 and by 2.5% over the full year 2017;
- Rental rates on new leases completed during the quarter were up 37.4% and 18.7% for the full year;
- Signed occupancy was unchanged from the third quarter of 2018 at 94.4%;
- Dispositions totaled $241 million in the fourth quarter and $635 million for the full year;
- Balance sheet leverage was reduced with Net Debt to Adjusted EBITDA declining to 5.00 times; and,
- A special dividend of $1.40 per share was paid to shareholders in December of 2018.
During the quarter, the Company closed $241 million of dispositions with the sale of the following shopping centers and two land parcels:
- Stoneridge Towne Centre in Moreno Valley, CA (Partial sale to complete disposition of the property)
- South Fulton Crossing (Land) in Union City, GA
- Regency Centre in Lexington, KY
- Surf City Crossing in Wilmington, NC
- Cullen Plaza in Houston, TX
During the quarter, the Company invested $139 million in new developments and redevelopments, and expects to spend around $200 million in 2019.
Balance Sheet improvements include:
- Net Debt to Core EBITDA was a strong 5.00 times, and
- Debt to Total Market Capitalization was 35.8% at year-end.
The Company’s guidance for 2019 is as follows:
Net Income (per share) | $1.77 – $1.89 |
NAREIT FFO (per share) | $2.09 – $2.17 |
Core FFO (per share) | $2.09 – $2.17 |
Acquisitions | $50 – $150 million |
Re / New Development | $175 – $225 million |
Dispositions | $250 – $350 million |
Same Property NOI with redevelopments | 2.00% – 3.00% |
Fourth Quarter Resources
Fact Sheet